Property 2014 Suarez Cutie 1

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LAWS ON PROPERTY 2014

Based on the Lectures of Atty. Melissa Romana P. Suarez
June 11, 2014

and intangibles) which are owned privately whether in
a collective or individual manner
We will not only be taking up property under the Civil Code
Those are the three kinds of things according to their
but also the special law -‐ Intellectual Property Law.
nature of ownership (how you can actually own these
things). Now take note that in res communes, one cannot
Let’s start with the definition of property.
appropriate these properties just like the sunlight but its
 Property as a subject: branch of civil law which
enjoyment is available to everyone.
classifies and defines different kinds of appropriable
objects, provides for their acquisition and loss, and
Now, let’s go to the characteristics of property:
treats on the nature and consequences of real rights in
1. Utility – it can be used for whatever reason (like a
relation to property
brush, cellphone, laptop, etc.) for a satisfaction of
 Property under the Civil Code: that which or may be a moral or economic want
appropriated (under Article 414)
2. Susceptibility of appropriation – we already
discussed this
What do you mean by appropriate? Is it used as a verb or as
3. Individuality or Substantiability – it can exist by itself
an adjective? and not merely as a part of the whole (example: A
-‐ The dictionary says that appropriate can be used as strand of hair or zhair on one’s head. As long as the
a verb. As a verb, it means to allot for a specific use hair is connected to the head, it is not considered
or to take possession of. as a property because it’s part of a person. But if
-‐ It can also be used as an adjective which means you decide to sell your hair to the parlor, then the
that it is suitable or appropriate. hair that has already been detached from your
head can already be called a property because it
“Appropriate” in property is used as a verb which means
has already acquired its own individuality.)
that a property can be allotted for a specific use. In the Civil
Code, if you look at the provisions, the term “property” is That is the introduction of property. In your book, there is
used interchangeably with “thing.” So if you encounter an enumeration of classification of property, just read
‘property’ or ‘thing’, it refers to that which can be them.
appropriated. But technically, thing is broader for it
includes objects that cannot be appropriated. An example Let’s go to the provisions.
of that which cannot be appropriated is a star. Thus, a star
cannot be considered a property but it is a thing. We Title I – Classification of Property
cannot say that it’s nothing because it’s there.
The main classification of property is found under Article
According to Paras, air is a thing but if a part of it is placed 414.
in a container, it can be considered property. Take note,
when we talk about property, we are not only talking about Art. 414. All things which are or may be the object of
tangible objects but also intangibles like rights and credits. appropriation are considered either:
(1) Immovable or real property; or
Let’s go to the classification of things according to the
(2) Movable or personal property. (333)
nature of their ownership. We are talking about things, not
property.
What do you mean by immovable? Something that cannot
 Res nullus – belonging to no one, the reason why they
be moved? We have Article 415 which enumerates what are
do not belong to anyone yet is that they have:
the “immovable”. In other words, there is no exact
a. not yet been appropriated (fish in the sea)
enumeration of “immovable property.” There is merely an
b. been abandoned (note that when a thing is
enumeration. Article 415 provides an exclusive list of what
abandoned, it does not have an owner)
is considered as immovable under the law. We are not
 Res communes – it belongs to everyone; their use and
talking about “immovable in fact” but “immovable in law.”
enjoyment are given to all just like sunlight, the rain or
the air
Before we go to 415, let us look into the different kinds of
 Res alicuus – it belongs to someone, those that you can
immovable property.
consider as “property”; those are objects (tangibles
1. Immovable by nature – this is the easiest because
they cannot be moved from place to place because
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of its nature just like this building (you cannot

(9) Docks and structures which, though floating, are
transfer it from one place to another) or the land
intended by their nature and object to remain at a fixed
(you cannot move the Philippines to the North
place on a river, lake, or coast;
Pole or move Toril to Tagum)
(10) Contracts for public works, and servitudes and other
2. Immovable by Incorporation – those which are
real rights over immovable property. (334a)
essentially movable; meaning they can be moved
from place to place (movable by nature) but
Par. 1: Land, buildings, roads and constructions of all kinds
because they are attached to immovable, they
adhered to the soil
become integral part of the immovable so that’s
why they are called immovable by incorporation
Land: If I ask you why land is immovable, do not answer me
3. Immovable by destination or purpose – the purpose
that it is immovable because it cannot be moved from one
is to consider such property immovable but it is the
place to another. A good law student will say “Yes, land is
law which says that it is movable or not; it is
immovable. Article 415, paragraph 1 of the Civil Code
essentially movable but for the purpose that they
expressly provides that land is an immovable property.
have been placed, they become immovable
Hence, land is immovable.” Do not give me facts. Okay?
4. Immovable by analogy or law – the law will dictate
that it is immovable (examples: right of usufruct,
When we talk about land, we are not talking about soil.
contract for public works, easements or
What if land is merely rented? It is still considered
servitudes)
immovable because the law says so.
This is one of the important provisions in Book 2 of the Civil
Building: A building, tos be considered immovable, must be
Code.
adhered permanently to the soil. Diba we can buy houses
Art. 415. The following are immovable property:
na ma-‐move from place to place? It’s a building diba? Under
(1) Land, buildings, roads and constructions of all kinds
the law, it is not immovable ha kasi the building must be
adhered to the soil;
adhered to the soil.
(2) Trees, plants, and growing fruits, while they are
attached to the land or form an integral part of an
For example, the Jesuits will build a building for us. So they
immovable;
will demolish the D building. The building is made up of
(3) Everything attached to an immovable in a fixed
different parts – doors, windows, walls, etc. What happens
manner, in such a way that it cannot be separated
to these things kung may demolition? Once the building is
therefrom without breaking the material or deterioration
demolished, it will not be made up of different parts like
of the object;
the door will be separated. According to Paras, it is not the
(4) Statues, reliefs, paintings or other objects for use or
building or the materials of such would not be considered
ornamentation, placed in buildings or on lands by the
personal or movable (?). So, take note.
owner of the immovable in such a manner that it reveals
the intention to attach them permanently to the
Constructions of all kind adhered to the soil: Paras said in
tenements;
the book that if you want to consider a construction as
(5) Machinery, receptacles, instruments or implements
immovable, it must be adhered to the soil. So railroad
intended by the owner of the tenement for an industry or
tracks are considered as immovable because they cannot
works which may be carried on in a building or on a piece
be removed easily. You have to use machine, diba? They are
of land, and which tend directly to meet the needs of the
really adhered to the soil. That’s an example. What is not an
said industry or works;
example of construction are scaffoldings which are
(6) Animal houses, pigeon-‐houses, beehives, fish ponds or
constructed pag-‐may building na kino-‐construct. It’s not
breeding places of similar nature, in case their owner has
famous in the Philippines but in Hong Kong, they use it. So
placed them or preserves them with the intention to have
scaffoldings are merely personal property.
them permanently attached to the land, and forming a
permanent part of it; the animals in these places are
Par. 2: Trees, plants, and growing fruits, while they are
included;
attached to the land or form an integral part of an
(7) Fertilizer actually used on a piece of land;
(8) Mines, quarries, and slag dumps, while the matter immovable
thereof forms part of the bed, and waters either running
According to our author, if we talk about paragraph 2 and
or stagnant;
relate it to the four kinds of immovable, they are
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considered immovable by nature if they are spontaneous

moved from place to place but since it is welded to the
product of the soil. The author is also saying that they are
building and embedded to it, it cannot be moved na. It is
immovable by incorporation if they are planted by labor
attached in a fixed and permanent manner. If you want to
(example: rice or palay).
move it, you have to destroy a part of the building. So, for
as long as that fire escape is permanently fixed to the
Seeds are actually movable but if you attached them to the
building, it has an immovable character under paragraph 3.
soil and plants came out, plants are considered immovable.
This property is immovable by incorporation. Hence, it is
Take note ha, immovable as long as they are attached to
only the fact of incorporation that makes it immovable.
the ground. The moment you cut the crops or plants, they
Once it is separated from the immovable, in one way or
are no longer immovable.
another, it loses its immovable character. So it becomes
movable or personal property under the law.
Ang durian tree is immovable. The durian fruit is
immovable. But if you harvest the fruit, it becomes
Let us say, the fire escape is rusty na and it has to be
movable.
repainted so it is detached and brought to the shop. While
it is being repaired, it is considered movable. While it is lost
Paras said that in case of uprooted timber from timber
or destroyed during the repair, the effects of movable
land… just because it’s uprooted doesn’t mean that it lose
property (as to loss or acquisition) will apply or govern.
its immovable character. From timber land ha.
Once it is returned or reattached to the building, then
again, it will acquire its immovable character.
Case of Jaranillo: Land is immovable under par. 415 par. 1.
Let’s say A owns the parcel of land and he does not have
Don’t forget that what makes it essentially immovable is
money so he mortgage the land. But the person who wants
the fact of incorporation. Hence, the second kind of
to lend A money does not want to enter into a real estate
immovable property – immovable by incorporation.
mortage but a chattel mortgage. So B wants to enter into a
chattel mortgage with A and treats A’s land as movable,
Paragraph 3 has certain characteristics.
pwede ba yun? Now, A fails to pay the land so there is
1. It cannot be separated from the immovable
foreclosure in favor of B. After one year, A wants to redeem
without breaking or causing deterioration
the property and B will says that A no longer have a right of
2. Attached by anyone permanently and fixed
redemption because his land was considered as movable.
Now, A will say that it cannot be possible because Article
Who has to put or connect or attach the fire escape to the
415 provides that land is immovable. So who is correct?
building? Anyone. No need for the owner of the building or
B is correct according to the case of Jaranillo which
of the fire escape. Why? Because the requirement is only
provides that parties in a contract may, by agreement,
that it is attached to the building fixed and permanent – so
treat as personal property that which by nature is a real
the fact of incorporation lang.
property. The doctrine applied here is doctrine of
estoppel.
Par. 4: Statues, reliefs, paintings or other objects for use or
June 13, 2014
ornamentation, placed in buildings or on lands by the
owner of the immovable in such a manner that it reveals
Par. 3: Everything attached to an immovable in a fixed
the intention to attach them permanently to the tenements
manner, in such a way that it cannot be separated
therefrom without breaking the material or deterioration of
Who should attach the properties (statues, reliefs, etc.)?
the object
Owner of the land or building where it will be attached.
This property is immovable by incorporation – one that is
So, the owner places the painting into the building in such a
essentially movable but since attached to an immovable, it
way to let everyone know that his intent was to place it
acquires the immovable character. The attachment must be
there permanently. Like, if the owner places his portrait in
in a fixed and permanent matter.
the living room, his intention is (of course) to place it there
permanently. It doesn’t have to be attached in a way that if
The classic example given by our author is a fire escape
the owner removes it, it will rip. You have to see the
connected to the building, yung steel staircase. This steel
intention.
staircase is welded on the building. So on its own, the steel
staircase is essentially movable in the sense that it can be
algene c.
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Article 415, paragraph 4 falls under immovable by purpose

In paragraph 4, we are talking of things owned by
or destination. However, what if the statue is permanently
individuals (those found in offices, houses, gardens, etc.).
attached to the ground through a cement, then it is also
In paragraph 5, we refer to properties which are for
immovable by incorporation. Again, paragraph 4 is
business entities. There must be a business involved which
immovable by purpose or destination OR immovable by
must be carried on the land or building where the
incorporation. Just look at the purpose.
machineries were attached.
What are the characteristics? It doesn’t have to be
The classic example is the case of San Miguel in Darong.
necessary that it be permanently attached in a way that
They have the brewery machines inside the building. The
when removed, it will break. However, it is required that it
machines are intended by the owner of the building
be placed by the owner of the land or building
(assuming SMB is the owner of the building and even if the
(immovable).
land is not owned by SMB) for industry or work. SO the
brewery machines are immovables. Even if the machines
Why does it have to be the owner of the immovable?
can be dismantled, under paragraph 5, they are considered
Because you will see the intention that he wants to place
immovable.
the property to his immovable permanently. Kung guest
lang ang magbutang sa painting, then of course iya na
Requisites:
kuhaon. So there is no permanence, diba? If it is placed by a
1. Must be placed by the owner of the tenement, his
mere tenant, then not immovable. Such is considered
agent or his duly authorized representative
personal property even if attached to the wall because only
2. The industry or works must be carried on the
the tenant placed it there, dili permanent.
building or the land
3. The machines must directly tend to meet the
So does the painting or the relief need to be placed on the
needs of the industry or work
wall to be considered immovable?
4. They must be essential and principal elements of
NO. As long as the intention of the owner to attach it there
the industry
permanently is present. See the intention.
Bar Answer: Computers are not principal or essential
Examples given: Wall to wall carpeting (use for
elements of an industry. They do not tend to directly meet
ornamentation) , statue, moldings, baseboards
the need of the industry or work, hence not immovable.
Take note ha, a canning property can operate without a
Let’s distinguish paragraphs 3 and 4:
computer but not without the canning machine. Paragraph
Par. 3 Par. 4
5 refers only to those machineries that are essential or
Only by incorporation (no There is a need to see the
principal elements of the industry.
need to see the purpose) purpose of permanence
Needs the characteristic of No need to be attached in a
Again, in paragraph 5, it is important that it be installed or
attachment; way that it cannot be
placed by the owner of the land or the building. Pwede pud
if you detach it is will break removed without breaking
agent niya or duly authorized representative.
the property because it is
not the fact of incorporation
General rule: Machineries attached to the buildings or lands
that is important but the
are immovable (provided all the requisites are present)
fact of purpose or
Exception: They are considered movables if they are placed
destination
by a mere tenant
No need to be placed by the Must be placed the owner
Exception to the exception: They are considered
owner of the immovable or the
immovable if the tenant promises to leave the machineries
agent
on the tenement or the land after the land expires
Par. 5: Machinery, receptacles, instruments or implements

Example sa exception: A rents the building and he is in a
intended by the owner of the tenement for an industry or
canning industry. When he places canning machines to the
works which may be carried on in a building or on a piece of
rented building, dili immovable ang machines because he is
land, and which tend directly to meet the needs of the said
not an owner. He could be gone by next year pagma-‐expire
industry or works
and contract.
algene c.
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Example sa exception to the exception: Banks transfer

What if you dog gives birth and you give or sell the puppies?
from one place to another diba. So, they rent places. If they
The transaction is considered one involving personal
place a vault to the rented area, usually, it’s considered
property. But if you sell the dogs with the dog house, it is
immovable because even if it’s placed by a lessor, there is
considered as a transaction for real properties.
an agreement in the contract na once the bank leaves, dili
tanggalon ang vault. So it is immovable. If the bank does
That is why this thing doesn’t come out in the bar because it’s
not leave the vault, it is not immovable na under paragraph
confusing.
5.
BUT under paragraph 3, it is considered as immovable
In order for the dog house or pigeon house to be
because the vault is cemented.
considered immovable, they must be cemented ha.
So you have to be very careful. Maybe this particular thing
Par. 7: Fertilizer actually used on a piece of land
cannot be considered immovable under one paragraph
pero sa other paragraph kay immovable pala.
Of course, if you buy fertilizer, by sack yan, it’s movable. If
you use it and spread it to the land, it’s immovable na. Once
Let’s just go through the five others without going into
incorporated or embedded to the soil, wala na. It becomes
details… because they are not popular when you talk about
part of the land and it loses its movable character. So it is
the bar exam.
actually not the fertilizer that is immovable but the land
where it is incorporated.
Par. 6: Animal houses, pigeon-‐houses, beehives, fish ponds
or breeding places of similar nature, in case their owner has
Par. 8: Mines, quarries, and slag dumps, while the matter
placed them or preserves them with the intention to have
thereof forms part of the bed, and waters either running or
them permanently attached to the land, and forming a
stagnant
permanent part of it; the animals in these places are
included
They must be attached to the ground. When they are
extracted (the minerals), they become personal property or
Did you ever know that an animal or a fish can be movable. What is this slag dump? The definition is in the
considered as a real property? But there are conditions ha.
book. Inside the slag dump, you can find minerals. This is
more discussed in Environmental Law.
Example you have a bird house in your house… Who is
supposed to place the bird house there? The owner of the
Par. 9: Docks and structures which, though floating, are
bird.
intended by their nature and object to remain at a fixed
place on a river, lake, or coast
Let us say I rent a parcel of land belonging to you for one
year. I have a bird and I constructed a bird house on your Although they are floating but they are permanently
land for the bird. According to paragraph 6, the bird house attached in the middle of the river or along the docks, then
or bird is considered immovable. By permanent here, we do they are considered immovable. Vessels, ships, boats or
not mean forever. bancas that move from place to place are considered
movables.
According to Paras, the animals that are temporarily
outside may still be considered as real property even if they Par. 10: Contracts for public works, and servitudes and
are outside the animal house provided that they return. other real rights over immovable property.
So let us say you have a dog house cemented on your This is immovable by law or analogy.
garage and the dog goes in and out… The author says that
even if he goes out but returns, he is considered as real If you are a DPWH contractor, then that contract is real
property. BUT this is Civil Law. property by law. The contents of the contract are
immovables, the paper is immovable. Easements, which we
What if the dog is stolen? Can it be the subject of theft? are going to take up, are also immovables.
Under Criminal Law, yes. The dog can be an object of theft
(personal property). CASES
algene c.
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Machinery and Engineering vs. CA: We have a limestone

treat them as movable, then they can be the subject of
factory here. The factory has some machines inside the
replevin.
building. The issue here is: WON the machines are
BUT the SC was very clear in this case: It should be
immovable or not. They are immovable. Under paragraph
stressed, however, that our holding of the machinery as
3, they are immovable by incorporation because they are
movable property pursuant to the lease agreement is
attached to the ground permanently. They cannot be
good only insofar as the parties are concerned. Hence,
removed or dismantled without causing damage or injuries.
while the parties are bound to the agreement, third
Therefore, they considered immovable under paragraph 3.
parties in good faith are not affected by its stipulation
They are also considered immovable under paragraph 5
characterizing the said machineries as personalty.
because they were placed by the owner of the land for the
This case is one of the best illustrations of our paragraph 5
purpose of processing the limestone into something else.
and the decisions of the Supreme Court in doctrine of
estoppel.
PRC, Inc. vs. Jarque: WON the tailings dam is immovable.
The SC said that is immovable under paragraph 1 because it
In your book of Paras, there is a short annotation there in
is permanently adhered to the soil and under paragraph 3.
relation to the Meralco case. According to the SC in the
Meralco case, the electrical towers constructed by Meralco
Davao Sawmill vs. Castillo: Davao Sawmill leases a parcel of
are considered movable, not immovable. Why? Because
land. The issue is WON the machineries and equipment
they are placed in xxx property and even if they are
attached to the land are personal properties. The SC held
embedded on the soil and permanently placed there, the
yes because the properties were not introduced by the
SC applied paragraph 5. If you want to know the explanation
owner of the land. This is an application of paragraph 5. The
why, read the citation in the book. Compare the case of
tenant placed the properties attached to the ground. Since
Meralco to Caltex.
the machineries are attached by a mere tenant and there is
a clear stipulation in the contract that after its expiration,
Caltex vs. CBAA: Those underground tanks, elevated tanks,
Davao Sawmill will leave everything except the
air compressors, gas xxx, etc. cannot fall under any
machineries… then the machineries are personal
provision of Article 415. It is difficult to look for provisions
properties. The general rule will apply (refer to discussion
of the law to consider the equipment in this case
above). In this case, Davao Sawmill failed to pay their bills
immovable so the SC did not say that they are immovable
to Davao Light and the latter won a case against the
under any provisions in Article 415.
former. So the latter is requesting that the properties be
BUT just because they cannot be considered immovable
attached so they can be paid the light bill.
under Article 415, the SC said that they are improvements
The issue here is also WON the machineries can be subject
subject to realty tax. In our country, we have different
to a writ of replevin. The SC said that yes because the
taxes. If you have land and you build improvements
properties are movable.
thereon, then you are liable for realty taxes.
What I’m saying is even if we have our Civil Code provisions
Serg’s Products vs. PCI: The machineries, chocolate-‐making
on what is immovable and not, we also have other laws just
machines, are considered as immovable under par. 5 of
like the Revised Penal Code, Tax Code, etc. Like the Tax
Article 415 because all the requisites are present.
Code has a different criteria for the imposition of realty tax.
However, these machines were purchased by Serg’s
So here, the SC did not say into what paragraph in Article
Product from abroad and it entered into a contract with PCI
415 does the equipment fall. It merely said that they are
Finance wherein PCI paid for the machines and in turn,
taxable merely as improvements.
Serg’s Product entered into a contract of lease with PCI. In
the contract, they agreed that the machines would be
Meralco case vs. Caltex case:
considered as movable property.
The SC said here that Caltex is distinguishable from the
Does the contract change the characteristic of those
Meralco case. Another law was applied in the Meralco case
machines as immovable? The answer is no. The machines
which says that the franchise of Meralco which states that
are immovable under the law – par. 5.
the poles are exempt from realty taxes. Therefore, the
However, between the parties, because they considered
towers are considered as personalty because they are
the machines as personal properties, then the effects will
attached to xxx by means of bolts and could be moved
be that of personal properties… Like can the properties be
from place to place when unscrewed and dismantled.
a subject of replevin? The SC yes. Even though
So, not immovable under par. 1 because they are not
characterized as immovable under the law but the parties
permanently adhered to the soil; not immovable by
algene c.
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incorporation because they can be moved whenever;

not
algene c.
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immovable under par. 5 because they are not placed by the

Par. 4: In general, all things which can be transported from
owner of the land.
place to place without impairment of the real property to
which they are fixed.
Art. 416. The following things are deemed to be personal
property:
CASES
(1) Those movables susceptible of appropriation which are
not included in the preceding article;
Sibal vs. Valdez: Sugarcane on land is owned by Sibal. Sibal
(2) Real property which by any special provision of law is
owed a sum of money to Valdez and he failed to pay. Now
considered as personal property;
Valdez attached the sugarcane. You learned na if there is
(3) Forces of nature which are brought under control by
attachment, there is no redemption for personal property
science; and
but when it comes to real property, there is a redemption
(4) In general, all things which can be transported from
period of one year. SIbal can actually redeem his sugarcane
place to place without impairment of the real property to
from Valdez if such is considered as real property. Now
which they are fixed. (335a)
Sibal redeemed the property within the one year period but
Valdez said no.
Par. 1: Those movables susceptible of appropriation which
The SC said that sure the sugarcane is considered as
are not included in Article 415.
immovable under paragraph 2 of Article 415 but the Chattel
Mortage Law provides that growing fruits (not only
This is the principle (or test) of exclusion – those movable
sugarcane) must be regarded as personal property
susceptible of appropriation; those that do not fall under
because the right to growing crops mobilized the crops by
Article 415. Again, Art. 415 is exclusive so anything not
anticipation. The sugarcane is not going to stay there
enumerated is considered as movable. According to the SC
forever because it will be harvested.
in many cases, this is the superior test.
So in general, sugarcane is considered immovable under
par. 2 of Article 415 but if it is mortgaged or attached, it is
We also have the test of description -‐ In general, all things
considered as personal property and therefore can no
which can be transported from place to place without
longer be redeemed.
impairment of the real property to which they are fixed.
Don’t forget the term mobilized by anticipation.
(par. 4)
Laurel vs. Judge Abrogar: You all know that stealing

However, if the law says, Article 415 says that it is
electricity is theft. Electricity is considered as personal
immovable even if it can be moved from place to place just
property under Article 416 and can therefore be a subject of
like painting, still it is immovable. Since the law says it is
theft.
immovable, then therefore, it is immovable despite par. 4
In this case, PLDT is the only provider for communication
of Article 416. Test of Exclusion > Test of Description
services. Laurel was able to offer a service wherein he can
Par. 2: Real property which by any special provision of law is connect calls maybe by using the PLDT system. So the
considered as personal property question is, is he stealing under paragraph 3 of Article 416?
The SC said no. He did not steal under par. 3 of Art. 416 but
This is the exception to Article 415. If real property is he stole the business opportunity of PLDT. Because he was
considered by a special law as personal, even though it is able to connect two people from two different places,
real property under Article 415, then it is personal property these two people will no longer avail the services of PLDT
or movable. so there was a loss of opportunity or business for PLDT.
Therefore, PLDT has the right to sue Laurel the amount that
What will prevail between a general law or a special law? it lost caused by Laurel.
Special law.
My point is that telephone call does not fall under par. 3 of
Par. 3: Forces of nature which are brought under control by Art. 416 unlike electricity and other forces of nature which
science can be stolen.
These are intangibles like electricity, gas, etc. June 16, 2014
We already looked at Articles 415 and 416. If you noticed,

Art. 416 talked about intangibles under par. 3. If you
algene c.
9
compare that with Art. 417, 417 provides also what are
considered as personal property.
If you have an interest in the business or share of the
business, that is considered as personal property. Now, if
Art. 417. The following are also considered as personal you also have a building for the store, your interest there is
property: real property. Make sure to know the difference.
(1) Obligations and actions which have for their object
movables or demandable sums; and Art. 418. Movable property is either consumable or
(2) Shares of stock of agricultural, commercial and nonconsumable. To the first class belong those movables
industrial entities, although they may have real estate. which cannot be used in a manner appropriate to their
(336a) nature without their being consumed; to the second class
belong all the others. (337)
Par. 1: Obligations and actions which have for their object
movables or demandable sums This article is very easy, you have taken this during your
ObliCon.
Obviously, obligations and actions that are not tangible at
all. So one can choose to demand for these just like in the So how are movables classified?
case of Laurel vs. Abrogar because Laurel stole the business 1. Consumable -‐ those which cannot be used in a
of PLDT, so an action arose to collect some particular manner appropriate to their nature without their
amount – the loss that PLDT suffered (at this is considered being consumed
as personal property.) Example: Erases, The ink of the ballpen (it’s the ink
that is consumable, not the ballpen ha kasi you
If you have a right to file an action for replevin, the recovery cannot consume it), shampoo
of a movable, then that right is also considered personal 2. Non-‐consumable – all those that do not fall under
property. Because Art. 417 says “which have for their object the first category
movables or demandable sums” so movables and money Example: Ballpen
only.
Included in this category are fungible or non-‐fungible.
BUT take note that if you have a right of action to recover a
parcel of land, such right not considered personal property. What makes a thing fungible or non-‐fungible? The
agreement of the parties.
According to Paras, recovery of a possession of a house is
considered real property under Article 415, par. 10. A real Example: A painting painted by Remnant is non-‐
estate mortgage is also a real property by analogy, also consumable because it cannot be replaced by a new
under Art. 415 (10). painting because the painter is already dead. So it is non-‐
fungible by the nature of the thing. Or like a car that is
Par. 2: Shares of stock of agricultural, commercial and custom-‐made, there’s only one of its kind. Thus, it is also
industrial entities, although they may have real estate non-‐fungible by the nature of the thing.
So you have a corporation that has real property like Ayala Example: This pen becomes non-‐fungible if I say you can
land… If you invest in Ayala land, the share that you buy is borrow it but you have to return this particular pen and
considered personal property even if Ayala land is engaged nothing else. Again, it depends on the agreement of the
in real properties. parties. If you say na you’ll borrow my pen today and return
it tomorrow, and in case mawala mo, you will replace it
The certificate of stocks is different from the share itself. with a new one… tapos I tell you I don’t want a new one
Share means that you are a part-‐owner of the corporation. then the pen is non-‐fungible. It becomes non-‐fungible
Certificate is a paper which says that you are the owner. because of the agreement of the parties.
Paras gave an example which says: A ½ interest in a When you talk about consumability, you don’t only talk
convenience store business should be considered personal about the nature of the thing plus agreement between the
property. While ½ interest in the building of the store is a parties (on won it is fungible or not.)
real property. (Example kung may partnership kaya half
interest lang).
algene c.
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We already tackled the first classification of property as to

What does “such as” mean it par. 1? That the list in par. 1 is
movability or immovability. That’s the main and most
not exclusive. These are just examples (roads, canals, rivers,
important classification. Now, we have a new classification
etc.).
as to who owns the property. Our issue now (referring to
next art.) is who owns the property, not won it is movable
If you live in Woodridge, can you say that the roads in
or not. Okay?
Woodridge are intended for public use? No, because the
roads are not “constructed by the state”.
Art. 419. Property is either of public dominion or of private
ownership. (338)
If the river goes through the property of another, then that
is property of public dominion. Look at the enumeration of
Who can own property?
Paras in the book. We will be taking up all these as we
1. Private individuals (Judicial or natural persons)
move along so just take note of the enumeration given
2. Public dominion (State, LGU)
there.
Art. 420. The following things are property of public
Par. 2: Those which belong to the State, without being for
dominion:
public use, and are intended for some public service or for
(1) Those intended for public use, such as roads, canals,
the development of the national wealth.
rivers, torrents, ports and bridges constructed by the
State, banks, shores, roadsteads, and others of similar
What do you mean by properties for public service? Those
character;
which cannot be used by the public but only by authorized
(2) Those which belong to the State, without being for
persons (state). Those which belong to the state but not
public use, and are intended for some public service or for
for public use. Like police car – you cannot use it kasi these
the development of the national wealth. (339a)
are properties for public service.
Article 420 tells us what are the property of public
What are the properties for the development of the
dominion, meaning they are not in private ownership.
national wealth? The natural resources, the forest lands,
Article 420 is an enumeration.
timberlands and mineral lands.
There are three kinds of property of public dominion:
If the property is of public dominion, it has certain
1. For public use
characteristics:
2. For public service
1. It is outside the commerce of man – it cannot be
3. For the development of national wealth
subject of mortgage (you cannot mortgage the
Sanggunian or the Hall of Justice) or sell; note: it
According to our legal luminary, JBL Reyes Puno, property
can be a subject of a contract kung for the purpose
of public dominion is property held in trust for the interest
of overhauling the Hall of Justice but it cannot be
in the community. So even though the properties are
alienated, donated, leased, sold or mortgaged
owned by the State or the LGU, it doesn’t really belong to
2. It cannot be acquired by prescription – no matter
the state in the sense that the people have no business
how long you occupy the government land, you
insofar as the property is concerned.
can never own it (like you have a house in a
timberland, you can never acquire it by
According to Paras, property of public dominion is property
prescription)
owned by the State in the sense that it has control and
3. It cannot be registered under the Land
administration… but also owned by the public in general. If
Registration Law
the property is owned by the state, then it follows that it is
4. It cannot be attached or levied upon by execution
owned by the people but of course, it is regulated by the
5. It cannot be burdened by voluntary easements
particular public entity that owns it (referring to state).
We will discuss the cases in Article 420 muna, let us go to
Par. 1: Those intended for public use, such as roads, canals,
Articles 421 and 422 kay interrelated sila.
rivers, torrents, ports and bridges constructed by the State,
banks, shores, roadsteads, and others of similar character In your book, there is a classification of lands. Property of
public dominion is different from the lands of the public
domain. When you talk about public dominion, we refer to
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11
the property for public use, for public service and for the
PDFA vs. CA: Included in the term “ports” are fish ports
development of national wealth.
that are constructed by the state even if the money came
from foreign sources. Ang important is that they are
Lands of the public domain refer to lands not owned by
constructed by the state. Again, the property of public
public individuals. These are the lands that are owned by
dominion are not subject to taxes and cannot be sold –
the state.
whether privately or publicly.
1. Agricultural land – Could either be property of
public dominion or patrimonial property of the
June 18, 2014
state under Article 421; it really depends on the
classification of the agricultural land of the state
Continuation of CASES
2. Forest or Timberland – Refers to natural forests; it
cannot be transferred or alienated to private
Republic vs. CA & Morato: The boundary of the property is
individuals or entities; this property falls under
up to here (draws something on the board)… The water
development for national wealth
moves during high tide and low tide. Shores (foreshore
3. Mineral lands – Also falls under property for the
lands), under Article 420, are considered as property of
development of national wealth; they cannot be
public dominion. Don’t forget that the body of water
alienated or transferred to private entities but they
involved here is the sea. And foreshore land has been
can be the subject of agreements
defined as that part of (the land) which is between high and
4. National Parks -‐ Also falls under property for the
low water and left dry by the flux and reflux of the tides.
development of national wealth
The SC said that when the sea moved towards the estate
Art. 421. All other property of the State, which is not of the and the tide invaded it, the invaded property became
character stated in the preceding article, is patrimonial foreshore land and passed to the realm of the public
property. (340a) domain.
We are not saying “not enumerated in Art. 420” but “not of Republic vs. Lat Vda. Del Castillo: Lots 1 and 2 have always
the character stated in Art. 420.” If the property is not for been considered as part of the foreshore lands of Taal Lake.
public use, public service or development of national There is a discussion here on accretion. Remember this:
wealth, then it is patrimonial property. Lakeshore land or lands adjacent to the lake, like the lands
in question must be differentiated from foreshore land or
Art. 422. Property of public dominion, when no longer that part of the land adjacent to the sea which is
intended for public use or for public service, shall form alternately covered and left dry by the ordinary flow of
part of the patrimonial property of the State. (341a) the tides. Pag-‐sea, foreshore. Pag-‐lake, lakeshore.
Such distinction draws importance from the fact that
If a particular property for public service is no longer used accretions on the bank of a lake, like Laguna de Bay, belong
for public service, is it automatically patrimonial property of to the owners of the estate to which they have been while
the state? accretion on a sea bank still belongs to the public domain,
Yes, that is provided in Article 422 but we will see if it is and is not available for private ownership until formally
entirely true. declared by the government to be no longer needed for
public use. Does this distinction matter? In this case, the SC
CASES said that NO because in this case, there is no accretion. So
the properties or boundaries remained the same. I want
MIAA vs. CA: It’s very clear that the term “ports” include you to be able to take note of the terms. Don’t mess up
“airports” and all the airport buildings, runways, etc. You your terms (re: lakeshore or foreshore lands.) Remember
can also conclude from this case that another characteristic ha, whether it’s lakeshore or foreshore, it’s part of the
of a property of public dominion is that it is not subject to property of public dominion.
tax. No need to pay real property taxes for the land and
buildings. This case was also reiterated in another MIAA Morandarte & Febrera vs. CA: We have this parcel of land
case involving the city of Pasay whereby the SC said that owned by M and it’s adjacent to the river. Suddenly, the
airport is included in the enumeration under Article 420. river changed its course and now occupies the property of
M. So, the river now is considered a property of public
dominion under Article 420. So it can be reverted back to
the state. In this case, the title will not nullified. The river
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12
bed in this case now belongs to M who owns the property

law enacted by the Congress, then wala silang magawa. If
occupied by the new river bed (Article 461).
it’s only the executive branch who initiates the conversion
Is it possible to have property of public dominion inside
of the property to patrimonial property so that it can be
one’s private property? Yes. The Register of Deeds will just
sold, then it’s not enough.
have to adjust the boundaries of the land, removing that
portion of the property of the public dominion.
Conclusion from Cebu Oxygen, International Hardwood
and Laurel cases: In Article 422, which provides that all
Villarico vs. Sarmiento: Very simple. This case illustrates the
those which do not have the characteristics of property of
features of characteristics of the property of the public
public dominion are patrimonial property of the state, the
dominion. Obviously, the subject property here is a strip of
conversion is not automatic. In order to be properly
land belonging to the government and the government
converted to patrimonial property, there must be a
constructed a walk way with a stairway. Can he claim that it
legislative act of concurrence.
is his right of way? The answer is no because it cannot be
burdened by any voluntary easement being a property of
LBP vs. Cacayuran: In one old case, it was held that: A
public dominion. The SC said “In fact, it is used by the public
public plaza, a public market or anything built by the
by mere tolerance of the government.” So he cannot
government is considered property of the public dominion.
appropriate it for himself.
Therefore, it cannot be the subject of contracts. It cannot
be used as collateral to get a loan from a bank. The mayor
Domalsin vs. Villarico: The SC ruled here that the parties
entered into a contract leasing the portions of public plaza
cannot appropriate for themselves the part of the Kennon
to certain individuals. The SC said that such is not allowed.
Road they are fighting over.
In the LBP case, we have the same thing here. The city
mayor cannot enter into a contract with a bank using the
Cebu Oxygen vs. Bercilles: The conversion from property of
public plaza as collateral. A local government unit can
public dominion to patrimonial property is not automatic. In actually convert a property from public dominion to
this case, the property involved is a city road so it is a
patrimonial property but there must be an ordinance
property for public use but it was already abandoned and it (which is equivalent to a law). A resolution is not enough.
was declared by the City Council as abandoned. Now, the
mayor wants to sell it. Although it’s not expressly provided
June 19, 2014
in the ordinance that the said property is converted to
patrimonial property of the state… the SC said na no need
CASES
to make express declaration.
The fact that it was declared abandoned and the mayor
Dream Village vs. BCDA: Patrimonial property of the state
given an authority to sell the property is sufficient to
may be acquired by private individuals because it is owned
convert it to patrimonial property. Cebu Oxygen talks about
by the state in its own private capacity. One of the
the properties of local government units.
characteristics of a patrimonial property is that it can be
International Hardwood vs. UP: This case involves a forest
acquired through its proprietary function.
land which was transferred to UP through a special law.
The subject property here is still a property of public
Was this property converted as a patrimonial property of
dominion because it has not yet been converted by any
the state? It was not answered in this case. The only thing
legislative or executive component into patrimonial
that the SC said was: “UP, now as the owner of a portion of
property. The prescriptive period commences to run only
the forest land, has a full control to enter into contracts
when the property has been declared as patrimonial.
involving the property.” In other words, some of the
Also cited here is Section 14-‐2 of PD1 1529 (Land
characteristics were taken away. Is it a patrimonial
Registration Law). It is provided that before acquisitive
property? It was not answered, what’s important is that it is
prescription can commence, the property sought to be
owned by the state. So just take the case on its face value.
registered must not only be classified as alienable and
What I want to point out here is: A law enacted by
disposable. It must also be expressly declared by the state
Congress is enough. Whatever the law says, it is the law.
that it is no longer intended for public service or
When the law says that UP is already the owner, then it can
development of national wealth or that that the property is
freely enter into contracts. There is nothing we can do
converted to patrimonial property.
unless the law is considered as unconstitutional.
Chavez vs. PEA: Once there is reclamation, what kind of
Laurel vs. Garcia: Even though the executive branch of the property is the reclaimed area? Automatically, once there is
government wants to sell the property… since there is no reclamation of foreshore or submerged areas, the
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reclaimed area is automatically property of public

officially classifying these reclaimed lands as alienable and
dominion. Can this property be converted into patrimonial
disposable and open to disposition and concession.
property? Yes, but there has to be a law.
Therefore, these reclaimed lands are property of public
Just take note that there is again a requirement of
dominion, then all the characteristics of property of the
legislative and executive concurrence.
public dominion apply to them. It is not enough for the
Let us say it is Amari, a private corporation, which reclaimed
President to be the one to alienate or sell the property.
the area, can the areas reclaimed areas be considered
Again, there must be a legislative and executive
private property or patrimonial property? No. It doesn’t
concurrence.
matter who does the reclamation. Anything reclaimed
from the sea is property of public dominion.
Art. 423. The property of provinces, cities, and
Can the foreshore areas be converted to patrimonial
municipalities is divided into property for public use and
property? When it comes to foreshore, even without
patrimonial property. (343)
reclamation, the foreshore land can be converted to
patrimonial property of the state.
Once it is converted to patrimonial property, it can already According to Article 423, they are classified into:
be alienated. What if Amari reclaims the area? Will it revert 1. Property for public use
back to the property of public dominion? 2. Patrimonial property
Even though it is foreshore land, as long as it is converted
to patrimonial property and eventually alienated, it Does that mean that there are no properties for public
becomes private property. We will see later that the owner service or development of natural wealth? If the property is
has the right to do whatever with his property. Once it is for development of the natural wealth, then it belongs to
converted to private property and reclaimed, it remains to the state and not to the provinces, cities or municipalities.
be private property. There’s no LGU property for the development of national
Can submerged areas be reclassified and converted to wealth. The enumeration under this article is not exclusive.
patrimonial property of the state? No. For submerged
areas, there can be no reclassification or conversion to Art. 424. Property for public use, in the provinces, cities,
patrimonial property. It has to be reclaimed first. Therefore, and municipalities, consist of the provincial roads, city
submerged areas that are reclaimed will always be streets, municipal streets, the squares, fountains, public
property of public dominion. waters, promenades, and public works for public service
Don’t forget the constitutional prohibition with respect to paid for by said provinces, cities, or municipalities.
corporations. Here, in the case, the SC said that if there is All other property possessed by any of them is patrimonial
successful reclassification and conversion of property of and shall be governed by this Code, without prejudice to
public dominion to patrimonial property, this cannot be the provisions of special laws. (344a)
sold if the buyer is a private corporation. It can only be
leased to the corporation. If private individual, pwede i-‐sell This article provides for the properties of the LGU that are
but only if less than 3 hectares and subject to other laws. intended for public use.
Only private individuals can purchase patrimonial property
of the state. In Davao city, we have the city streets and the national
We need to distinguish the different treatment when it roads. The national roads are property of the state while
comes to foreshore and submerged lands. the city streets are property of the city.
Summary for submerged areas: First, reclaim and must be
classified as alienable and disposable. Then, must be open In one case, a person entered into a contract with DPWH
to disposition and must be declared no longer needed. for some work. It turned out that he was not paid. So he
Again, do not forget the legislative and executive went to the court and asked that the properties be
concurrence. attached. The court issued a writ of attachment. The SC
Again, remember this: Property of public dominion cannot said that the lower court was wrong in attaching the
be converted to patrimonial property of the state without bulldozers, equipment, etc. because those are property of
legislative and executive concurrence. public service.
Republic vs. City of Paranaque: The SC said that the mere In the case of Province of Zamboanga vs. City of
reclamation of these areas does not convert these Zamboanga, the SC said that under the law on municipal
inalienable resources of the state to alienable or disposable corporations and special law, properties for public services
property of the public domain. There must be a law are considered as properties of public dominion. In other
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14
words, even though Articles 423 and 424 mention only

property for public use, it also includes public service. The
Art. 428. The owner has the right to enjoy and dispose of a
law on municipal corporations prevail over Article 424
thing, without other limitations than those established by
because of the provision “without prejudice to the
law.
provisions of special laws.”
The owner has also a right of action against the holder and
possessor of the thing in order to recover it. (348a)
According to Paras, the properties of the Local Government
Units are also classified into:
What are the three basic rights of an owner?(red)
1. Those acquired with their own funds (either in
1. Right to enjoy
their private or corporate capacity) – under the
2. Right to dispose
ownership and control of the LGU
3. Right to recover
2. Those that are not acquired with their own funds –
under the control and supervision of the state;
Included in the right to enjoy are:
these properties are held by the LGU in trust for
1. Right to possess – jus possendi (the right to hold
the state for the benefit of the inhabitants
the thing wherein the thing is subject to the
control of the owner’s will)
Art. 425. Property of private ownership, besides the
patrimonial property of the State, provinces, cities, and 2. Right to use – jus utendi (right to use and right to
exclude any person from disposal thereof)
municipalities, consists of all property belonging to
private persons, either individually or collectively. (345a) 3. Right to use the fruits – jus fruendi (there are three
kinds of fruits: natural, industrial and civil)
We are done with this classification – private or public
Included in the right to dispose are:
property. We also have other classifications in the book.
1. Right to consume or destroy – if you have a thing
Just read lang, okay?
and you don’t like it anymore, you can destroy it or
thrown it away
The two main classifications of property are:
2. Right to alienate or encumber – encumber includes
1. Movable and immovable
the right to lease, donate, mortgage your property
2. Private property and property of the public
dominion
The owner also has the right to recover. He is given the
opportunity to recover. We will look at the ways to given to
Art. 426. Whenever by provision of the law, or an
the owner under the Civil Code.
individual declaration, the expression "immovable things
or property," or "movable things or property," is used, it
The three rights given to the owner are, according to Paras,
shall be deemed to include, respectively, the things
generally absolute. These rights are subject to certain
enumerated in Chapter 1 and Chapter 2.
limitations. It is very difficult to find absolute right in this
Whenever the word "muebles," or "furniture," is used
world. Every right has certain limitations.
alone, it shall not be deemed to include money, credits,
commercial securities, stocks and bonds, jewelry, scientific
There are certain limitations for the owner based on legal
or artistic collections, books, medals, arms, clothing,
maxims like the welfare of the people is the supreme law
horses or carriages and their accessories, grains, liquids
of the land. If you exercise your right and by doing so you
and merchandise, or other things which do not have as
affect the welfare of the general public, then you can be
their principal object the furnishing or ornamenting of a
hindered from enjoying your right. The moral doctrine or
building, except where from the context of the law, or the
maxim is also a limitation which says that use property so
individual declaration, the contrary clearly appears. (346a)
as not to impair the rights of others. An example of this is
you cannot use your videoke machine at 1am because you
Title II -‐ Ownership
may disturb your neighbors.
Art. 427. Ownership may be exercised over things or
rights. (n) There are four fundamental limitations on the rights of the
owner:
What can one own? Either things or rights. Under Article 1. Those imposed by law – the law itself limits one’s
ownership
428, there are three basic rights of an owner.
algene c.
15
(example: A has a parcel of land and it’s adjacent

usurpation of his property. (n)
to the highway. B has a property behind A who
does not have an access in the highway. We will
The first provision on recovery is under Article 429 which is
learn later that B can claim an easement for right
the doctrine of self-‐help. This is what you call “help
of way. While A has the right to the full ownership
yourself” in the sense that you do not need to undergo any
of his land, he is now obliged to share the lot with
legal proceeding. You, yourself, are permitted by law to
B for the right of way. So his right to enjoy the
protect the property.
property is limited by law – the legal easement on
the right of way.)
If you look at the provision, is it one that will help a person
2. Those imposed by the state
recover a property after it has been lost? No. Article 429 is a
a. power of taxation (example: A has a business.
provision which ensures that the owner has a right to
As an owner, he is entitled to the income
exclude anyone from enjoying or disposing of his
which are the fruits of the business but A is
property. In other words, under Article 429, his property
obliged to pay income taxes. Thus, A cannot
has not yet been taken away from him.
enjoy 100% of the income.)
b. power of eminent domain (example: A owns a
The situation here is that he may use force as may
parcel of land. The government exercises its
reasonably necessary to repel an actual or to prevent a
power of eminent domain and expropriates
threatened unlawful physical invasion or usurpation of his
your land. So your right to enjoy the property
property.
is now limited by the government.)
c. police power (example: As long as it is for the
An example of this is I can prevent anyone from taking this
general welfare, the state can destroy or take
(holding the item) thermos from me. If he slowly crawls to
your property. Only when the means
where I am seated to get the thermos, then I make pukpok
employed are reasonably necessary)
his head. Now, what if the person was able to successful
3. Those imposed by the owner on himself –
take my thermos? Can I throw this (holding the item) eraser
(example: A owns a building and leases a part of it
to him? The answer is yes, it is still included under Article
to B. In doing such, A limits his own right to use the
429.
entire building. Although he can enjoy the fruits or
income received but his right to use is limited by
Let’s analyse the provision. Who has the right under Article
himself as the owner.)
429? Take note, the person must be the owner or the lawful
4. Those imposed by the grantor – (example: Parents
possessor of the thing. In other words, Article 429 cannot
donate property to their children in advance to
be invoked by someone who is unlawfully possessing a
avoid paying high estate taxes but it has a
thing like a squatter.
provision that the civil fruits or income of the
property will belong to the parents. So in this case,
Let’s say, a squatter is occupying a parcel of land. Now this
the children are the owner of the property but his
owner goes to the place with his goons and nagbakbakan
right to enjoy the fruits is limited by the parents-‐
sila. Can the squatter invoke Article 429? No because the
grantor.)
right under Article 429 is available only to a lawful
possessor.
If one has a right, one also has a burden. So what is the
burden of the owner? Res perit domino – the owner bears
What is the right under Article 429? To exclude any person
the loss of the property owned by him.
from the enjoyment thereof.
Let’s now go to the actions to recover. The right to recover

When does the right to exclude any person exist? When
is one of the fundamental or basic rights of the owner. How
there is actual or threatened unlawful physical invasion of
can one recover his property?
the property.
Art. 429. The owner or lawful possessor of a thing has the What can the person do to exercise the right to exclude? He
right to exclude any person from the enjoyment and may exert force as may be reasonably necessary to repel or
disposal thereof. For this purpose, he may use such force prevent it. Not excessive force ha.
as may be reasonably necessary to repel or prevent an
actual or threatened unlawful physical invasion or
algene c.
16
Example: X borrowed a car from C and parked it from afar.

Example: If A is a squatter and occupying the
He went to Lachmi to buy something tapos he saw Y was
property of X. X is already impleading A to vacate
about to steal the car. So, under Article 429, X has the right
the property but A does not want to leave. So one
to prevent someone from stealing the car as long as the
day, X goes to you with his goons and forcibly
means resorted by X are reasonable. He may even chase Y
removed you through force, threat and
immediately if the latter runs.
intimidation. What can he do? He can file an action
for forcible entry because the only requirement is
What if X was not able to prevent Y so Y successfully took
that the plaintiff was originally in possession for
the car? After three days, he saw Y walking in San Pedro
whatever reason he was in possession and he was
Street. Can X exercise the right under article 429? The
deprived thereof by FISTS.
answer is no. Article 429 is available only if the unlawful
physical invasion of the property is actual or threatened.
X must file within one year from dispossession or
the time he was removed by means of force,
Why is the doctrine of self-‐help included in the Civil Code
threat or intimidation. If it was because of
when it is the state who has the obligation to protect its
strategy or intimidation, one year from the time
citizens? In actual, the ratio of a policeman and the citizens
of discovery of such fact.
is 1:100,000. The Civil Code is giving us the right to protect
our property.
What is involved here is the mere actual of
possession. So we are not talking of the right to
In the old case of People vs. Polinar, the SC said that for
possess. As long as someone removes the
one to be able to invoke or use Article 429 to protect one’s
occupant through FISTS, then he can be a
property, the attack against one’s property must be
defendant in a case for forcible entry.
coupled with an attack against the person for it to be
justified. Under this jurisprudence, if a person attempts to
If you are the plaintiff here, you are removed
get my thermos without harming me and I hurt him, then
through fists and there are two allegations that
I’m not justified in doing such.
you must include in your complaints:
BUT in People vs. Narvaez, 1983 case, the SC said that there a. You are in prior possession of the property
b. You are unlawfully deprived of such
is no need for one’s person to be attacked in order to
possession by another person through FISTS
protect one’s property. This provision is really for the
protection of one’s property. The only thing required is a
In case you didn’t file the case of forcible entry
threatened or actual unlawful physical invasion and
within one year, is that the end for you? No, you
usurpation of one’s property. There’s no need for an attack
still have other action. Take note, the person who
to one’s person to justify his acts in protecting his property.
may bring an action doesn’t have to be the owner
What if the owner can no longer use the doctrine of self-‐ or the lawful possessor… Ang important is that he
help because it has already been taken from him? This time, is the prior possessor – whether lawful or not.
you really have to recover your property. How do you do it?
You have to file the proper action in court. 2. Unlawful detainer – the action that must be
brought when the possession by a landlord,
For personal property or movables, the action to file is vendor, vendee or other person of any land or
replevin – the action to recover personal property. Only building is being unlawfully withheld after the
one action for personal property. expiration or termination of the right to hold
possession by virtue of any contract, express or
How about recovery for real property? It depends on the implied.
situation.
The classic example here is a lease contract.
1. Forcible entry – it is a summary action to recover X is an owner of an apartment unit and Y is the
material or actual possession of real property renter. According to the lease contract, the lease
when the person in original possession was would expire on June 6, 2014. After the expiration
deprived thereof by force, intimidation, stealth, of the contract, X informs Y to vacate the building
threat or strategy (FISTS) but Y does not want to vacate. Originally, his
possession was lawful by virtue of a contract but
algene c.
17
since the contract has expired, his right to hold
algene c.
18
possession has terminated. Then, he can now be

If publiciana talks about the right to possess,
sued for unlawful detainer. He is now unlawfully
reinvindicatoria talks about recovery of
detaining the apartment unit from the landlord X.
ownership.
Just like forcible entry, the prescriptive period is
Example: Without your knowledge, someone
one year. When you go to your special civil action,
sells your property and the title is transferred
it is one year from the demand to vacate. The
to another person. So you can file accion
unlawful withholding only becomes legally
reinvindicatoria.
unlawful once there is a demand to vacate.
Those are the actions available to recover one’s property. Let’s just
The issue again is possession de facto or material
go to the distinction between the doctrine of self-‐ help from forcible
possession of the person detaining one’s property.
entry and unlawful detainer.
What are the facts that must be stated in a case for
Doctrine of Forcible Unlawful
unlawful detainer?
Self-‐Help Entry Detainer
a. That the defendant had a previous lawful
Who has The owner or Any person The lessor,
possession of the property
the right? the lawful who is vendee,
b. That the defendant is now unlawfully
possessor of deprived of vendor or
detaining the property from the plaintiff
the thing possession person
Another name for unlawful detainer is accion
through against
interdictal.
FISTS (so he whom any
was the possession
When we talk about these actions of recovery, we
previous of land or
are not talking about the enumerations under
personal building is
Article 415 but those properties but that are
possessor) unlawfully
immovable by nature in the sense that they cannot
withheld
be moved from place to place – like land and
building. Property Applies to Applies only Applies only
involved. either real or to real to real
3. Accion publiciana – an action to establish who has personal property property
property
the better right to possess; we are not only talking
about possession de facto but also the right to What is/are To use force To file a To file a case
possession (de jure). the right/s? reasonably case against against the
necessary to the person person
The prescriptive period is ten years. The two kinds repel or who unlawfully
are: prevent unlawfully withholding
1. The entry was not obtained through FISTS (the actual or deprived the property
possessor who was dispossessed cannot file threatened him of
for an action of forcible entry if his unlawful possession
dispossession was not caused by FISTS so physical
what he can file is accion publiciana.) invasion or
2. That where the one year period for bringing usurpation of
forcible entry or unlawful detainer has already his property
expired, the action may still be brought to When does When there is After he is After
court as accion publiciana the right threatened or unlawfully possession
(the only difference is that in forcible entry, exist? unlawful deprived of by another
the process or procedure is faster while in physical possession becomes
accion publiciana is under the regular courts.) invasion or through unlawful
usurpation of FISTS (while the
4. Accion Reivindicatoria – an action to recover his property possession
ownership over real property (Paras said is still lawful,
that there are no right to
two kinds of file unlawful
algene c.
19
invasion : detainer) investigation before it disconnected the services, it was

mere only done a few hours before the disconnection was
disturbance effected. So the services were cut at midnight, there’s an
or real issue here of due process. In this case, the employees of
dispossession; Act Theater already tampered the meter so there is no
both are more risk on the part of MWSS. In other words, the water
practically has already been stolen. The employees were not
covered but threatening or actually stealing the water. The act was
the already consummated, so Article 429 is not the proper
dispossession remedy.
is still going
on) UPCB vs. BASCO: For the said purpose, banks may impose
When does When the One year One year reasonable conditions or limitations to access by non-‐
the right invasion or after the after employees to its premises and records, such as the
end? usurpation of plaintiff has possession exclusion of non-‐employees from the working areas for
the property been has become employees.
has been unlawfully unlawful Did UCPB validly use Article 429 when Ongsiapco (VP of the
consummated deprived of bank) wrote the memorandum which read “Please be
(in the sense possession advised that Mr. Ruben E. Basco was terminated for a cause
na wala na, by the Bank on 19 June 1992. He filed charges against the
hindi mo na bank and the case is still on-‐going. In view of this, he should
mahabol ang not be allowed access to all bank premises.”? Was that a
person) proper invocation of Article 429?
What is the Any Accion Accion Yes. Article 429 can be used by UPCB to prevent an
remedy applicable Publiciana Publiciana individual from an unlawful physical usurpation or invasion
when the action for of their property by preventing the public from entering
right ends recovery certain areas. But the memo said that it prohibits entering
all bank areas.
June 23, 2014 What about the areas open to depositors or to account
holders? Is he not allowed to enter that particular area? The
CASES SC said that it cannot be possible for it is excessive and no
longer reasonable. It said that Basco as a depositor must be
Camarines Norte vs. Quezon: Obviously, the first requisite allowed to enter the premises that is made available to
on who can exercise this right of Article 429 is only the depositors. The said Memorandum, as worded, violates
lawful owner or the lawful possessor, is not present. It’s the right of the respondent as a stockholder or a depositor
very clear that the particular area involved in this case of the petitioner bank, for being capricious and arbitrary.
belongs to province of Camarines and not Quezon. So Did UCPB properly invoke Article 429 when Basco was
Quezon city officials no longer have a right to reasonably prevented from entering the ATM area? This time it is
exclude other persons from enjoyment of the property. reasonable. Preventing certain individuals from entering
Although not mentioned in the case, there was no unlawful restricted areas is reasonably necessary to prevent any
usurpation made by the Camarines officials. It was the actual or threatened unlawful physical invasion or
DENR who placed the monuments there. Quezon cited the usurpation of the bank’s property.
wrong provision.
Villafuerte vs. CA: Article 429 here is not the proper
MWSS vs. Act Theater: The force used by MWSS was not remedy. They cannot fence the property because the entry
reasonably necessary. The general principles under Article of Villafuerte here was not unlawful. There was no actual or
19 of the Civil Code were not taken into considerations threatened unlawful physical usurpation or invasion of their
when MWSS arbitrarily cut off the water. It was not Act property. What happened was that the entry was lawful by
Theater that tampered the meter but its employees. virtue of the contract and the contract expired.
The SC said that before you can avail of the doctrine of Therefore, from the time of the expiration, there was
self-‐help, you must follow the basic principles of law. The already an unlawful or illegal possession of Villafuerte.
SC said that while it is true that MWSS sent a notice of What they should have done is to send a notice to vacate
and file the proper action for unlawful detainer.
algene c.
20
According to Article 536, He who believes that he has an

thereon yet. In order to acquire a legal easement of right of
action or a right to deprive another of the holding of a
way, one must go to court and present all the requisites
thing, must invoke the aid of the competent court, if the
necessary for the establishment of easement.
holder should refuse to deliver the thing.
In this case, there was none yet. Maybe later. If the court
Petitioners’ arbitrary conduct of fencing their properties
rules that the other party is entitled to the easement of
under the claim that they own the same brazenly violates
right of way, then Santos and others may be compelled to
the law and circumvents the proper procedure which
breakdown the wall.
should be obtained before the court.
In Custodio case, there is also another passage and one of
the requisites of legal easement of right of way under
PB Com vs. Trazo: The SC emphasized on the right to
Article 649 is that there must be no any other way. But our
exclude. In other words, even though the owner of the
concern here is that yes, they can enclose the property
account did not do anything… he still has the right to
even if that area includes parts used by others. Later, we
exclude any person from the enjoyment or disposal of her
will understand how easements are established.
money. The fact that the money was already deposited on
her account, that’s already her money. Nobody can just get
Aneco vs. Landex: In a subdivision plan, road lots are
funds from any person’s account.
respected in the sense that nobody can build there. When
Why the SC used Article 429, I really don’t know. It’s not a
the property was sold to Aneco and the other to Landex,
complete application because Article 429 is the doctrine of
Landex closed a certain area so Aneco could no longer use
self-‐help. The SC used only half of the provision.
the road lot to exit. So Aneco said that Landex has no right
to close the road lot because it was a road lot.
Let’s go to another right available to an owner. This is
Is Aneco correct? The SC said no because you have to look
included in the right to enjoy.
at the reasons why Fernando sold the property. They
decided to abandon subdivision, they no longer want to
Art. 430. Every owner may enclose or fence his land or
develop it. The lot involved here is a private lot. Indeed if
tenements by means of walls, ditches, live or dead hedges,
that particular road block was included in the purchase
or by any other means without detriment to servitudes
made by Landex, then Landex has the right to enclose.
constituted thereon. (388)
Heirs of Limense vs. De Ramos: Joaquin Limense, as the
You can enclose or fence your property so may enjoy it
registered owner of Lot 12-‐C, and his successors-‐in-‐interest,
better or prevent others from using it, possessing it or
may enclose or fence his land or tenements by means of
using the fruits.
walls, ditches, live or dead hedges, or by any other means
without detriment to servitudes constituted thereon.
Reminder from ma’am: Please take note of the provisions. Be
However, although the owner of the property has the right
very particular of your codal.
to enclose or fence his property, he must respect
servitudes constituted thereon. WON the respondents are
If A owns a parcel of land, A has the right to enclose it. But
entitled to an easement of right of way... we will answer
what if there is an easement for the right of way on his
that in our future topics.
property in favor of B, a neighbour who does not have an
access to the public highway, is A under Article 430 entitled
June 24, 2014
to block the passage of B?
NO. Because there is an exception in Article 430 – “without
Art. 431. The owner of a thing cannot make use thereof in
detriment to the servitude constituted thereon.”
such manner as to injure the rights of a third person. (n)
CASES
If you own a car, you cannot run over people. As simple as
Custodio vs. CA: The passage way is not a public passage that. This is a very short and simple article. According to
way. It is a private property owned by those people. your book, Article 431 is one of the basis of police power.
Hence, under Article 430, Santos and others have the right
to enclose their property. This article is a limitation on the right of an owner to enjoy
What about the provision “without detriment to the the property. In using your property, make sure you do not
servitude constituted thereon”? At the time they enclosed injure the rights of third persons.
their properties, there were no servitudes constituted
algene c.
21
Let’s go to the next important provision which we call the another

state of necessity in the Civil Code. WON liability No as long as the Yes. The owner
exists? person uses may demand
Art. 432. The owner of a thing has no right to prohibit the reasonable force from the person
interference of another with the same, if the interference benefited
is necessary to avert an imminent danger and the indemnity for the
threatened damage, compared to the damage arising to damage caused
the owner from the interference, is much greater. The to him
owner may demand from the person benefited indemnity
for the damage to him. (n) What if the person who was in an allegedly state of
necessity made a mistake? He actually interfered with the
What do you think this provision is all about? Does it pertain property of another and it turned out that he was not in a
to a right or not? Limitation on the right to enjoy. The state of necessity.
owner has no right to prohibit a person to use or enjoy his According to Tolentino, the right to act in a state of
property if that person is in a state of necessity but there necessity depends on the objective existence of the
are requisites. danger, not subjective, with the requisites provided by
law.
The requisites are in Article 432:
1. interference is necessary to avert an imminent So if one person believes himself to be in a state of
danger necessity or used means in excess of the requirements of
2. threatened damage, compared to the damage the situation, his acts would be illicit and the owner of the
arising to the owner from the interference, is much property can properly use the defense and force
greater authorized under Article 429.
What happens to the owner of the thing whose property Let’s say we have this person jogging along a subdivision
may have been destroyed because of the interference or and he hears something behind him. He feels like he is
use by another? He can demand indemnity from the person being chased by a murderer so he jumps into the property
benefited. of another and destroys the beautiful landscape in order to
avoid the person behind him. It turned out that the person
The classic example used is fire on row of shanties. One of was not a murderer but was only a jogger. So his acts of
the houses may be destroyed to prevent the house from destroying the landscape of the property of another are
burning or stop the spreading of the fire. The owners of the illicit. If his acts are illicit, then the owner of the property
shanties cannot interfere from the acts of the firemen if the may properly use the defense and force authorized under
latter deem it necessary to destroy the house/s. The Article 429.
persons benefited must compensate those who suffered
the loss. But of course, don’t forget the two requisites Of course, the owner can use defense and force because
under Article 432 – necessity of the interference and that for him, there was a person who illegally and unlawfully
the threatened damage is greater. entered his property. He could throw a stone. If that guy
was being really chased by the murderer and the owner
You have to distinguish state of necessity from the doctrine of uses force, then the owner would be liable because Article
self-‐help. (Article 432 vs. Article 429) According to our legal 432 is superior than Article 420.
luminaries, Article 432 is superior to Article 429.
How about negligence? Here, there is no mistake. The
Doctrine of Self-‐ State of person was really in a state of necessity but he turned out
Help (Art. 429) Necessity (Art. to be in that state because of his own stupidity. The law
432) does require a person acting under a state of necessity be
Who has the The owner or The person who is free from negligence in the creation of such situation. In
right? lawful possessor in imminent other words, it’s okay if it is one’s own negligence that
of the thing danger places him in a state of necessity provided that he really is
What is the right? To use reasonable To interfere with in a state of necessity.
force something
belonging to
algene c.
22
Example: If a person picked up an unknown object in the

Art. 434. In an action to recover, the property must be
drug store and ate it but it turned out to be poison… Let us
identified, and the plaintiff must rely on the strength of his
say he is already at the verge of death then he can already
title and not on the weakness of the defendant's claim. (n)
grab the proper antidote (side comment ni atty. s: hindi ko
alam paano niya malocate and paano niya alam na yun yung
Article 434 is the continuation. It is what the real owner
antidote kaya weird). According to Tolentino, he can drink
should do. He should file the proper action to recover his
any antidote he finds in the store even without the consent
property. The property that the owner wants to recover
of the owner. Maybe he is trying to be funny but this is a
must be properly identified.
very absurd situation. I hope you understand the point of
Requisites in an action to recover:
Tolentino who is a legal luminary in Civil Law.
1. Property must be identified
2. Plaintiff must rely on the strength of his own title
Art. 433. Actual possession under claim of ownership
and not the weakness of the defendant’s title
raises disputable presumption of ownership. The true
owner must resort to judicial process for the recovery of
Who is the plaintiff? The real owner of the property.
the property. (n)
Who is the defendant? The possessor of the property
because of the disputable presumption.
Article 433 talks about a disputable presumption. Is this
thermos mine? Yes? How did you know? Okay. There is a
The actions to be filed by the owner are under civil
disputable presumption that this thing is mine because I’m
procedure. The proof required from the plaintiff is
in actual possession of it under the claim of ownership.
preponderance of evidence, meaning that his evidence
must be greater than that of the defendant.
I act like I’m an owner of this thing so there is a disputable
presumption that I am the owner. If I’m really the owner, I
What can he do to prove his ownership? Witness, receipts,
do not need to carry the receipt in my wallet to show
testimony of friends, etc.
everyone that I own it because nga there is a disputable
presumption provided by law.
CASE:
But what if X is the real owner of the thermos? According to
VSD Realty vs. Uniwide: VSD’s situation is inferior to that of
Article 433, “the owner must resort to judicial process for
Uniwide (the lessor). Uniwide was in actual possession
the recovery of the property.” Meaning X cannot easily say
under claim of ownership so there is already a disputable
“that’s mine! it was given to me by my friend. give it to
presumption of ownership. VSD, who claims to be the true
me.” He cannot do that because under Article 433 there is a
owner of the property, had to present evidence as required
disputable presumption that I’m the owner. X must rebut
by Article 434. First, identification of the property by
this presumption by proving his ownership. If he says that it
presenting title.
is given to him by someone, then he can ask that donor to
In this case, the SC said that VSD was able to comply with
be a witness and ask him to show the receipts. That is how
the two requisites under Article 434. It relied to the
complicated it is so there’s a need to file an action for
strength of its title by presenting the surveys, technical
recovery. All the actions we have discussed earlier are
description, title etc. as compared to the evidences
based on Article 433.
presented by the other side. Ang important is that the
requisites were complied with.
When one in possession, it is not for the real owner to
extra-‐judicially recover ownership. He must go to court. So
Art. 435. No person shall be deprived of his property
in my example, the proper action is accion reinvindicatoria.
except by competent authority and for public use and
always upon payment of just compensation.
Article 433 applies to both movables and immovable so we
Should this requirement be not first complied with, the
are not distinguishing anymore.
courts shall protect and, in a proper case, restore the
owner in his possession. (349a)
These are the requirements to raise a disputable
presumption of ownership:
1. Actual possession Article 435 is eminent domain. We have this provision in the
2. Claim of ownership Civil Code but you already exhaustively discussed this under
your Constitution, Bill of Rights. There is a very long
algene c.
23
discussion in the book of Paras but we will not go through

it.
Art. 437. The owner of a parcel of land is the owner of its
surface and of everything under it, and he can construct
The requisites are found in Article 435. The requisites under
thereon any works or make any plantations and
the Civil Code are not complete. You have four requisites
excavations which he may deem proper, without
under the Constitution. Just take note of the requisites.
detriment to servitudes and subject to special laws and
1. Taking by competent authority
ordinances. He cannot complain of the reasonable
2. Observance of due process of law
requirements of aerial navigation. (350a)
3. Taking for public use
4. Payment of just compensation
Article 437 talks about ownership of land. If you own a
parcel of land, you own the surface and everything under it
Let us look at the second part. What if any of the requisite
– the stones, the rock, the soil or whatever you find
is not complied with? “The courts shall protect and, in a
underground.
proper case, restore the owner in his possession.” <-‐ This
particular provision is not saying that if one requisite is not *Atty. Suarez talked about the Japanese tunnel found under
complied with, the owner can recover his property. This her grandmother’s land. And she said that it was her
provision is saying that the courts shall protect the owner. grandmother who owned it even if it was built by the
Japanese*
What if the missing requisite is that there was no payment
of just compensation? Then the court should ensure that What are the rights of the owner of the land? He can
proper just compensation is made. What if other requisites construct thereon any works or make any plantations and
ang lacking? Well it really depends on what the court will excavations which he may deem proper.
say. There are times when the owner may be restored in his
possession but not all the time. Just remember your cases He can plant anything he wants and he can go as high as he
on eminent domain. wants or as low as he wants.
It says that “without detriment to servitudes and subject to

Again, this is another limitation on the right of an owner. special laws and ordinances.” So there is a limitation of the
Definitely, the state can deprive a person a right to enjoy owner’s right when there are special laws or ordinances.
his property but there must be compliance with the Example: there is a limit on the height of the building.
requisites under the Constitution, jurisprudence and the
law. The owner cannot also complain of the reasonable
requirements of aerial navigation. If your property is on the
Art. 436. When any property is condemned or seized by
flight path like the subdivisions in Lanang, these
competent authority in the interest of health, safety or
subdivisions are allowed to build only at a certain height.
security, the owner thereof shall not be entitled to
They cannot go as high as they can. I am not saying that this
compensation, unless he can show that such
is the law about the height and the depth. Okay? Because
condemnation or seizure is unjustified. (n)
we are only talking about the Civil Code, hindi kasali ang
Building Code which is outside our subject.
This is another inherent power of the state and another
limitation of the right of the owner.
Pursuant to the Regalian Doctrine, mines recovered under
his land belong to the public domain. We will distinguish
There are two requisites:
mines and treasures later.
1. Lawful subject – public safety, public welfare
2. Lawful means
CASE
If one’s property is taken or destroyed in the exercise of the

NPV vs. IBRAHIM: Presumably, the right of the land owner
police power of the state, there is no need for payment of
extends up to such height or depth where it is possible for
just compensation. There is an exception: If it can be
him to obtain some benefit or enjoyment and it is
shown that such condemnation or seizure is unjustified.
extinguished beyond such limit as there would no more be
right protected by law.
Take note of the exception.
algene c.
24
So even when NAPOCOR built the tunnels 115 meters

state will become the owner and the property will
below, the SC said that it still belongs to Ibrahim. Ibrahim
be converted to patrimonial property of the state)
was not permitted to construct his well because of the
existence of the NAPOCOR’s tunnels.
June 25, 2014
Can Ibrahim recover? The SC said no. He can ask for just
compensation nalang.
Note: I don’t have a recording for this day (1 hour lecture).
(Will update the transcription as soon as I get a copy.)
Before we go to Aritcle 438, let’s discuss first Article 439.
Art. 438. Hidden treasure belongs to the owner of the
Art. 439. By treasure is understood, for legal purposes, any land, building, or other property on which it is found.
hidden and unknown deposit of money, jewelry, or other Nevertheless, when the discovery is made on the property
precious objects, the lawful ownership of which does not of another, or of the State or any of its subdivisions, and
appear. (352) by chance, one-‐half thereof shall be allowed to the finder.
If the finder is a trespasser, he shall not be entitled to any
According to this article, a hidden treasure is defined as any share of the treasure.
hidden and unknown deposit of money, jewelry, or other If the things found be of interest to science of the arts, the
precious objects, the lawful ownership of which does not State may acquire them at their just price, which shall be
appear. So those are the three elements. divided in conformity with the rule stated. (351a)
1. Hidden and unknown – not in the plain view, you
have to dig up or look for it; unknown meaning you
Art. 439. By treasure is understood, for legal purposes, any
don’t know the owner so if you dug up and found a
hidden and unknown deposit of money, jewelry, or other
box saying that it belongs to X then it is not a
precious objects, the lawful ownership of which does not
treasure; it may be hidden but it is not unknown
appear. (352)
2. Consists of money, jewelry and other precious
objects – hidden treasure consists of these things
Art. 440. The ownership of property gives the right by
only; mines are not considered treasures (they are
accession to everything which is produced thereby, or
immovable under par. 9 of Article 415)
which is incorporated or attached thereto, either naturally
3. Their lawful ownership does not appear – so we
or artificially. (353)
don’t know who the owner is
According to Paras, what are included in hidden treasure in Art. 441. To the owner belongs:
the same category as money, jewelry, etc.: (1) The natural fruits;
 Gold bars -‐ yung bars talaga ha, hindi yung (2) The industrial fruits;
minimina (3) The civil fruits. (354)
 Things found in tomb -‐ particularly those in the
interest of the science and the arts like antiques or Art. 442. Natural fruits are the spontaneous products of
set of plates or silverwares; tomb is nameless the soil, and the young and other products of animals.
 Treasure hidden by the owner on the land Industrial fruits are those produced by lands of any kind
abandoned by him through cultivation or labor.
Civil fruits are the rents of buildings, the price of leases of
What are not included? lands and other property and the amount of perpetual or
 Property embedded in or part of the soil -‐under the life annuities or other similar income. (355a)
Regalian Doctrine, they belong to the state.
 Immovable objects like the tomb Art. 443. He who receives the fruits has the obligation to
 Precious objects deliberately hidden by the owner pay the expenses made by a third person in their
– as long as the owner can prove his ownership production, gathering, and preservation. (356)
 When the owner of the thing is already dead – you
cannot say that patay na ang may-‐ari so yung June 26, 2014
hidden thing niya is yours na (if the person dies,
the property belongs to his heirs. if he does not Yesterday, we discussed Article 443. The situation in the
have heirs, that doesn’t mean that you can already said article is that somebody planted on the land of another
own it because under the law on succession, the in bad faith. Under the principle of accession, the owner of
algene c.
25
the land can appropriate the fruits but he must pay first for the lansones trees, you wait for
expenses of building, planting and sowing. it to mature and bear fruits)
Gives rise to a permanent Each deposit of seed gives
Art. 444. Only such as are manifest or born are considered plant which in turn produces rise merely to a single crop
as natural or industrial fruits. the fruit. or harvest.
With respect to animals, it is sufficient that they are in the Without replanting, the Regular planting or sowing
womb of the mother, although unborn. (357) plants will continue to bear has to be made.
fruits.
In your book, there are rules. The general rule is that they
are considered fruits when they are manifest of born. But
You have to know the distinctions between the two
what do you mean by manifest or born?
because when we reach the succeeding provisions, the
treatments are different.
The author differentiated the annual crops from perennial
crops. It’s very easy.
Article 445 talks about the general rule that if anything is on
a. Annual crops – rice, sugar cane, corn; manifest
the land of another, whether it’s an improvement, a tree or
or born the moment their seedlings appear to
a plant, such belongs to the owner of land.
the ground (example: palay)
b. Perennial crops – those that bear fruits yearly,
Art. 446. All works, sowing, and planting are presumed
you don’t have to plant na; fruits in the trees;
made by the owner and at his expense, unless the contrary
manifest or born the moment the fruits are
is proved. (359)
seen or when the trees start to flower
In animals, it doesn’t matter as long as there is something Now, Article 446 presumes that all those works, plantings
inside the womb of the mother. What is inside is a fruit, or sowings were made by the owner and at his expense. So
whether or not the mother gives birth. that is different from “belonging to the owner” under
Article 445. Article 446 answers the questions “Sino ba ang
Let’s go to a more specific topic. The right to accession nagtanim? Who built the improvements? Who planted the
applies to immovables. trees? Who sowed the palay?”
Art. 445. Whatever is built, planted or sown on the land of Article 445 talks about ownership while Article 446 talks
another and the improvements or repairs made thereon, about who planted, sowed or built and who incurred
belong to the owner of the land, subject to the provisions expenses for the BPS. There are two presumptions under
of the following articles. (358) Article 446.
1. The works, sowing and planting were made by the
The general rule is that anything planted, built or sown by X owner.
belongs to X, even the improvements or repairs made 2. Such were made at the owner’s expense.
thereon.
The principle of accession is automatic. It belongs to the
Article 445 is accession continua/accession industrial. owner. If you see a tree on the land of X, it follows that
Meaning, there is something done or a human intervention. automatically he owns the tree. Did he own the tree? Did he
There is something built, planted or sowed. We are no incur the expenses in planting the tree? Yes, because that is
longer talking about the spontaneous product of the soil the presumption. It can be rebutted by Mr. A if he says that
here but industrial fruits. “I was the one who planted the tree.”
Example: You build a bahay kubo (improvement) on the Remember, when another person built, planted or sown in
land. a land belonging to another, then maybe he is entitled to
something but that really depends on whether or not he is
How do you distinguish “planting” from “sowing”? bad faith especially if the BPS was made through his
Planting Sowing expense.
If we talk about perennial Annual crops are those that
crops, then you plant it. you have to plant and wait We already know the characters under Article 446:
(referring to trees like so it is called sowing. 1. The builder, planter or sower
2. The land owner
algene c.
26
value of the materials. If he is in bad faith, then he also

Art. 447. The owner of the land who makes thereon, needs to pay the material owner damages.
personally or through another, plantings, constructions or
works with the materials of another, shall pay their value; The third sentence is very important: The owner of the
and, if he acted in bad faith, he shall also be obliged to the materials shall have the right to remove them only in case
reparation of damages. The owner of the materials shall he can do so without injury to the work constructed, or
have the right to remove them only in case he can do so without the plantings, constructions or works being
without injury to the work constructed, or without the destroyed.
plantings, constructions or works being destroyed.
However, if the landowner acted in bad faith, the owner of What does this sentence imply? If the planting and the
the materials may remove them in any event, with a right building is temporary (in the sense that it is not
to be indemnified for damages. (360a) permanently) adhered to the soil, there is no accession
because the owner of the materials can get back his
Article 447 introduces another character and that is the materials without injuring the work constructed or
owner of the materials or the material owner. plantings being destroyed. So that is the only situation
when the material owner can get his materials. That is if the
How many characters do we have in Article 447? land owner is in good faith.
1. The owner of the land – who uses the materials of
another to build or plant something If the land owner acted in bad faith, then the material
2. The owner of the materials owner can remove them in any event. The absolute right to
remove his materials is available and right to be indemnified
Who between the two characters is the active party? of damages. If the land owner was in bad faith, he
Owner of the land. (Basis: “the owner of the land who absolutely knew that he was using materials that does not
makes xxx.”) belong to him so why should he benefit by the principle of
accession?
Does the owner of the land own what was planted or
constructed on his land (referring to constructions, works Summary:
or plantings)? Yes because of the right of accession. Land Owner Rights of If land owner
Material Owner does not pay.
The situation here is that the owner of the land uses the Good faith Recover the value MO cannot
materials of another to build something or plant of the materials remove the
something. The materials owner cannot say that he owns plantings, works
what was planted or built. However, the land owner must or constructions
pay the material owner for the materials used. (PWC) without
causing injury or
Under the first sentence “owner of the land who makes destroying them.
thereon, personally or through another, plantings, Exception: When
constructions or works with the materials of another, shall the PWC is
pay their value”, is the land owner in good faith or bad temporarily
faith? adhered to the
Good faith because there is the word bad faith in the land or not
second sentence. (Basis: the provision “if he acted in bad permanent.
faith, he shall also be obliged to the reparation of Bad faith Recover the value MO can always
damages.”) of materials + remove in any
Damages event with right
If he is in bad faith, does the land owner need to pay for the to recover
value of the materials? Yes. Of course. Plus damages. damages.
(Absolute right.)
From this point, do not forget that bad faith equals
damages. Anyone who is in bad faith has to pay damages. If Despite this provision being important, we don’t really have
the land owner is good faith, he only needs to pay for the a case that falls under this provision. We have that one case
wherein the SC just used Article 447 by analogy.
algene c.
27
Is the BPS in this article in good faith or bad faith? Good

CASE: faith.
Pacific Farms vs. Esguera: What is Article 447 all about? What is the scenario here? The owner discovered that
Who are the characters? Who are considered as the someone planted, sown or built on his land.
principal and accessory in this case?
There is really no material owner in this case. The SC said Who owns what was built, planted or sown? The land
that the building is the principal and the components of the owner. Reason: Right of accession. It is the owner of the
building as accessory. Article 447 is not really applicable. principal who owns the accessory.
There are other applicable provisions like the law on sales.
You cannot really imagine the situation in this case that can How do you become the owner? What are the options of
match Article 447. the land owner?
1. To appropriate what was built, planted or sown for
June 30, 2014 himself after payment of indemnity
2. To oblige the one who build or planted to pay the
Just don’t forget that when you apply a provision to a price of the land and the sower to pay the proper
certain situation, you have to know who the characters are. rent
That is exactly what happened in the case of Pacific Farms.
The characters in Article 447 are the material owner and the Why is there a different treatment between the builder-‐
land owner. In Pacific Farms, there is no landowner that planter on one hand and the sower on the other hand? Why
used the materials of another and there is no material is it that the builder or planter can be obliged to pay the
owner here who owns the materials because the materials value of the land while the sower can only be obliged to
have already been delivered to Insular Farms (original pay the proper rent?
builder). Planting refers to perennial crops and sowing refers to
annual crops. Planting is more permanent while sowing is
You can see that it cannot be applied directly. When I ask only temporary. The land owner cannot oblige the sower to
you a question, you have to be aware of these questions. buy his land because annual crops are not permanent, they
Do not give me facts. Cite the law. disappear. But when we talk about trees, they are
practically there forever and therefore, the land owner has
Let’s go to another important provision in the Civil Code. the option to compel the planter to pay the price of the
It’s the source of many cases. land.
Art. 448. The owner of the land on which anything has Is the right to oblige the builder or planter to buy the land
been built, sown or planted in good faith, shall have the absolute?
right to appropriate as his own the works, sowing or NO. Article 448 provides that: The builder or planter
planting, after payment of the indemnity provided for in cannot be obliged to buy the land if its value is
Articles 546 and 548, or to oblige the one who built or considerably more than that of the building or trees.
planted to pay the price of the land, and the one who
sowed, the proper rent. However, the builder or planter “If the value of the land is considerably more than that of the
cannot be obliged to buy the land if its value is building.” Meaning if the building’s value is P50,000 and the
considerably more than that of the building or trees. In land’s is P5,000,000 then the land owner cannot compel
such case, he shall pay reasonable rent, if the owner of the the builder or planter to buy the land. (Price of Land > Land
land does not choose to appropriate the building or trees of Building = cannot exercise option)
after proper indemnity. The parties shall agree upon the
terms of the lease and in case of disagreement, the court What is the option of the land owner if he cannot apply the
shall fix the terms thereof. (361a) option to compel the builder or planter to pay the value of
the land? To collect reasonable rent.
How many main characters do we have here?
1. The land owner The landowner here can choose to pay the value of the
2. The person who built, planted or sown (BPS) building at P50,000 but if he doesn’t really want to pay then
he will just agree with the builder or planter for the latter to
pay reasonable rent. The parties shall agree upon the terms
algene c.
28
of the lease and in case of disagreement, the court shall fix

with Isidro. It was only after partition that it was discovered
the terms thereof.
that the part of the land stood on the part of Florencio’s
land.
Who is the active party in Article 448 (the active party
The SC here said to Florencio to just sell the portion of the
refers to the person who cause the situation to happen)?
land where the encroachment was sitting on. That was the
The BPS. He built, planted and sowed on the land of
best solution because if you appropriate the part of the
another.
house (like what if it’s the toilet), then weird diba? The SC
said that the lower court cannot dictate upon the land
Did he know that the land belong to another? No. He is in
owner. The right of choice belongs to the land owner, not
good faith. He thought that he was planting on his own
to the BPS nor the court.
property. The land owner will just react in this case.
Take note ha, in co-‐ownership and then partition, Article
448 is not directly applicable. But for purposes of
In this situation in Article 448, remember that the land
determining the rights of the parties after the partition with
owner is in good faith. He did not know that somebody
encroachment, then Article 448 can be applied. BUT allow
built, planted or sowed on his land. At the same time, the
the land owner to choose, the court must not dictate.
BPS is also in good faith. He did not know that he does not
own the land. Those are the rights.
Tayag vs. Yuseco: The principle here is – once a party, in
conformity with the court, has made his choice, duly
There is this “limited right of removal” which is not in the
informed the court of his choice and duly ordered to
provisions but was enunciated in a case.
comply the same, the land owner can no longer change his
or her mind.
CASES:
If you are the land owner, make sure to think twice before
you make the choice. If you choose to appropriate for
Hilario vs. Ignacio: The SC discussed the right of retention.
yourself what was BPS, make sure you have the money to
If the land owner chooses to appropriate what was built,
pay for the price. Otherwise, the BPS has the right to retain
planted or sown, then he must pay the BPS. If the land
possession of what was planted, build or sown on the land
owner does not pay the BPS right away, the BPS is not
owner’s property.
obliged to give up possession of the property. The BPS has
Now, I really don’t know why Art. 448 was applied in this
the right of retention.
case because the guy knew that the property did not
The second principle is: There is no other choice under
belong to him. He was only allowed to use it. He knew that
Article 448 except options 1 and 2. Initially, the land owner
the property belong to the Tayag’s. But anyway, that’s not
must choose between 1 and 2. He cannot put his own
the point I want to made but that once the choice is made,
option provided under the law. What about his limited right
the land owner cannot make another choice.
of removal? This is available if the land owner chooses
option two (to compel the BP to buy the land). If the BP
This case really illustrates Article 448.
does not pay the agreed price after the land owner chooses
Pleasantville Dev’t. Corp vs. CA: Even if Article 448 gives us
option 2 when the price of the land is not considerably
two options, the parties can still agree. Article 448 refers to
greater than the price of the building, then that is the time
the options available to the land owner if the parties want
that the land owner can say remove whatever you planted
to go to court. Take note that the parties can enter into a
or sown. Since the BP does not want to pay the value of
compromise agreement.
the land where the BP planted and built on, the BP needs
This case is a classic example of Article 448 because Key did
to remove the improvement. That is the limited right of
not know that he was not building on his lot. Key built on a
removal as established in the old case of Hilario (1946 case).
wrong lot and thus, he was in good faith. Again, remember
that the parties can enter into an agreement. If you reach
Ignao vs. IAC: We have a situation here where the two
Civil Procedure, you will learn that there is judgment upon a
persons are co-‐owners. As co-‐owners, they own an undivided
compromise. Even if you are already going to court, you can
portion of the entire property. After they decided to
enter into some kind of agreement.
partition (1/3 for Isidro and 2/3 for Florencio), the part of the
house of Isidro was sitting on the portion that was
Pecson vs. CA: Is Article 448 applicable? No. Article 448
allocated to Florencio.
talks to a situation when there are two parties involve – the
Is this a situation under Article 448? No because when the
land owner and builder. In this case, the owner of the land
house was built, the parties were still co-‐owners. So one did
is also the builder who loses possession of the land by
not built on the land of another but on the land co-‐owned
virtue of a sale, etc.
algene c.
29
In this case, Pecson was the owner as well as the builder

two options in Article 448 because the said provision does
who losses possession of the land through public auction in
not apply.
failure to pay realty taxes. The SC said that on the provision
What applies is the provision on lease. There was a lease
on indemnity, the Court can apply by analogy Article 448.
contract between the parties. Here comes the concept of
Right of retention was present in this case.
agency. Parilla, being a dealer, is considered as an agent of
Shell and it also bound by the lease contract and the
July 1, 2014
provisions on lease. Since the improvements made by
Parilla were not suitable to the use for which the lease was
We have discussed that the builder, planter or sower has
intended, then the lessor (Pilar) is not obliged to pay ½ of
the right of retention if the land owner chooses to
the value of the improvements. {Personal note: Must read
appropriate and the latter cannot pay yet. In the case of
the case kay libog.}
Pecson, the SC said that the amount to be paid is not the
cost of the construction but the current market value of
Republic vs. Judge Ballocanag: Are the characters in Article
the property built, planted or sown.
448 the same in the characters in this case? Yes. We have
the landowner (State)and the builder (Reyes).
In the said case, Pecson lost ownership of the lot but not
So Article 448 is applicable but can it be applied fully? No.
the building. If the realty taxes are not paid, the
Why is there a restricted application Article 448? There is
government may sell the particular property in a public
only one option in this case which is number one. It is
auction. When Pecson constructed the building on the land,
pointless to file a case for reversion.
he did not declare it. He didn’t pay for the realty taxes of
This is another principle established by the SC: Article 448
the land so it was sold through public auction. He loses
may apply even if the land owner is the State but there is
ownership of the land but not the ownership of building.
only a restricted application because there is only one
choice – number 1.
The land was passed on the spouses-‐buyer. Article 448 is
not applicable because Pecson constructed on his own
Sulo sa Nayon vs. Nayong Pilipino: The owner, Nayon
land. However, because of the situation, he lost ownership
Filipino Foundation, has the option of buying the hotel for
of the land. Then Article 448 can be applied by analogy.
½ of its value. But it is not obliged to do so. If he doesn’t
want to pay, then the leasee can remove the improvement.
CASES
This is an application of Article 1678.
The reason why Article 448 is not applicable to leases,
Parilla vs. Pilar: Even if there were improvements, is Pilar
tenants and all other entities and individuals who
obliged to pay ½ of the improvements? No. Don’t forget
recognize the ownership of another, whose holding or
Article 1678 which is a very important provision under lease.
possession is that of a mere holder, not in a concept of an
“Art. 1678. If the lessee makes, in good faith, useful
owner. There is just a reiteration of the Parilla case.
improvements which are suitable to the use for which the
lease is intended, without altering the form or substance of
Cabang vs. Basay: There was a final decision wherein the CA
the property leased, the lessor upon the termination of the
declared that Basay is entitled to his lot which is Lot. No.777
lease shall pay the lessee one-‐half of the value of the
and the case was remanded to the RTC to determine the
improvements at that time. Should the lessor refuse to
rights of the parties (how much should be paid kasi nga he
reimburse said amount, the lessee may remove the
has to be indemnified).
improvements, even though the principal thing may suffer
While the parties were in the RTC, there was an offer by
damage thereby. He shall not, however, cause any more
Basay to pay P21,000 but the one who built the house
impairment upon the property leased than is necessary.”
(Cabang) did not want to accept the payment. So they did
To summarize, what is a BPS in good faith? It is a BPS who
not agree. What did Basay do?
built, planted or sowed on the land of another thinking that
Under your Civil Procedure, once there has been a
he owns the land as we have seen in Pleasantville case. If
judgment, the winner of the case can file a motion for
the builder or planter plants on land that he knows belongs
execution. The owner, Basay, can get back the property
to another or acknowledges ownership of another, then he
where the house was built.
cannot be considered a builder in good faith. Therefore,
According to the builder of the house, “You cannot get my
Article 448 does not apply.
house pursuant to Article 448 because it is a family home.”
Under Article 448, Parilla, who constructed the sari-‐sari
Is the argument correct? Yes. But in this case the SC said
store and the billiard hall, is not entitled to reimbursement.
that the first judgment has already been declared final.
The land owner here is not obliged to choose between the
algene c.
30
A family home to be considered as a family home should

There is bad faith on the part of the land owner when he
be built on the land owned by the builder. Since the family
has knowledge that a property was built or planted on his
home was built on the land of Basay, it cannot be
land but he did not make any opposition.
considered a family home of Cabang. Therefore, it can be a
Even though Tuatis said that the building is of greater value
subject of execution. The land can be returned to Basay
than the land etc., it doesn’t really matter because the
including the house. They just have to agree on the price.
right of choice belongs to the land owner.
Just take note that this particular provision comes up in
If the land owner chooses option 1, what is the right of
ejectment proceedings. In this case, Basay chose option 1
Tuatis? To retain possession of the property until he be paid
and since they did agree on the price, Basay filed a motion
the proper indemnity.
for execution of the CA decision wherein the CA said that
How about if the land owner chooses option 2? He has the
Basay can recover the land including the house build by
right not to pay the value of the land if the value of the land
Cabang.
is considerably higher than the building.
In this case, Tuatis already admitted that the value of the
Narvaez vs. Alciso: Even though Article 448 is not
building is greater than the value of the land. Hence, she
applicable, if Alciso wants to buy the property, she has to
can be obligated to pay the price of the land.
pay for the value of the commercial building because what
is applicable in this case is Article 1616 (deed of sale with a
Fuentes vs. Roca: What then is the definition of a possessor
right to repurchase).
in good faith? “A possessor in good faith” is defined under
Art. 1616. The vendor cannot avail himself of the right of
Article 526:
repurchase without returning to the vendee the price of
“Art. 526. He is deemed a possessor in good faith who is
the sale, and in addition:
not aware that there exists in his title or mode of
(1) The expenses of the contract, and any other legitimate
acquisition any flaw which invalidates it.”
payments made by reason of the sale;
The title of the spouses Fuentes was void because the sale
(2) The necessary and useful expenses made on the thing
was void because the Deed of Sale was not signed by the
sold. (1518)
wife of Roca. The flaw was not known to the Fuentes
So, the price of the building + the necessary and useful
spouses, therefore they are deemed possessors in good
expenses. If Alciso wants to repurchase, he has to pay first
faith. Thus Article 448 is applicable.
not under Article 448 but under Article 1616.
This case of Fuentes vs. Roca is another classic example of a
Article 448 does not apply in deed of sale with right to
situation wherein Article 448 really applies. The other one is
repurchase if the seller decides to repurchase the
the case of Pleasantville wherein the builder wrongfully
property.
built on the land of another. In the case of Fuentes, the
builder bought the property thinking that there was
July 2, 2014
nothing wrong in the title or mode of acquisition… but it
turned out that there was something wrong with it.
Remember all the doctrines established in the cases ha.
Let’s continue with the reporting:
Benedicto vs. Flores: This is related to your topic in sales –
double sale. The situation here is: A sold lot to B. B built his
CASES
house on the lot but did not register the sale or bother to
transfer the title to his name. A knew about this and sold
Tuatis vs. Escol: The parties are both in bad faith in this
the lot again to C. C registered the sale and had the title
case. Tuatis took possession the land and built the
transferred to his name.
improvements when she knew that the ownership still
Who owns the land? According to Article 1544:
belongs to VisMin. VisMin is also is bad faith because it “Art. 1544. If the same thing should have been sold to
knew that Tuatis built on the land but did not do anything different vendees, the ownership shall be transferred to
about it. the person who may have first taken possession thereof in
Article 448 is applicable pursuant to Article 453 of the Civil good faith, if it should be movable property.
Code. Should it be immovable property, the ownership shall
Art. 453. If there was bad faith, not only on the part of the belong to the person acquiring it who in good faith first
person who built, planted or sowed on the land of another, recorded it in the Registry of Property.”
but also on the part of the owner of such land, the rights of So C is the rightful owner. That’s why in this case, C was the
one and the other shall be the same as though both had owner of the lot even though she was the second buyer
acted in good faith. because she registered the sale and she had the title
transferred to his name.
algene c.
31
Now how about Antonio, the first buyer, who already built
because of the contract they entered into. They cannot be
the house on the land? Then he can be considered a builder
considered builders in good faith but the seller
in good faith. When he bought the property and it was
(Communities) knew that the builder was building but did
delivered to him, ownership is transferred to him. He is the
not make oppositions and so they are also in bad faith.
owner and believed himself to be owner. BUT because of
Two bad faith equals good faith so Article 448 is applicable.
the double sale, Article 1544 will govern. Even if he acquired
There are many instances where the other provisions of the
the land through sale, he did not register it and thus, his
Civil Code are involved. Sometimes, we have to understand
ownership was lost by the second sale.
them as well in order to fully see the entire picture.
Therefore, Antonio (first buyer) is entitled to
How many days does the land owner have to make his
reimbursement in applying Article 448 in relation to Article
choice? 15 days. It’s not stated in the provision the
546.
determination of the fair market value, how many days the
“Art. 546. Necessary expenses shall be refunded to every
land owner has… that is why you have to read the cases
possessor; but only the possessor in good faith may retain
because the SC, aside from interpreting the law will
the thing until he has been reimbursed therefor.
establish its own doctrine and principles.
Useful expenses shall be refunded only to the possessor in
It was stated in this case that 15 days is already a
good faith with the same right of retention, the person
reasonable period for the land owner to make his choice
who has defeated him in the possession having the option
upon receipt of the fair market value of the property and
of refunding the amount of the expenses or of paying the
the building. There’s no point in discussing the procedure
increase in value which the thing may have acquired by
but remember na 15 days, 15 days ang period for each step.
reason thereof.”
Obviously, if Article 448 talks about good faith, Article 449
What happens after the owner makes the choice?
talks about bad faith.
Technogas vs. CA: The current market value of the land and
the value of the encroaching structure must be determined
Art. 449. He who builds, plants or sows in bad faith on the
because if option 2 is chosen, the value of the land and
land of another, loses what is built, planted or sown
building must be identified.
without right to indemnity. (362)
Another issue brought up here is the payment of rental. It’s
counted not from the time Technogas took possession but
from the time the encroachment happened. Even before, There is only one person who is in bad faith here. Who is
he? The BPS.
the building was purchased by Technogas, right? Even
before the building was constructed because Technogas
was a successor-‐in-‐interest of the seller. What is the effect if the BPS built, planted and sowed in bad
So when the land owner chooses option 1, the rentals will faith in the land of another? He loses what is built, planted
stop. Because there is now a right of retention. Presumably, or sown without right to indemnity.
the land owner will now appropriate that portion and take
possession of the part of the building and the fence that How do you relate this with Article 443 which provides that
encroach his property. Since it is now the owner of the land “He who receives the fruits has the obligation to pay the
who wants to appropriate the property, then it is he who expenses made by a third person in their production,
has the obligation to pay in order to assume possession of gathering, and preservation (PGP).” Isn’t the third person
the property. Otherwise, Technogas now has the right of here the builder in bad faith?
retention without having been to pay rent because the
option has been made. So what should be followed, Article 443 or 449? How do
If the second option is chosen, the rent must be paid until you distinguish the two articles?
the builder (Technogas) pays the value of the land.
Communities vs. Nanol: Article 448 can still be applied. This

case is related to your topic in sales – contract to sell. In
contract to sell, ownership is not transferred to the buyer
because the land is still to be amortized. Even if the
property is delivered to the buyer, there is a xxx there that
the ownership still belongs to the seller.
When they improved the existing building here, they are
not the owners and they knew that they are not the owners
algene c.
32
Article 443 Article 449

Applied to what? To gathered or To pending crops
harvested crops (those not yet
harvested)
Situation There is a planter There is a BPS in
in bad faith who, bad faith and the
for example, landowner
planted a durian discovers about
tree and it.
algene c.
33
1. Demand the demolition of the work

harvested theor remove the planting
(The fruits have or sowing
All at the expense of thedurian
BPS. fruits and not yet been
the land owner harvested.) 2. Compel the builder or planter to pay the price or
finds out about it the sower to pay the proper rent
What should the The planter has to The planter loses
planter do? return to the what was Art. 451. In the cases of the two preceding articles, the
landowner the planted, built or landowner is entitled to damages from the builder, planter
value of the sown without a or sower. (n)
durian because it right to
belongs to indemnity. Again, bad faith equals damages. If the BPS is in bad faith,
landowner under Automatically, the landowner has three options. Of course, they are
the principle of everything will alternative.
accession. belong to the 1. Appropriate to himself the property (Article 449)
owner. 2. Demand the demolition of the work or remove the
What should the Because the The landowner planting or sowing (Article 450)
land owner do? durian has already has no obligation 3. Compel the builder or planter to pay the price or
been gathered, to pay the BPS. the sower to pay the proper rent (Article 450)
the planter in bad No need to pay
faith already for the fertilizer, The right of removal is not available under Article 449 but it
incurred etc. exists under Article 450.
expenses then he Exception:
can charge the Provided under Art. 452. The builder, planter or sower in bad faith is
landowner for Article 452: entitled to reimbursement for the necessary expenses of
the pgp. necessary preservation of the land. (n)
expenses for the
preservation of In relation to Article 449 of the Civil Code.
the land (most of
the time, realty Art. 453. If there was bad faith, not only on the part of the
taxes paid by the person who built, planted or sowed on the land of
BPS) another, but also on the part of the owner of such land,
What is the effect if you built, planted and sowed in bad the rights of one and the other shall be the same as
faith? You lose everything. This means that the landowner though both had acted in good faith.
can appropriate to himself what was built, planted or sown It is understood that there is bad faith on the part of the
without reimbursement. The rights of a landowner when landowner whenever the act was done with his
the BPS in bad faith under Article 449: appropriate the knowledge and without opposition on his part. (354a)
property + damages.
Art. 454. When the landowner acted in bad faith and the
What is the other right available to the landowners? That is builder, planter or sower proceeded in good faith, the
provided under Article 450. provisions of article 447 shall apply. (n)
Art. 450. The owner of the land on which anything has “Art. 447. The owner of the land who makes thereon,
been built, planted or sown in bad faith may demand the personally or through another, plantings, constructions or
demolition of the work, or that the planting or sowing be works with the materials of another, shall pay their value;
removed, in order to replace things in their former and, if he acted in bad faith, he shall also be obliged to the
condition at the expense of the person who built, planted reparation of damages. The owner of the materials shall
or sowed; or he may compel the builder or planter to pay have the right to remove them only in case he can do so
the price of the land, and the sower the proper rent. without injury to the work constructed, or without the
(363a) plantings, constructions or works being destroyed.
However, if the landowner acted in bad faith, the owner of
It says that the landowner may: the materials may remove them in any event, with a right to
be indemnified for damages.”
algene c.
34
land shall answer subsidiarily for their value and only in

Who will the considered the land owner and the material
the event that the one who made use of them has no
owner here? It is still the BPS who is the active party here.
property with which to pay.
This provision shall not apply if the owner makes use of
How did the land owner acted in bad faith? He has
the right granted by article 450. If the owner of the
knowledge about the BPS but did not make any opposition.
materials, plants or seeds has been paid by the builder,
planter or sower, the latter may demand from the
Let us go back to the case of Pleasantville… Key is the
landowner the value of the materials and labor. (365a)
builder who built on the land of Hardinico. Key did not
know that he was building on the wrong lot but Hardinico
How many characters are there in Article 445? Three.
knew. He did not say anything thinking na baka makuha
1. Land owner
niya ang bahay under the principle of accession. So is that
2. Material owner
the case here?
3. Builder, planter and sower
How do you apply Article 447 in the situation? The role of
Who is the active party here? BPS. He built, planted and
the landowner under Article 454 is still a landowner under
sowed on the land of the land owner using the materials of
Article 447. This means that he still needs to make
the material owner. He caused the situation to happen.
reimbursement. If there’s a house in the land of X, X cannot
get it under the principle of accession. He has to pay for the
Who is liable to pay the material owner for the value of the
value first.
materials? The BPS. If he is insolvent, the land owner is
subsidiarily liable.
Can the BPS remove his house? No. Just apply Article 447 in
Article 454. Make sure to know the situation first before
Three requisites for the landowner to be subsidiarilly
applying the provision.
liable to the material owner are:
In this case, there is a BPS who built, planted and sowed, in
1. The BPS is insolvent
good faith, on the land of another and the landowner is in
2. The BPS is in good faith
bad faith. The provisions of Article 447 will apply (so read
3. The landowner will appropriate what was built,
the comments under Article 447). Take note that aside
planted or sown
from reimbursement, the landowner needs to pay for the
damages. Again, he is in bad faith here.
Why is the landowner NOT subsidiarilly liable if he does not
choose to appropriate? Because he does not derive any
CASE
profit or benefit. The landowner can only be made liable
for the materials if he profits from the accession of the
Editha Alviola vs. CA: Both parties here are in bad faith,
property.
hence the provision of good faith can applied. Take note of
this case. The SC here quoted again Sen. Tolentino that
There is no accession under Article 450 (read the last
accession is only applicable when the building is
sentence of the provision.) There is only accession if he
permanent in nature. The store and the other building here
chooses the first option, to appropriate whatever is
is not permanent. It can be removed without causing
planted, built or sown on his land. Therefore, he needs to
destruction here.
pay for the indemnity whether or not the materials belong
Even if they may be considered in good faith, Article 448
to the BPS or the material owner. If sa BPS, he needs to pay
still cannot be applied. This provisions on accession are only
for the labor. If sa material owner, he needs to pay the
applicable if the improvements are permanent, not
value of the materials.
temporary.
If he chooses Article 450, the right of removal or sell the
July 3, 2014
portion of the property to the BP or rent to the S, then
there is no accession. Therefore, he cannot be compelled
Let’s discuss the last few provisions under industrial
to indemnify. Note: Options available to the landowner –
accession.
Article 449 and 450.
Art. 455. If the materials, plants or seeds belong to a third
What are the rules as regard Article 455?
person who has not acted in bad faith, the owner of the
 The rights of the BPS will remain unaffected.
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35
 If the material owner is in bad faith, he loses the

3. The river must continue to exist – if gone,
right to be indemnified and of course, damages.
then different story na
 If the material owner is in good faith, he can run
4. The increase must be comparably little
after the BPS because it is the latter who uses the
material.
CASES
 The landowner can be subsidiarilly liable if the BPS
is insolvent and only if the landowner appropriates. Zapata vs. Director or Lands: Despite the fact that the fish
traps actually helped perhaps in the trapping of the soil and
Art. 456. In the cases regulated in the preceding articles, not only the fish… So the river pushed the soil in the land
good faith does not necessarily exclude negligence, which and the fish traps prevented from coming back to the river.
gives right to damages under article 2176. (n) Perhaps, that is what the Bureau of Land alleged.
The SC said that maybe the fish traps helped but it was not
Just because one is negligent doesn’t mean that he is not in only the reason why alluvial deposits were made on the
good faith. property of Zapata.
As there is no evidence to show that the setting up or
We are done with industrial accession. Let us now go to erection of the fish trap was expressly intended or
natural accession / accession continua natural… designed to cause or bring about the accretion, Zapata
may still invoke the benefit of the provisions of Article 457
Art. 457. To the owners of lands adjoining the banks of of the Civil Code.
rivers belong the accretion which they gradually receive In this 1962 case, SC said that as long as the riparian owner
from the effects of the current of the waters. (336) did not set up any gadget in order to attract the soil so that
his land will become bigger, then he can still benefit under
Very simple provision that there are many issues in relation Article 457.
to Article 457. Let’s go first to the four principal kinds of
natural accession: Vda. De Nazareno vs. CA: The SC said that man-‐made
1. Alluvium accretions form part of the public dominion. For Article 457
2. Avulsion to apply, the formation of the alluvial deposit must be
3. Change of the course of rivers exclusively the work of the nature. There should be no
4. Formation of islands human participation in any shape or form.
Alluvium – the gradual deposit of sediment by the natural Heirs of Navarro vs. IAC: If the accretion is formed “here,”
current of fresh water (Under 457, it says rivers but actually that is considered the property of Pascual by the principle
fresh bodies of water are included such as creeks, streams of accession. Unfortunately, the accretion was formed
and lakes. Ponds are not included.) along the sea. That is considered as foreshore land and
could be a subject of foreshore land. The one leasing it,
If there is alluvium, can you distinguish the original land and Navarro, can still make use of the property because it
the alluvial deposits? No, the original identity of the alluvial belongs to the state.
deposit being lost. So anything formed from the natural current of the sea is
property of the public dominion.
Accretion in Article 457 refer to alluvial deposit because
accretion is a broader term. Accretion is the process by Grande vs. CA: For example, we have here a parcel of land
which the soil is deposited on the river banks. owned by C and it’s adjacent to the river. This land is titled
with TCT No. 23456. Let’s say that in 1961, this is the
Even if Article 457 is very short, there are requisites for the boundary of the property (draws on the board). In 1991, the
riparian owner to actually be considered the owner of the property became bigger because of the current of the river.
alluvial deposits: Let us say all the requisites are present.
1. The deposit should be gradual, natural and However, in 1961, this portion (referring to the accretion by
imperceptible – it should not be sudden nor reason of the current of the river) was occupied by X. So
man-‐made, imperceptible means slowly who owns that portion of the land? C by principle of
2. Cause of the accretion is the current of the accession. Since it is unregistered by C, then it can be
river – no other cause acquired through prescription. Therefore, X can acquire the
land by virtue of acquisitive prescription and C can lose
ownership through prescription.
algene c.
36
If C only tries to register in 1995 and it is proven that X has

owners of the estates adjacent thereto and as increment
been occupying the lot since 1961, then 35 years na so even
thereof."
if X was in bad faith, may extraordinary prescription na. But
Therefore, Article 4 recognizes the preferential right of the
if C tried to registered in 1969, X would have not yet
littoral (owner of land adjacent to sea) owner to the
acquired ownership over the portion with alluvial deposit.
foreshore land formed by accretions or alluvial deposits
The presumption here is that X was in bad faith.
due to the action of the sea. Why? Let’s say, the sea eats up
The SC said that ownership is one thing under the principle
a portion of the property of the littoral owner so there will
of accession. You are automatically the owner of anything
be a decrease in the property, hence the person prejudiced
produced or attached to your property. But if the Civil Code
is the littoral owner. What if the sea decides to go back and
says that you have to register but you did not so you will
pushes alluvial deposits on to the shores? The one who
lose the ownership.
should benefit is the littoral owner just like Article 457.
The fact remain, however, that the Grandes never sought
The reason for the preferential right is the same as the
registration of said alluvial property (which was formed
justification for giving accretions to the riparian owner for
sometime after Grande's property covered by OCT No.
the diminutions which his land suffers by reason of the
2982 was registered on June 9, 1934) up to the time they
destructive force of the waters. So, in the case of littoral
instituted the present action in 1958. The increment,
lands, he who loses by the encroachments of the sea
therefore, never became registered property, and hence is
should gain by its recession.
not entitled or subject to the protection of
In this case, the littoral owner should have applied for
imprescriptibility enjoyed by registered property under
foreshore lease. He could have been given preferential
the Torrens system. Consequently, it was subject to
right of lease over that portion. But he did not, he simply
acquisition through prescription by third persons.
opposed and wanted to acquire ownership over the
In other words, if this registered property was the one
accretion.
occupied by X, X will never acquire ownership and C will
Another issue here is: Could the littoral owner be
never lose ownership. Unfortunately for C, what was
considered to have waived or abandoned its preferential
occupied by X was the portion formed by accretion which
right to lease the disputed area when it filed an application
was not registered in time.
for registration? No. There is no river. For being a part of
the public domain, ownership of the area could not be
Office of City Mayor vs. Ebio: This case is only a reiteration
acquired by WESVICO. Its preferential right remained,
of the Grande doctrine. Even though GH is the riparian
however. Its move to have the contested land titled in its
owner, since it has been occupied by Ebio and his
name, albeit a faux pas, in fact more than proves its interest
predecessors-‐in-‐interest then Guaranteed Homes (GH) has lost
to utilize it. So because it was a wrong move doesn’t mean
ownership over that area formed by accretion. Even if Ebio
you waive your right to the other move which is to lease
has not yet registered the land under his name, that doesn’t
the property.
mean that he lost ownership over the land. The ownership
here was acquired and lost through prescription.
Art. 458. The owners of estates adjoining ponds or lagoons
do not acquire the land left dry by the natural decrease of
Saian Enterprise vs. FF Cruz: We learned that foreshore
the waters, or lose that inundated by them in
land is property of public dominion. If it is reclaimed in
extraordinary floods. (367)
whatever form, by whoever, whether private or public, it is
still property of the public dominion. The fact that it was FF
Cruz who allegedly reclaimed that foreshore portion of the This is the exact opposite of Article 457. If it’s a pond or
property doesn’t make him the owner. It doesn’t give him lagoon, it becomes a status quo. So even if the pond
the right to preferential lease. becomes very small, the dried up area of the pond does not
That rule in paragraph 32 is in consonance with article 4 of belong to the areas of the adjoining estates. If the pond
the Spanish Law of Waters of 1866 which provides that, was originally small and it becomes big to occupy the 200
while lands added to the shores by accretions and alluvial sq. m. of the adjoining owner, the owner still owns the land
deposits caused by the action of the sea form part of the under the water. It’s a simple as that.
public domain, such lands, when they are no longer
washed by the waters of the sea are not necessary for Art. 459. Whenever the current of a river, creek or torrent
purposes of public utility, or for the establishment of segregates from an estate on its bank a known portion of
special industries, or for the coast guard service," shall be land and transfers it to another estate, the owner of the
declared by the Government "to be the property of the land to which the segregated portion belonged retains the
ownership of it, provided that he removes the same within
algene c.
37
two years. (368a) It can happen that the situation could be very
uncomfortable for the land owners. This is the situation:
This is what I do not understand – avulsion. So if there is a The river is on the land of A tapos it dries up and the river
known portion of the soil or land which transferred to the transfers to C. Now, the question is who owns the dried up
estate of another, then the original owner of the land can river bed? C. Pero C has to go through the properties of A
get it back within two years. That’s it. and B pa muna. So Article 461 is giving the parties a
We will not expound because it’s weird. Characteristics of solution.
avulsion:
a. It is abrupt – One day, the known portion of Before RIVER A B C
soil or land is on Kennerly’s property. The next After DRY A B RIVER
day, he wakes up and it is on Dem Rev’s
property. A can pay C the value thereof. He has the right to acquire
b. The portion segregated is identifiable or the same by paying the value thereof, which value shall not
verifiable – you can hire a tractor to transport exceed the value of the area occupied by the new bed.
your one cubic of soil which transferred to
another estate back to your land Let us say that the river of C is 10 meters long ang A. Tapos
ang river kay 3 meters ang occupied. A gains 10 meter wide
According to Reyes Puno, avulsion is a case of “delayed parcel of land while C lost 3 meters of his land. C cannot
accession.” Meaning, DemRev will acquire ownership of demand for A to pay for the value of the 10 meters but only
that portion of soil only after two years. Not instantly. for 3 meters.
Art. 460. Trees uprooted and carried away by the current Requisites for the application of Article 461:
of the waters belong to the owner of the land upon which 1. The change must be sudden – unlike Article 457
they may be cast, if the owners do not claim them within which is gradual
six months. If such owners claim them, they shall pay the 2. The change of the course must be more or less
expenses incurred in gathering them or putting them in a permanent, not temporary over flooding of
safe place. (369a) another – so yung changes caused by the typhoon
are not included for they are not permanent, paiba-‐
It’s a different treatment if it’s the tree. If you are the iba yun
owner of the tree and it is now uprooted on the land of 3. The change of the river bed must be a natural one
another, you only have 6 months to get your tree back. If 4. The river must continue to exist – there must be a
such owners claim them, they shall pay the expenses river; if the river disappears, it belongs to the
incurred in gathering them or putting them in a safe place. public dominion (kapag hindi nagtransfer ang river
Take note of this provision. sa ibang land, nawala lang talaga bigla – nadry up
all of a sudden)
Art. 461. River beds which are abandoned through the
natural change in the course of the waters ipso facto In relation to Article 461 is PD 1067:
belong to the owners whose lands are occupied by the
new course in proportion to the area lost. However, the “Article 58. When a river or stream suddenly changes its
owners of the lands adjoining the old bed shall have the course to traverse private lands, the owners of the affected
right to acquire the same by paying the value thereof, lands may not compel the government to restore the river
which value shall not exceed the value of the area to its former bed; nor can they restrain the government
occupied by the new bed. (370a) from taking steps to revert the river or stream to its former
course. The owners of the land thus affected are not
There is a possibility that the river will change its course. entitled to compensation for any damage sustained
We have different cases about this. thereby. However, the former owners of the new bed shall
be the owners of the abandoned bed in proportion to the
“River beds which are abandoned through the natural area lost by each.
change in the course of the waters ipso facto belong to the
owners whose lands are occupied by the new course in The owners of the affected lands may undertake to return
proportion to the area lost.” the river or stream to its old bed at their own expense;
Provided, That a permit therefor is secured from the
algene c.
38
Secretary of Public Works, Transportation and

According to Article 175 of the Law of Waters: It is the
Communication and work pertaining thereto are
government that should declare whether the river is
commenced within two years from the change in the
navigable or floatable.
course of the river or stream.”
Hence it depends how the government considers the river.
Let’s summarize.
An example of navigable river is Davao river. If the city says
 Who is the owner of the land occupied by the
navigable or floatable, then it is.
river? C.
 Can C say “Why is this river on my land? You bring it
In one case, the SC said that rivers are navigable in law if
back to the original river bed.” Can C do this? NO.
navigable in fact for some beneficial purpose for trade or
(under Article 461 but under PD 1067 Yes.)
commerce. In other words, if you can put a banca there,
 What if C likes the river and the government wants then it’s navigable or floatable.
to do something about it, can C say “Just leave the
river there.” Can he do that? NO.
CASES (Continuation from Article 457 list)
 Can he ask for reimbursement from the
government? NO. He can ask from A by selling the Bagaipo vs. CA: This involves the Davao river. Through the
property at the current market value. years, Bagaipo discovered that his land become smaller and
 Can C actually move the river to his own bed? Yes. the owner’s lot on the other side become bigger. Well
But at his expense and he must first get a permit obviously, the owner of the other lot gets the benefit.
(read Article 58 of PD1067). The SC said that registration does not protect the riparian
owner against the diminution of the area of his land
Art. 462. Whenever a river, changing its course by natural through gradual changes in the course of the adjoining
causes, opens a new bed through a private estate, this bed stream.
shall become of public dominion. (372a) Nobody can acquire ownership if the land is registered. But
under the rules of accretion, if the river gradually makes
If the estates of A, B, C and D are adjacent to a river and
your river smaller, then it’s your loss.
suddenly may three branches na ang river… (*Atty. S draws
on the board*)
Agustin vs. IAC: Gradually, the river moved for almost 50
years. Melad in this case still owns the accretion by virtue of
What happens to the new river beds? It belongs to the
Article 457. Articles 461 was applied in this case. Melad
property of the public dominion. This is the opposite of
owns the dried up river bed.
Article 457. Under Article 462, sorry nalang sila A, B, C and D
if the river branches out to their properties.
Art. 465. Islands which through successive accumulation of
alluvial deposits are formed in non-‐navigable and non-‐
Art. 463. Whenever the current of a river divides itself into
floatable rivers, belong to the owners of the margins or
branches, leaving a piece of land or part thereof isolated,
banks nearest to each of them, or to the owners of both
the owner of the land retains his ownership. He also
margins if the island is in the middle of the river, in which
retains it if a portion of land is separated from the estate
case it shall be divided longitudinally in halves. If a single
by the current. (374)
island thus formed be more distant from one margin than
from the other, the owner of the nearer margin shall be
This is a continuation of Article 462. It lays down the rule
the sole owner thereof. (373a)
when the current of the river divides itself to branches.
July 7, 2014
Art. 464. Islands which may be formed on the seas within
Art. 466. Whenever two movable things belonging to
the jurisdiction of the Philippines, on lakes, and on
different owners are, without bad faith, united in such a
navigable or floatable rivers belong to the State. (371a)
way that they form a single object, the owner of the
principal thing acquires the accessory, indemnifying the
Any island that appears, no matter how small it is belong to
former owner thereof for its value. (375)
the state provided it is formed on the lakes and navigable
or floatable rivers.
What is a navigable or floatable river?
algene c.
39
This is similar to our discussions on accretion with respect

If you cannot determine the one used to perfect the other
to immovable. It’s just that we are talking here of movable
like in weaving, you have blue and red threads, what will
properties belonging to different owners.
you do? You can use the next test on Article 468.
The owner of the principal acquires the accessory by
Art. 468. If it cannot be determined by the rule given in the
principle of accession. BUT he has to indemnify the owner
preceding article which of the two things incorporated is
of the accessory for its value.
the principal one, the thing of the greater value shall be so
considered, and as between two things of equal value,
Just like what we discussed in the case of Alviola vs. CA, in
that of the greater volume.
accession with regard to immovable property, it only exists
In painting and sculpture, writings, printed matter,
if separation is not separable.
engraving and lithographs, the board, metal, stone,
canvas, paper or parchment shall be deemed the accessory
Adjunction is a process wherein two movables belonging
thing. (377)
to different owners are united in such a way that they
form a single object.
“The thing of the greater value shall be so considered” – so
If the two movables belong to the same person, then there if the red thread is more valuable than the blue thread, then
is no accession. the red is considered as the principal while the blue is the
accessory.
There are many kinds of adjunctions:
1. Inclusion – ex. sapphire attached to a ring (but this “That of the greater volume“– If they have the same
is not a good example because you can remove the price… you have to look out the product and ask which is
sapphire easily without causing injury to the ring) the dominant color (blue or red?)
2. Soldering – ex. lead wherein it is melted to cover a
tank (then the owner of the tank that is The canvass is the accessory. The paint is the principal. In
incorporated on the tank) writing, the ink is the principal and the paper is considered
3. Writing – ex. Ink of pen used in writing in the paper as the accessory (regardless of the value of the paper, it is
(you cannot separate the ink from the paper after always considered as the accessory). According to Article
it has been written) 468, you do not use the test of greater value or the test of
4. Painting intention. It is by express provision of the law na ha – “In
5. Weaving – ex. The owner of the red thread is painting and sculpture, writings, printed matter, engraving
different from the owner of the blue thread and lithographs, the board, metal, stone, canvas, paper or
parchment shall be deemed the accessory thing.”
Again, the situation in adjunction is that: two movables
belonging to different persons unite and form a single Just take note of the special rules to determine what is the
object. The effect is that the owner of the principal owns principal.
the accessory.
Art. 469. Whenever the things united can be separated
The issue now is how will you determine who is the without injury, their respective owners may demand their
principal? Who will indemnify who? Who will acquire separation.
ownership of the new object? We have Article 467. Nevertheless, in case the thing united for the use,
embellishment or perfection of the other, is much more
Art. 467. The principal thing, as between two things precious than the principal thing, the owner of the former
incorporated, is deemed to be that to which the other has may demand its separation, even though the thing to
been united as an ornament, or for its use or perfection. which it has been incorporated may suffer some injury.
(376) (378)
There is no accession if the two things can be separated
This is the test of intention – what is used to perfect the without injuring any of them.
other. The one used to perfect the other is called the
accessory. In my example kanina – the ink and the paper. If the paper
is considered as the accessory, it is much more precious
than the ink which is the principal, the owner of the
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40
accessory may demand its separation. How it can be done, I

2. demand the separation of the accessory and the
really don’t know. Maybe find another example.
principal even if may cause the destruction of the
principal thing + damages
Source: Nevertheless, in case the thing united for the use,
It doesn’t matter what is more expensive.
embellishment or perfection of the other, is much more
precious than the principal thing, the owner of the former
If both are in bad faith, their rights and obligations will be
may demand its separation, even though the thing to which
determined as though both acted in good faith.
it has been incorporated may suffer some injury.
Art. 471. Whenever the owner of the material employed
Remember ha, we are still looking at different situations
without his consent has a right to an indemnity, he may
wherein the owners are still in good faith which means that
demand that this consist in the delivery of a thing equal in
none of them knew that their objects were united. Maybe
kind and value, and in all other respects, to that employed,
the act was done was a third person… Basta the important
or else in the price thereof, according to expert appraisal.
thing is that they do not know.
(380)
What if one of the parties is in bad faith? We have Article
We’re not talking about bad faith and good faith here but
470.
indemnity whenever the owner of the thing has a right to
indemnity. Because of accession, the owner of the principal
Art. 470. Whenever the owner of the accessory thing has
is most of the time, the owner of the accessory.
made the incorporation in bad faith, he shall lose the thing
incorporated and shall have the obligation to indemnify
Most of the time ha, not all the time. How much indemnity
the owner of the principal thing for the damages he may
can be demanded? Either delivery of a thing…
have suffered.
1. Equal in kind and value
If the one who has acted in bad faith is the owner of the
2. Price of the thing as appraised by the experts
principal thing, the owner of the accessory thing shall
(does not refer to actual value because it includes
have a right to choose between the former paying him its
sentimental value)
value or that the thing belonging to him be separated,
Note: Same lang ang principles sa adjunction sa rules on
even though for this purpose it be necessary to destroy
immovables ha.
the principal thing; and in both cases, furthermore, there
shall be indemnity for damages.
The second kind of accession involving movables is mixture.
If either one of the owners has made the incorporation
Let’s go to Article 472.
with the knowledge and without the objection of the
other, their respective rights shall be determined as
Art. 472. If by the will of their owners two things of the
though both acted in good faith. (379a)
same or different kinds are mixed, or if the mixture occurs
by chance, and in the latter case the things are not
This is a very easy article because we already know the separable without injury, each owner shall acquire a right
effect of bad faith. proportional to the part belonging to him, bearing in mind
the value of the things mixed or confused. (381)
If the owner of the accessory is in bad faith like he was the
one who used the adjunction by using the principal Under this article, is there accession? No because one does
belonging to another, then he may: not acquire ownership of the property or the accessory.
1. lose the thing incorporated and
2. he shall indemnify the principal for damages. Mixture is the combination or union of materials where
the respective identities of the component elements are
Can he get his thing back? No. Can the owner of the lost. Example: Sugar and Flour – you cannot separate them
principal acquire ownership over the accessory? Yes, together after you have mixed them. Here, we have
without payment of indemnity. proportionate ownership.
If the owner of the principal is in bad faith, then the owner 2 Kinds of Mixture:
of the accessory can: 1. Commixtion – solids are mixed
1. demand for indemnity (value of accessory and 2. Confusion – liquids are mixed
damages)
algene c.
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If the sugar owned by B is 60% and the flour owned by A is

If the mixture is composed of the same kind and the same
40%, then B is 60% owner of the mixture while A is only 40%
quality, then the mixture will be divided into two equal
owner of the mixture.
parts. In case the mixture is caused by the negligence of
one of the parties, the negligent party liable must
What about coke and sprite? Confusion to. You cannot
indemnify the other for damages.
separate them. A and B will be the co-‐owner of the mixture.
Take note, we have discussed that just because one acts
Art. 473. If by the will of only one owner, but in good faith,
negligently doesn’t mean he is in bad faith. There in
two things of the same or different kinds are mixed or
mixture, the one who negligently caused the mixture will
confused, the rights of the owners shall be determined by
not lose his property but he will have to pay damages.
the provisions of the preceding article.
If the one who caused the mixture or confusion acted in
CASE:
bad faith, he shall lose the thing belonging to him thus
mixed or confused, besides being obliged to pay indemnity
Santos vs. Bernabe: Santos deposited 778 while X
for the damages caused to the owner of the other thing
deposited 1,026 cavans + (maybe naa pay lain) = 2794 cavans
with which his own was mixed. (382)
were deposited by the two. But later, when one of them
wanted to get the palay, the total amount left was only 924
Is there an accession here? Yes. Because we have accessory
cavans of palay. Can Santos get his 778? No. Can X get his
and principal.
1,026? No.
Because of the rule in mixtures, they are the co-‐owners of
If the one who caused the mixture is in bad faith, then his
the properties to the value of his interest. What happens is
movable will be treated as an accessory because he will
that Santos will get only 398.99 while X will get 525.51
lose ownership to the principal. Plus, the principal will be
cavans of palay.
entitled to indemnity.
The next kind of an accession involving movables is
Under Articles 472 and 473, what causes mixture?
specification. We have Article 474 here.
 472: by the will of their owners – the owners in this
case agree to mix the movables together; the Art. 474. One who in good faith employs the material of
effect here is that the owners will be the co-‐ another in whole or in part in order to make a thing of a
owners different kind, shall appropriate the thing thus
 472: by chance – there is no intent from both transformed as his own, indemnifying the owner of the
owners maybe somebody mixed it; here the material for its value.
owners of the movables are co-‐owners If the material is more precious than the transformed
 473: by the will of one owner by good faith – thing or is of more value, its owner may, at his option,
example of this is A mixes his sugar with the flour appropriate the new thing to himself, after first paying
of B but he does not know that the flour does not indemnity for the value of the work, or demand indemnity
belong to him, then there is still co-‐ownership for the material.
The three situations above will have the same effect. If in the making of the thing bad faith intervened, the
Ang exception is: owner of the material shall have the right to appropriate
 473: by the will of one owner by bad faith -‐ he will the work to himself without paying anything to the maker,
lose ownership of his movable and he will have to or to demand of the latter that he indemnify him for the
pay the other damages value of the material and the damages he may have
example: B mixes his cows with the cows suffered. However, the owner of the material cannot
of A and he cannot identify now which appropriate the work in case the value of the latter, for
cows are his, so the effect is that the cows artistic or scientific reasons, is considerably more than
will be owned by A that of the material. (383a)
If both are in bad faith, then again their rights and

Is there accession here? No.
obligations will be determined by using the laws applying to
good faith.
We have a person here employing for work or material
belonging to another. He transforms the material
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belonging to another. It doesn’t have to be one specific

Let’s go to distinctions:
thing, it could involve several movables.
Adjunction Mixture Specification
An example is baking a cake which involves the flour, sugar,
union of materials union of materials transformation of
eggs and butter belonging to A. B, thinking that he owns all
belonging to where the materials by the
those ingredients belonging to A, uses them to bake cake…
different owners components lose application of
B will own the cake because he was the one who made it
making up a new their identity labor (may form
(or transformed the items into one material) but he will
thing one thing or more
have to pay A the value of the ingredients.
but the form is
change); you
If the material is more material than the transformed thing
employ labor (like
or is of more value, its owner may:
a stone become a
1. Appropriate the new thing to himself after paying
statute or the
the indemnity for the value of the work
ingredients
2. Demand indemnity for material.
become a cake)
The accessory Co-‐ownership The accessory
Example: The paint is expensive. The paint is for canvass
follows the results. But there follows the
but it was used to paint the chair. The owner of the paint
principal is an exception principal
can appropriate the chair for himself after paying indemnity
ha.
for the work or he may demand indemnity for the material.
Each component The things mixed The new object
So he may either get back the material (the finished
retains its own or confused may retains or
product) or he can ask for indemnity.
nature (like the either retain or preserves the
lead on the tank, lose their nature of the
If he is in bad faith (he referring to: the person who
you can see the respective nature. original object.
employed work or labor), the owner of the material:
lead after it has
1. Appropriate the chair for himself without paying
been added on
anything to the maker (the one in bad faith)
the tank)
2. Demand the painter (or maker) that he indemnify
him for the material and the damages that he may
have suffered Art. 475. In the preceding articles, sentimental value shall
So either appropriate the thing to himself without paying be duly appreciated. (n)
damages or ask for indemnity plus damages.
July 9, 2014
BUT the owner of the material cannot appropriate the work
in case the value of the latter, for artistic or scientific Quieting of title is not one of the actions that we have
reasons, is considerably more than that of the material. earlier when we talked about recovery. This is entirely
different from simple recovery of the property or
There is only one provision for specification. Just read lang. possession or ownership.
CASE: The provisions that give us the requisites for quieting of

title are Articles 476 and 477.
Aguirre vs. Pheng: When X owned the tank, it was only
worth P100. Leonora made improvements on the tank and Art. 476. Whenever there is a cloud on title to real
sold it for P14,500. Let’s go back to the rule. property or any interest therein, by reason of any
In specification, you apply work to transform thing of a instrument, record, claim, encumbrance or proceeding
different kind. Diba dapat adjunction with whatever which is apparently valid or effective but is in truth and in
materials were used to improve the tank so I don’t know fact invalid, ineffective, voidable, or unenforceable, and
why the SC used specification. may be prejudicial to said title, an action may be brought
Leonora claimed here that she spent P11,000+ for the to remove such cloud or to quiet the title.
improvement of the tank. That is not considered as work or An action may also be brought to prevent a cloud from
labor. Article 474 is applicable in this case. (libog jud siya na being cast upon title to real property or any interest
case ) therein.
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Art. 477. The plaintiff must have legal or equitable title to, alienable. Then this is the kind of land that can be acquired
or interest in the real property which is the subject matter through prescription. For the last 50 years of possession, X
of the action. He need not be in possession of said did not apply registration for that particular parcel of land.
property. Suddenly, Y comes and sues X for ejectment. Here, Y has a
title over the land. If X has produced other evidence to
For a person to successfully file an action for quieting of defeat the TCT or OCT in the name of Y, then there is a
title, he must have a legal or equitable title to or interest in cloud on Y’s title. That is the test to determine the
the real property. This is the first requisite. From this alone, existence of a cloud.
we can say that quieting of title refers only to real
properties, not movables or personal properties. In other words, quieting of title is only available as an
action if there is a cloud upon one’s title.
What kind of action is this quieting of title? Remedial action
– the procedure in order to remove a cloud upon one’s title CASES:
or prevent a future doubt or cloud.
Mamadsual vs. Moson: If it is not proven that the
What is this “cloud” or “doubt”? instrument of X is invalid, there is a possibility that the
According to Article 476 “Whenever there is a cloud on title Mamadsual can be removed from the property. They don’t
to real property or any interest therein, by reason of any have a legal title over the property but only equitable title.
instrument, record, claim, encumbrance or proceeding.” The OCT or TCT of X is strong than Mamadsual’s equitable
(PRICE) title.
a. Proceeding In this case, all the requisites are present. There dd an
b. Record equitable title of the Mamadsual. There is a cloud on the
c. Claim property by reason of X’s instrument (title).
d. Instrument
e. Encumbrance Bucton vs. Gabar: We have here an instrument – Deed of
Absolute Sale which shows that Gabar is the owner of the
If you look at the PRICE, apparently valid siya on its face. property. The title is based on the Absolute of Sale which
Example, you look at an instrument and you can see na it’s shows that Gabar was the one who purchased the land.
valid. Ito yung third requisite. But in truth and in fact, the The title of the case here was an action for specific
PRICE is invalid, ineffective, voidable, or unenforceable, and performance but if you look at the allegation of the
may be prejudicial to said title. This is the fourth requisite. complaint, the SC said that it’s not really an action for
specific performance. It is more of an action for quieting of
REQUISITES: title. All the requisites are present in this case. Since it is not
1. The plaintiff must have a legal or equitable title or an action for specific performance which prescribes in 10
an interest over a real property years, the action has not prescribed because it is a quieting
2. There must be a cloud on title or interest of the of title.
real property by reason of PRICE (proceeding, Why did it not prescribe? Bucton was in possession of the
record, claim, instrument or encumbrance) property. Why did the SC said that the action does not
3. The PRICE is apparently valid on its face prescribe if the plaintiff is in possession? You do not have to
4. The PRICE is invalid, ineffective, voidable, or avail of the preventive measure. You can still wait until
unenforceable your title is disturbed. As long as you are in possession of
5. The PRICE may be prejudicial to said title. the property, then you can stay there. If you don’t have a
TCT or OCT, then that’s fine. If your possession is
How do you know if there is a cloud over your property? questioned, then you file the action to quiet the title if
You are the plaintiff here ha. Check this test: there is an equitable or legal title.
Let us say X sued for ejectment on the strength of PRICE,
does X need another evidence for his action? Sapto vs. Fabiana: Sapto filed an action for recovery of
 If YES, then there is a cloud. possession because Fabiana was in possession. Fabiana
could either use as defense that the property was sold to
Sa example above, X has been in possession of a parcel of her or compel Sapto to execute the necessary document –
land for almost 50 years. The land he occupied is a action for specific performance (In Civil Procedure, this is
government registered land which is disposable and called the counterclaim.) In the counterclaim, Fabiana is
now the plaintiff.
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44
There was a deed of sale that was executed. It was only

requisite is that the title of Coronel is prejudicial to the
after 20 years that Fabiana filed an action for specific
equitable title of M brothers. If it is proven to be valid and
performance in a form of counterclaim. The question here
effective, then the M can be removed from the property.
is: Has the action prescribed? No. The action here is not for
The counterclaim of M here is an action to quiet title. The
specific performance but really for quieting of title.
next issue is whether or not the action has prescribed.
Let’s go to the requisites:
According to the SC, “no” as long as the plaintiff is in
1. Fabiana has an equitable title over the land since it
possession of the property.
acquired ownership over the property through
Another example of equitable title is ownership through
delivery (She purchased the purchased from Sapto
succession like what we have in this case. Although the title
and took possession of the property)
was registered under the name of Coronel, the M brothers
2. There exist a cloud or doubt – the TCT is still in the
have inherited the 1/3 portion so that is already equivalent
name of Sapto
to equitable title. They can already quiet the title because
3. The TCT is valid on its face because it is issued by
of the cloud – the TCT registered in the name of Coronel for
the Register of Deed
the entire property.
4. In truth and in fact, the TCT is ineffective
5. The cloud is prejudicial to Fabiana because if
Pingol vs. CA: Although the action here was denominated
proven that the TCT under the name of Sapto is
as one for specific performance, it is considered as quieting
valid, then it could cause the recovery of Sapto
of title. All the requisites for quieting of title are present.
over the parcel of land
Possession is a continuing right. The owner of the real
What are the principles that we have discussed so far? property has the continuing right to remove the cloud
over his title. An action to quiet title of one’s property is
 Even if the action is titled differently, if the
imprescriptible (as long as the plaintiff is in possession).
requisites for quieting of title are present in the
body, then the action is treated as quieting of
Heirs of Olviga: We see here tacking of possession. One can
title.
tack possession of his predecessors-‐in-‐interest. The action
 Possession for a number of years required of a
here was titled an action for specific performance but the
parcel of land is already considered as equitable
action is really one for quieting of title because all the
title.
requisites are present in this case.
 Sale + delivery of property to the plaintiff even if
The cloud in this case is the title in the name of Olviga. It is
he cannot have TCT or OCT to the property, as long
not only ineffective but also invalid because it was acquired
as there is a receipt, a Deed of Sale or anything
through fraud. (Unlike in the cases discussed wherein the
that would show that the purchase price was paid
title is partly valid but ineffective lang in the sense that the
and there is delivery, it’s enough na for the first
area registered is not really included in the title).
requisite to be complied with.
 The cloud is either a PRICE. It’s not a “because”. Secuya vs. Vda. De Selma: Secuya’s action of quieting of
 If the plaintiff is in possession of the property, the title was not proper. The first requisite is missing. The
action does not prescribe. Even if the action was plaintiff or the proper claimant has not legal title or
filed beyond 20 or 30 years, okay lang. The SC said equitable title. There is no mode of transfer of ownership.
that the plaintiff can wait until his possession is An agreement to occupy the property does not mean
disturbed, as long as he has a legal or equitable transfer of ownership. P, not being an owner, could not
title. transfer ownership to Secuya. Therefore, it was not proven
that they have equitable title over the property so the
July 10, 2014 action to quiet title will not prosper.
Continuation of the CASES (Quieting of Title): Metrobank vs. Alejo: An action for quieting of title is filed
only when there is a cloud. In this case, the judgment
Coronel vs. IAC: What is the equitable title here? The 1/3 cannot be considered a cloud over Metrobank’s title. Take
portion was acquired by the M brothers. There exist a cloud note that judgment is not among those provided for under
on the equitable title of the M brothers. The TCT was Article 476 (PRICE). You cannot consider the judgment of
apparently valid because it was registered on the ROD but another court a cloud over one’s title.
in truth and in fact, it is ineffective because only 2/3 belongs Does Metrobank have a title? Yes, an equitable title to the
to Coronel while the 1/3 to the M brothers. The last property because of the mortgage. Unfortunately, there is
algene c.
45
no cloud. What is now the solution of Metrobank?

Clado-‐Reyes vs. Spouses Limpe: What did the Reyeses
Annulment of judgment.
presented? The Pagpapatunay. Did they prove that Garcia
In Civil Procedure, you will learn that there are two reasons
was the owner of the property? No.
for annulment of judgment: lack of jurisdiction and extrinsic
The first requisite here is missing. Reyes, the plaintiff, has
fraud. Metrobank was not given an opportunity to be heard
no legal or equitable title. The Pagpapatunay document
– that was a form of extrinsic fraud. When the judgment
was not enough.
has been rendered, Metrobank has already started the
Allegations are not enough. When you talk about equitable
extra-‐foreclosure proceeding. Take note of this case.
title, you have to show some semblance of ownership. You
must show how you acquired the ownership. You may not
Portic vs. Cristobal: Why is it that Portic still have equitable
be the registered owner of the property but you own the
title to the property when it has been sold to Cristobal and
property by virtue of prescription for the number of years
the title has been transferred to Cristobal? Why is requisite
required, by virtue of a Deed of Sale and the property was
number one present to make the action for quieting of title
delivered, by virtue of succession, etc.
to prosper?
In this case, Reyes was not able to show equitable title.
In other cases that we have discussed, Deed of Absolute
Sale, if still unpaid and the property has been delivered,
Bank of Commerce vs. San Pablo: All of the requisites for
ownership is automatically transferred to the buyer. But if
quieting of title are present. Same situation lang with what
the document entered into is MOA where it states that
was discussed in other cases.
“Ownership is not transferred to the buyer until full
payment is made,” that is in a nature of a contract to sell.
Philville vs. Bonifacio: Even if the four requisites are
Portic entered into a Deed of Absolute Sale with Alcantara.
present, the fifth requisite is not present so the action for
Portic acquired ownership because of delivery but he was
quieting of title is not proper. The title here is not
not able to pay the full price so SSS foreclosed the
prejudicial because the xxx do not cover the same
property. So both Portic and Alcantara have decided to sell
property.
the property to Cristobal who would pay the SSS in
When we talk about quieting of title, the property involve
instalment. But there was a provision in the MOA (check
must be the same, hindi adjacent lot or one belonging to
second paragraph) and since Cristobal was not able to pay
another.
the full price, then he did not acquire ownership over the
property.
Art. 476. Whenever there is a cloud on title to real
Therefore, Portic has the equitable title required to file an
property or any interest therein, by reason of any
action to quiet title. In this case ha, it is now Cristobal who
instrument, record, claim, encumbrance or proceeding
has the TCT. Check the requisites.
which is apparently valid or effective but is in truth and in
fact invalid, ineffective, voidable, or unenforceable, and
Calacala vs. Republic: The first requisite for quieting of title
may be prejudicial to said title, an action may be brought
was not present. The TCT is now in the name of Republic so
to remove such cloud or to quiet the title.
there is no legal title now. For equitable title, it also does
An action may also be brought to prevent a cloud from
not exist because their possession over x number of years
being cast upon title to real property or any interest
involve a land registered in the Torren’s system. Ownership
therein.
here was lost.
You will learn when you reach your Crim Pro that there is a
bail bond. The Calacalas lent their title to some guy who is Art. 477. The plaintiff must have legal or equitable title to,
accused of a crime. In order for the guy to be released, he or interest in the real property which is the subject matter
needed to put up a bond so he borrowed the title from of the action. He need not be in possession of said
Calacala but he jumped bail. Under the Rules on Criminal property.
Procedure, the court can render judgment against the bond
/ property. Art. 478. There may also be an action to quiet title or
The Calacalas remained in possession of the property. They remove a cloud therefrom when the contract, instrument
had no idea about the redemption period, etc. Calacala was or other obligation has been extinguished or has
at fault but there was also negligence from the part of the terminated, or has been barred by extinctive prescription.
court officials but the thing is that the action of Calacala is Art. 479. The plaintiff must return to the defendant all
not proper. They cannot file for quieting of title. benefits he may have received from the latter, or
reimburse him for expenses that may have redounded to
algene c.
46
the plaintiff's benefit.

In the absence of the contract between parties, the special
Art. 480. The principles of the general law on the quieting legal provisions will govern like Article 148 of the Family
of title are hereby adopted insofar as they are not in Code.
conflict with this Code.
If we don’t have a special legal provision that will govern
Art. 481. The procedure for the quieting of title or the the particular co-‐ownership, then the Civil Code provisions
removal of a cloud therefrom shall be governed by such on Co-‐ownership will apply.
rules of court as the Supreme Court shall promulgated.
Requisites of co-‐ownership:
Art. 482. If a building, wall, column, or any other 1. Plurality of subjects – there is more than one
construction is in danger of falling, the owner shall be owner (A, B and C owns one property)
obliged to demolish it or to execute the necessary work in 2. Singularity or unity of object – there is only one
order to prevent it from falling. thing owned by the A, B, C
If the proprietor does not comply with this obligation, the 3. Recognition of ideal share – means that A
administrative authorities may order the demolition of the recognizes the fact that he is not the only owner of
structure at the expense of the owner, or take measures the thing and that it is co-‐owned by B and C
to insure public safety. (389a)
Sources of co-‐ownership:
Art. 483. Whenever a large tree threatens to fall in such a 1. Law – What is expressly provided for by law; If two
way as to cause damage to the land or tenement of people are living together as husband and wife and
another or to travelers over a public or private road, the both have legal impediment to marry, then they
owner of the tree shall be obliged to fell and remove it; are presumed to be the co-‐owners of what they
and should he not do so, it shall be done at his expense by have (Family Code)
order of the administrative authorities. (390a) 2. Contracts – The most popular source of co-‐
Note: Articles after 478 were not discussed. ownership; Refers to agreement between parties
to enter into co-‐ownership
Let us now go to co-‐ownership. 3. Chance – One may acquire co-‐ownership for a very
short period of time (Example: Finding treasure in
Title III – Co-‐ownership a land belonging to another, both own the
treasure until they divide)
Art. 484. There is co-‐ownership whenever the ownership 4. Occupation
of an undivided thing or right belongs to different 5. Succession – This is also a very popular way of
persons. creating co-‐ownership. (Example: X dies intestate
In default of contracts, or of special provisions, co-‐ leaving a house with 10 children. All the 10 children
ownership shall be governed by the provisions of this will be the co-‐owners.)
Title. (392)
Characteristics: (similar to requisites)
There is co-‐ownership when the property involved in 1. There must be more than one subject or owner
undivided or whole owned by different persons or entities. 2. There is one physical whole divided into ideal
(undivided share) – just because there is co-‐
What governs co-‐ownership? (Hierarchy) ownership doesn’t mean that A owns 100% of the
1. Contracts – agreement between parties property and B owns 100% of the same property; A
2. Special legal provisions and B here have ideal shares so A could own 35% or
3. Provisions of the title on co-‐ownership B owns 65% but the ownership is not definite ha
like if there is a parcel of land, the metes and
If you and your seatmate co-‐owns the property, what will bounds are not yet determined
govern your co-‐ownership? The contract or agreement 3. Each ideal share is definite in amount, but is not
between A and B. (Example: A and B purchase one parcel of physically segregated from the rest
land and they will agree that A will own 60% while B will 4. Regarding the physical whole, each co-‐owner must
own 40% or they will agree on the mode of using the respect each other in the common use, enjoyment
property.) or preservation of the physical whole – if the thing
algene c.
47
is owned in common, then the usage, enjoyment

3. From the viewpoint of the rights of the co-‐owners:
or preservation is also in common
a. Tenancy in common
5. Regarding the ideal share, each co-‐owner holds
b. Joint tenancy
absolute control over the same – Example: A owns
40% of the parcel of land. The land owner has the
CASES:
right to enjoy, dispose and recover. As to the
enjoyment, they can enjoy in common but they
Spouses Si vs. CA: Is it possible to have three separate and
cannot dispose the shares.
distinct parcels of land in one title? Yes, as illustrated in this
6. A co-‐owner is the full owner of his part, the fruits
case.
and benefits thereof – Example: There is a business
If in the OCT, there is only one set of number, then there is
co-‐owned by A, B and C. If the business is lease of
only one parcel of land registered. But if you see three set
property, then A owns 35% of the civil fruit while
of numbers, just like what we have in this case, each and
the other 65% is owned by B
every parcel of land donated to the three children were
7. It is not a juridical person – Co-‐ownership has no
already specifically identified (like its metes and bounds
legal personality so it cannot be sued and be a
because of the technical descriptions.)
plaintiff
It is possible for a parent to single a single lot with three
8. A co-‐owner is in a sense a trustee for the other co-‐
children and donate them separately. The procedure is you
owners
hire a surveyor to make a subdivision plan. The plan will be
submitted to the Bureau of Lands. The Title may only be
July 12, 2014
one but there were three lots involved so there is no co-‐
ownership.
We have already started our discussions in ownership. In
Now, if one of the co-‐owners sells his property to another...
your book, there are distinctions between co-‐ownership
Under the provisions of the Civil Code (1620 onwards), we
and ordinary partnership:
have what we call right of redemption by a co-‐owner.
Co-‐ownership Ordinary Partnership
So if we have A, B and C as co-‐owners then A wanted to sell
No legal personality With legal or juridical
the property. B and C have the priority.
personality
 How do you differentiate redemption and pre-‐
Created by contract or by Created only by contracts –
emption? Right of pre-‐emption: no sale yet, right to
other things (Check: sources one cannot accidently make
prevent the co-‐owner from selling to third parties
of co-‐ownership like a partnership, there is really
(each co-‐owner has the right to pre-‐empt the sale
succession, etc.) an agreement to enter into
and buy the property to sell)
a partnership
 Right of redemption: there is already a sale; if the
Purpose is collective Purpose is profit or to earn
property has already been sold to another, the co-‐
enjoyment money
owner can buy it or redeem it from the third party
*Check the book for the distinctions.
Crisostomo Armada sold his property to Sy so the two
siblings wanted to exercise their right of redemption
We will see later that there are co-‐ownerships created by
claiming to be co-‐owners. Did this right exist?
succession. We have testate and intestate succession.
No. They are no longer co-‐owners. They become individual
When a person dies and he leaves his one and only parcel of
owners of their own parts. Do not ignore the provision of
land to his 5 children, all 5 become the co-‐owners of the
Articles 1620 and 1623. These are related to co-‐ownership.
property.
Articles 1620 and 1623 of the Civil Code:
What are the kinds of co-‐ownership?
Art. 1620. A co-‐owner of a thing may exercise the
1. From the viewpoint of the Subject Matter
right of redemption in case the shares of all the
a. Co-‐ownership of the thing
other co-‐owners or of any of them, are sold to a
b. Co-‐ownership of the right – undivided right to
third person. If the price of the alienation is grossly
play golf in a golf club
excessive, the redemptioner shall pay only a
2. From the viewpoint of source
reasonable one.
a. Contractual co-‐ownership – brought about by
Should two or more co-‐owners desire to
agreement
exercise the right of redemption, they may only do
b. Non-‐contractual co-‐ownership – brought
so in proportion to the share they may respectively
about by succession, law, etc.
have in the thing owned in common. (1522a)
algene c.
48
Balus vs. Balus: The property here was foreclosed because

Art. 1623. The right of legal pre-‐emption or of failure to settle the loan. The mortgagor lost ownership
redemption shall not be exercised except within of the property when the purchaser during the public
thirty days from the notice in writing by the auction consolidated the title of the property to his name.
prospective vendor, or by the vendor, as the case The bank became the owner of the property and the two
may be. The deed of sale shall not be recorded in siblings purchased the property. It is not redemption
the Registry of Property, unless accompanied by because it was done after the redemption period. So it’s
an affidavit of the vendor that he has given written purchase.
notice thereof to all possible redemptioners. There is no source of co-‐ownership here. They did not enter
The right of redemption of co-‐owners into contract nor acquire it by virtue of succession. The
excludes that of adjoining owners. (1524a) father of the siblings lost ownership of the property.
Insofar as X is concerned, he cannot claim to be the co-‐
Mercado-‐Fehr vs. Fehr: Here we have co-‐ownership created owner thereof.
by law. Bruno and Elsa lived together without legal
impediments to marry one another. They acquired Difference between Fangonil and Balus cases:
properties so the property is governed by the rules on co-‐  In Fangonil, Carmen was able to redeem the
ownership. property within the one year redemption period.
Therefore, the ownership by the Fangonil spouses
Ocampo vs. Ocampo: This is a co-‐ownership allegedly was not lost. When the Fangonil spouses died,
created by succession as claimed by the Ocampo siblings. their heirs became the co-‐onwers. Whatever
They claimed that the property belongs to their parents Carmen to spent in redeeming the property… she
and that as the children, they are no the co-‐owners of the can ask for reimbursement from her siblings.
property.  In Balus, the property was not redeemed within
The SC said that it is not enough that there are siblings, the one year redemption period. Therefore, the
parents and property. One must prove that the property highest bidder (or purchaser) during the public
belongs to their parents. In this case, they were not able to auction was able to consolidate its title and that’s
prove that such belong to their parents. the time that the ownership of the mortgager is
With respect to Fidela who donated the property, they entirely lost.
were able to trace back from whom the title came from,
who sold it and how it was sold… until how it came to Pascual vs. Ballesteros: We have here a transfer certificate
Fidela and then how she donated it to Belen. of title in the names of A, B and C. D inherited the lot from
In this case, we have the matter of evidence – Who has the A and E inherited the lot from B. So D and E becomes the
stronger evidence? The one who claims that there is co-‐ co-‐owner with C.
ownership? Or the one who is in possession. There is co-‐ownership here. Even if we have here the
The SC said that even if co-‐ownership can be created by original owners then the successors, they are all considered
succession, it must be shown and proved that the property as co-‐owners of that one lot.
is owned by the decedent in order for the heirs to acquire Under Article 1620 and 1623 of the Civil Code, a co-‐owner
it through succession. has the right of pre-‐emption or redemption. Right of first
refusal: If a co-‐owner wants to sale an undivided portion of
Herrera vs. Fangonil: There’s no doubt that the Fangonil the property, then the other co-‐owners have the right to
spouses own the property. They mortgaged the properties refuse first.
and they were not able to pay the monthly installments so What is the legal procedure? According to Article 1623, The
the property was mortgaged. The property here was right of legal pre-‐emption or redemption shall not be
redeemed only by Carmen (daughter). Just because exercised except within thirty days from the notice in
Carmen was the one who paid, she does not become the writing by the prospective vendor, or by the vendor, as the
absolute and full owner of the property. case may be. Let us say D, E and C are co-‐owners and C
When she redeemed the property, the ownership of the want to sell the property, C has to inform D and E that he is
Fangonil spouses was not lost. Therefore, as the planning to sell his 1/3 undivided share. If D and E do not
redemptioner, her siblings are now indebted to her for the respond within a 30-‐day period, then that’s the only time
redemption price. BUT they are still co-‐owners of the that C can sell the property to the third parties.
properties they inherited when their parents died. Let us say that the property is sold to the third parties
without informing the co-‐owners then, the law provides
algene c.
49
that: The deed of sale shall not be recorded in the Registry

Rule 3: The portions belonging to the co-‐owners in the co-‐
of Property, unless accompanied by an affidavit of the
ownership shall be presumed equal, unless the contrary is
vendor that he has given written notice thereof to all
proved.
possible redemptioners.
If C has already sold the property to F, before F can be
A perfect example for equal co-‐ownership is intestate
registered as the owner of the property in the Registry of
succession. All the heirs own equal shares on the estate.
Deeds, there must be an affidavit executed by C that he has
Yung sa “unless the contrary is proved,” ang example is the
given due notice to all possible redemptioners – D and E
provisions on testate succession because there is a will
(the co-‐owners).
here.
In this case, Margarita sold her undivided share to Pascual
without informing her co-‐owners. Therefore, the other co-‐
CASES:
owners has the right of redemption. The 30-‐day period did
not commence to run if there is no proof that the vendor
Jimenez vs. Fernandez: The SC said that if it’s not proven
informed her co-‐owners of the sale. Ballesteros, the co-‐
that Melicia Jimenez is the daughter of Carlos, then Melicia
owner, may redeemed part of the land sold to spouses
cannot be considered as an heir of Carlos so she cannot
Pascual.
also be considered as a co-‐owner.
What happened was that there was an OCT here in the
Art. 485. The share of the co-‐owners, in the benefits as
names of Carlos and Sulpicia. When Carlos died, the TCT
well as in the charges, shall be proportional to their
was transferred entirely in the name of Sulpicia Jimenez. All
respective interests. Any stipulation in a contract to the
the time, while this was happening, Melicia was occupying
contrary shall be void.
the property for quite some time. Melicia then sold the
The portions belonging to the co-‐owners in the co-‐
property to Teodora.
ownership shall be presumed equal, unless the contrary is
First issue: Did Melicia acquire co-‐ownership through
proved. (393a)
succession? NO. It was not proven that she is the daughter
of Carlos.
Illustration: A, B and C are co-‐owners. Their shares:
Second issue: Did Teodora acquire co-‐ownership of
 A owns 40%
property with Sulpicia through prescription when the lot
 B owns 30%
was sold by Melicia to her. No. The SC said prescription
 C owns 30%
does not lie over property that was already registered.
Ownership through prescription can only be acquired if the
Rule 1: The co-‐owners shall share the benefits (income)
property is an unregistered land.
and charges (expenses) in proportion to their respective
In this case, there was already an OCT in the name of Carlos
interests.
and Sulpicia and then after Carlos’ death, in the name of
-‐ If there are expenses, A shall share 40%, B and C Sulpicia.
shall share 30% for the total expenses. The same
applies to expenses. Art. 486. Each co-‐owner may use the thing owned in
common, provided he does so in accordance with the
Rule 2: The parties cannot agree that the share of the co-‐ purpose for which it is intended and in such a way as not
owners in the benefits and charges will not be to injure the interest of the co-‐ownership or prevent the
proportional. other co-‐owners from using it according to their rights.
The purpose of the co-‐ownership may be changed by
Illustration: The co-‐owners have agreed that if there is
agreement, express or implied. (394a)
profit, A will get 40% while B and C will get 30% each. At the
same time, the contract also include a stipulation that if
Let’s focus on co-‐ownership created by agreement or
there are expenses, A will contribute 10%, B for 50% and C
contract. Look at the intention of the co-‐owners.
for 40%. This is not allowed even if the parties have entered
into contract. This time, the contract will not prevail.
So if the co-‐owners A, B and C buy a car and they agree na
According to Article 485, such contract is void.
they will use it for road trips, then that’s the purpose. Their
purpose is not to earn profit but to enjoy the car or use it.
The law says that the benefits and charges shall be in
proportion to your contribution in the co-‐ownership.
Can A use the car for a taxi in case B and C will not use the
car? According to Article 486, each co-‐owner may use the
algene c.
50
thing owned in common but it says that “so in accordance

ejectment, then only A will be evicted. (You will learn later
with the purpose for which it is intended.” So obviously A
in Civil Procedure that B and C are indispensable parties.)
cannot use it as a taxi because it was not the intention of all
the co-‐owners.
Summary:
-‐ If the case will be filed by the co-‐owners: Any one can
The general rule is that: Each co-‐owner may use the thing
file the action for ejectment
owned in common.
-‐ If the case will be filed against any of the co-‐owner,
the action for ejectment will only affect the
There are conditions and limitations on the use of the co-‐
defendant-‐coowner
owned properties:
1. The co-‐owner can only use the property in
Art. 488. Each co-‐owner shall have a right to compel the
accordance with the purpose for which it is
other co-‐owners to contribute to the expenses of
intended
preservation of the thing or right owned in common and
2. The co-‐owner can only use the property in such a
to the taxes. Any one of the latter may exempt himself
way as not to injure the interest of the co-‐
from this obligation by renouncing so much of his
ownership
undivided interest as may be equivalent to his share of the
3. The co-‐owner can only use the property as not to
expenses and taxes. No such waiver shall be made if it is
prevent the other co-‐owners from using it
prejudicial to the co-‐ownership. (395a)
according to their rights (ex: if A, B and C owns a
common toilet, A cannot stay at the toilet for the
whole day and prevent B and C from using the Article 488 talks about expenses for preservation –
toilet) expenses incurred to ensure that the property does not
deteriorate or that it is not taken by the government.
The purpose of the co-‐ownership may be changed by
agreement, express or implied. So A, B and C can always Co-‐owners A, B and C have the obligation to pay for their
change the purpose of the co-‐ownership. expenses according to their proportionate share.
Example: If A and B bought a house to use as a resident for Let’s say they own a building together. Tapos the roof of
all. A lived there but B did not. B cannot compel A to pay the building was destroyed by the typhoon. To preserve the
rent because A has the right to use the house for “living in building, they need to spend money for the roof amounting
the house” was the purpose of the co-‐ownership. If the to P100,000. So A has to pay P40,000, B P30,000 and C
purpose is to rent the house out and earn income, and A P30,000 (note: contribution based on the illustration under
lives there, then A has to pay the rent. This time, the Art. 485 – page 49).
purpose of the co-‐ownership is for “renting the house.”
What if C cannot afford the expenses of preservation?
Art. 487. Any one of the co-‐owners may bring an action in He cannot himself from paying by renouncing his undivided
ejectment. (n) interest as may be equivalent to his share of the expenses
and taxes.
Remember the ejectment actions we discussed: forcible
entry, unlawful detainer, accion publiciana, accion Let us say the value of the co-‐ownership is P3,000,000. 30%
reivindicatoria, replevin. of 3M is P900,000 (referring to C’s share in the co-‐
ownership). C here needs to pay P30,000 for the expenses
If A, B and C are the owners of the parcels of land occupied for preservation. (Wala na nagcompute si ma’am kay
by D. A and B are not here in the Philippines. Can C on his confusing.) So the 30% share of C will now become 27%
own file an action to evict or eject D? Yes, under Article 487. nalang siguro. The 3% will go to the co-‐owner who actually
Article 487 is clear that the plaintiff can be any co-‐owner shouldered the portion which should have come from C.
of the property.
So that is called abandonment: A co-‐owner may exempt
Let’s look at the other side of the coin. What if A, B and C himself from the payment of expenses and taxes.s
are the ones who occupy the property belonging to D. All BUT it must not be prejudicial to the co-‐ownership.
co-‐owners live at the land of D. If D sues only A for Remember ha, this does not mean that the co-‐owner is
renouncing his entire share in the co-‐ownership; only a
algene c.
51
percentage of his shareholdings will be renounced in favor

his own. The law says “Repairs for preservation may be
of the co-‐owner who actually paid.
made at the will of one of the co-‐owners.”
When abandonment is not allowed?
The only condition says that: if practicable, the co-‐owner
No such waiver shall be made if it is prejudicial to the co-‐
must first notify his co-‐owners of the necessity for such
ownership.
repairs.
Example: X and Y co-‐own a house then a portion of the
Does he have to inform the other co-‐owners for the
house needs repair, otherwise the it will collapse. Before
expenses to improve or embellish the thing? Yes. Because
expenses are incurred, X cannot say that he cannot pay the
the law says “Expenses to improve or embellish the thing
expenses if Y has no enough money to cover the expenses.
shall be decided upon by a majority as determined in Article
Why? Because the house will collapse if repairs will not be
492.”
made. Hence, it is prejudicial to the co-‐ownership. A co-‐
owner cannot renounce in advance.
Again, only one of the co-‐owner is required to make the
necessary repairs. However, if the expenses are not really
You cannot waive future expenses if it will be prejudicial to
for preservation but for improvement or embellishment,
the co-‐ownership. Abandonment refers to existing
then it is not only up to one co-‐owner. He needs to get the
obligations or those which are paid for by the co-‐owner.
financial majority of all the co-‐owners which is 51%.
There are also times when repairs will be made… but it is
Let’s go directly to Article 492.
utang sa hardware. What if A and B already paid the
hardware and C did not pay the P30,000. Can C renounce
Art. 492. For the administration and better enjoyment of
his share of 3% to the owner of the hardware? According to
the thing owned in common, the resolutions of the
Paras, in renouncing in favor of the creditor (hardware),
majority of the co-‐owners shall be binding.
one needs the consent of the creditor. So C needs to ask if
There shall be no majority unless the resolution is
the hardware wants to become the co-‐owner of the
approved by the co-‐owners who represent the controlling
property (3% share). That is the effect eh if C renounces his
interest in the object of the co-‐ownership.
share so it’s in a form of dacion en pago. But if you are the
Should there be no majority, or should the resolution of
hardware owner, why will you agree diba?
the majority be seriously prejudicial to those interested in
the property owned in common, the court, at the instance
Renunciation cannot be implied. According to Paras, if
of an interested party, shall order such measures as it may
there is only mere refusal of the co-‐owner to pay his share,
deem proper, including the appointment of an
that is not tantamount to renunciation. The co-‐owner must
administrator.
expressly say that he is renouncing, like he needs to say “I
Whenever a part of the thing belongs exclusively to one of
will not pay the taxes and the expenses for preservation. I
the co-‐owners, and the remainder is owned in common,
will renounce my share.”
the preceding provision shall apply only to the part owned
in common. (398)
This is an option given to the owner who does not want to
pay his share.
Resolutions are mentioned here many times. This means
that the co-‐owners need to discuss and resolve as to
Art. 489. Repairs for preservation may be made at the will
whether or not the repairs or improvements should be
of one of the co-‐owners, but he must, if practicable, first
made.
notify his co-‐owners of the necessity for such repairs.
Expenses to improve or embellish the thing shall be
Financial majority: Co-‐owners who represented the
decided upon by a majority as determined in Article 492.
controlling interest in the object of the co-‐ownership
(n)
(There shall be no majority unless the resolution is
approved by the co-‐owners who represent the controlling
Article 489 talks about repairs for preservation.
interest in the object of the co-‐ownership.)
Example: A, B and C are co-‐owners then A and B are not in
When can the court interfere?
Davao. It was discovered by C that the roof was already
1. When the work is done without the financial
blown by the typhoon, then C can conduct the repairs on
majority
algene c.
52
2. If the resolution of the financial majority is

we can own money.” Such is an act of alteration since the
seriously prejudicial to those interested in the
car will forever be a taxi so more or less it’s permanent. It
property held in common – like converting a
also changes the use of the thing owned in common and it
boarding house into a bingo house which will be
prejudices the condition of the co-‐ownership since they can
prejudicial
no longer use it for enjoyment.
The co-‐owners prejudiced by the resolution of the financial
majority can go to court. It says here: at the instance of the
This is an example of an act of alteration which requires the
interested party. Somebody has to go to court, not motu
unanimous consent of all the owners. Note that consent is
propio.
given in two ways:
1. Express – All of the co-‐owners will have to
What can the court do if a co-‐owner asks it to interfere?
contribute or share in the expenses of alteration
1. Order measures as it may deem proper
2. Implied – The effect is only to make the alteration
2. Includes appointment of an administrator
legal or valid but the co-‐owner is not obliged to pay
the expenses
What are examples of acts that are seriously prejudicial to
the rights of the co-‐owners?
Based on example above:
1. Loans that are made without sufficient security
-‐ Express consent: All of them will agree that
(Property is 1M and the loan is only P250,000)
starting August 2014, the car will be converted to
2. Loans are made and the property owned in
taxi Implied consent: A and B agreed that the car
common are given as security
will be converted to a taxi. C opposes. But in
August 2014, C did not complain. Here, there is
Again, for administration and better enjoyment of the
already an implied consent.
property in a co-‐ownership, financial majority is required.
Note: Only the co-‐owner who gave his express consent can
Another kind of expenses that the owner pays is called
be obliged to contribute in the expenses of alteration.
alteration under Article 491.
What are other examples of alteration? Sale, mortgage,

Art. 491. None of the co-‐owners shall, without the consent
loan, construction of a house owned in common, lease of
of the others, make alterations in the thing owned in
real property, any other act to strip ownership. (Everybody
common, even though benefits for all would result
here must give consent).
therefrom. However, if the withholding of the consent by
one or more of the co-‐owners is clearly prejudicial to the
If A, B and C decide to sell the property owned in common,
common interest, the courts may afford adequate relief.
all of them should agree. BUT if A wants to sell his 40%
(397a)
share, then it’s okay because he is the owner of his
Financial majority here is not enough. All of the co-‐owners undivided share. He can only sell his share but not the
specific portion of the property.
must agree because an act of alteration is an act of
ownership.
When is alteration illegal?
What is the act of alteration as it requires the consent of If it is made without the expressed or implied consent of all
all co-‐owners? the co-‐owners.
According to Paras, there are three elements:
1. The change is more or less permanent – not in a What are the effects of illegal alteration?
temporary manner -‐ The owner responsible might lose what he spent
2. A change that changes the use of the thing owned -‐ The co-‐owners may request demolition
in common -‐ He would be liable for losses and damages
3. A change that prejudices the condition of the co-‐
ownership or its enjoyment by others Whatever benefits the co-‐ownership derives from
alteration (even if illegal) shall be enjoyed by the co-‐
Let’s go back to our example wherein A, B and C own a car. owners. But if expenses are incurred, only the co-‐owner
The purpose for buying the car is for the enjoyment of the causing the illegal alteration can be made liable.
co-‐owners. If A says “Let’s just convert the car into a taxi so
SUMMARY:
algene c.
53
1. Article 489: Repairs for preservation of the thing –

ONLY ONE CO-‐OWNER (But there is a condition if
Article 484 case (not in the syllabus): This is a 2004 case.
practicable: the other co-‐owners must be notified)
We have here two brothers who are the registered owner
2. Article 492: Useful improvements, embellishments,
of a parcel of land with 120 sq. m. In that land, one three-‐
administration and better enjoyment – FINANCIAL
door apartment stands. Three doors: 1 for Manuel, 1 for
MAJORITY (51% or controlling interest)
Romulo and 1 for Mina married into Qujinano.
3. Article 491: Alterations of acts of ownership – ALL
The heirs of Quijano filed an action for replevin and
CO-‐OWNERS (UNANIMOUS)
partition against the other brothers contending that he and
his wife Mina is one of the co-‐owners of the land. He
Art. 493. Each co-‐owner shall have the full ownership of
claimed that he has purchased the properties. On the other
his part and of the fruits and benefits pertaining thereto,
hand, Manuel and Romulo said that Quijano is merely living
and he may therefore alienate, assign or mortgage it, and
there by mere tolerance.
even substitute another person in its enjoyment, except
How did the co-‐ownership arise, if ever? Out of the contract
when personal rights are involved. But the effect of the
or agreement of the parties.
alienation or the mortgage, with respect to the co-‐owners,
The SC said that there was a document, a deed of
shall be limited to the portion which may be alloted to him
reconveyance, which was executed by the properties
in the division upon the termination of the co-‐ownership.
Manuel and Romulo saying that Quijano owns 1/3 of the
(399)
property after paying the purchase price but whose name
does not appear in the Deed of Sale.
Example: A owns 40% of the co-‐ownership. He has the full
The admission in a document or contract shows that
ownership of that part and of the fruits and benefits. He
Quijano was also a co-‐owner. This is an example of co-‐
may, therefore, alienate, assign or mortgage it and even
ownership arising from contract.
substitute another person on its enjoyment.
(This was discussed by Atty. Suarez)
Exception: When personal rights are involved
De Guia vs. CA: De Guia and Abejo are the co-‐owners of the
A can mortgage the 40% or sell it. He can also say “I don’t
fishpond. De Guia leased the fish pond for profit. When
want the civil fruits and I assign X to be my substitute.” He
Abejo acquired the other ½ of the fish pond, then he is also
can do all these because he has full ownership over his
entitled to profit. He has the right to collect rent from De
undivided share.
Guia.
Second paragraph provides that: “But the effect of the
From the full text: The Lejano Heirs and Teofilo Abejo
alienation or the mortgage, with respect to the co-‐owners,
agreed to lease the entire fishpond to De Guia. After De
shall be limited to the portion which may be alloted to him
Guia’s lease expired in 1979, he could no longer use the
in the division upon the termination of the co-‐ownership.”
entire FISHPOND without paying rent. To allow De Guia to
continue using the entire fishpond without paying rent
July 15, 2014
would prejudice Abejo’s right to receive rent, which would
have accrued to his ½ share in the fish pond had it been
CASES
leased to others.
Before partition is done by the co-‐owners, they are only
Co Giok Lun vs. Jose Co: There are two brothers in this case.
entitled to their ideal shares.
The other one says he is one of the co-‐owners because they
acquired it through succession while the other says he has
Punsalan vs. Boon Liat: This is an example of a co-‐
the title and other documents to prove his exclusive
ownership arising from occupation where in 22 persons
ownership. The first brother, Lun, was not able to prove
found the fish with the ambergris inside.
that the property was owned by his father. He merely
Question: What if the ambergris are gone na? Ahmad is
alleged that his father brought the property and then went
liable to the other co-‐owners.
back to China. Did the father transfer the property to them
by means of donation? There is no indication.
Difference on De Guia and Boon Liat cases:
Of course, if the property indeed belong to the father, that
 In the De Guia case, Abejo filed an action for
is already automatic. The children can acquire it. Again, Lun
ejectment against De Guia. What is the effect of
was not able to prove that the property belonged to the
filing ejectment against a co-‐owner? You do not
father. On the other hand, Co was able to show the process
get ½ share of the property You merely compel the
how the properties ended up in his property.
other co-‐owner to recognize the co-‐ownership. In
algene c.
54
other words, Abejo now will have the rights that

July 16, 2014
an owner has like the right to use the fishpond,
collect rent or etc.
CASES
 In the case of Boon Liat, the SC mentioned the
same thing: A co-‐owner can file an action of
Sps Cruz vs. Leis: If a co-‐owner X sells the entire property of
ejectment not only against third persons but also
which he is only a 60% share, the sale is valid only insofar as
against a co-‐owner. This case does not have the
to his 60% share. What is a pacto de retro sale? The seller
same facts with the De GUia case. The effect here
can redeem. The effect here is the buyer becomes the co-‐
is different.
owner. The 40% co-‐owners have the right to redeem
The ejectment case filed against Ahmad (the
property within the one year period. If they fail to redeem
owner of 1/22) is for the recovery of the 21/22
within the one year period, then the buyer can consolidate
shares of the ambergris. With respect to
the title of the entire property. Provided that he complied
ambergris, you don’t even have to put the metes
with Article 1607. There must be a judicial order.
and bounds because it’s easy to separate. You can
In this case, there was none. Therefore, the property was
easily get the 1/22 out of the 22/22.
reverted back to the name of Cruz. They will just have to
 In the case of a fishpond, Abejo cannot easily
figure out who actually are the owners now.
remove the fishpond. But in Boon Liat, the 21
The redeeming co-‐owner does not acquire exclusive
others can easily recover their 21/22 over the
ownership over the property. Does this last forever? No.
ambergris.
The redemption of the land "did not terminate the co-‐
Note: There are many kinds of ejectment cases. And each
ownership nor give her title to the entire land subject of the
ejectment case has a different effect.
co-‐ownership."
Wee vs. De Castro: In this case, the action file is unlawful

Del Campo vs. CA: The Del Campos, as buyers, only became
detainer. Do you need the other co-‐owners of the building
co-‐owners with the Regalado Sr. The sale was only valid as
to file the action? No. It is already enough for one co-‐owner.
to the interest of the seller in the property. The problem is
The SPA is no longer required. Article 487 is very clear of
that Del Campo was already occupying a specific portion of
this point.
the lot.
This is also the principle in the case of Plasabas vs. CA.
The SC said that even though it’s not allowed for a co-‐
owner to alienate a specific portion, the fact that the
Cruz vs. Catapang: One of the co-‐owners here needs to get
particular portion was already occupied by the Del Campos
the consent of the two other co-‐owners because there is an
for so many years (49 years) without the other co-‐owners
alteration here. In alteration, there is a need for the
complaining about it or opposing to the occupation or
unanimous consent of all the co-‐owners.
possession of the Del Campos… Such undisturbed
Implied consent makes an illegal alteration legal. In this
possession had the effect of a partial partition of the co-‐
case, the other co-‐owners were not asked. In fact, Leonor
owned property which entitles the possessor to the
only filed the case three years later only from the time
definite portion which he occupies. In effect, it’s as if a
Catapang encroached xxx.
definite or specific portion was sold to the Del Campos.
Catapang here said that she did not take the possession
This is not what the law provides ha but by the SC to.
through stealth. In fact daw, Norma knows about it so the
Jurisprudence provides for the doctrine for a special
action for forcible entry is not the proper action. But the SC
occasion.
said that Norma said knew about it but the act done by
Catapang was done through alteration so the entry was Sanchez vs. CA: The house in this case is bigger than the 1/6
done through stealth (prescribes in 1 year from the time of portion of the co-‐owner in the co-‐owned lot.
discovery). According to the SC, before partition, a co-‐owner is merely
Consent of only one co-‐owner will not warrant the dismissal an owner of an ideal share, not specific. So whatever part
of the complaint for forcible entry filed against the builder. of the property can be used by such co-‐owner. If the house
The consent given by Norma Maligaya in the absence of the of Sanchez exceeds the 1/6 ideal portion that she owns, it
consent of petitioner and Luz Cruz did not vest upon doesn’t matter because they have not yet partitioned the
respondent any right to enter into the co-‐owned property. property.
Her entry into the property still falls under the classification Therefore, X had no right to demolish that portion of the
“through strategy or stealth.” house of Sanchez that exceeded the 1/6 portion.
Before partition of the land held in common, no individual
algene c.
55
co-‐owner can claim title to any definite portion thereof.

All
algene c.
56
the co-‐owner has an ideal or abstract share in the entire the owner of the first story; and so on successively. (396)
thing or land.
Although assigned an aliquot but abstract part of the Art. 494. No co-‐owner shall be obliged to remain in the co-‐
property, the metes and bounds of petitioner’s lot has not ownership. Each co-‐owner may demand at any time the
been designated. As she was not a party to the Deed of partition of the thing owned in common, insofar as his
Absolute Sale voluntarily entered into by the other co-‐ share is concerned.
owners, her right to 1/6 of the property must be respected. Nevertheless, an agreement to keep the thing undivided
Partition needs to be effected to protect her right to her for a certain period of time, not exceeding ten years, shall
definite share and determine the boundaries of her be valid. This term may be extended by a new agreement.
property. Such partition must be done without prejudice to A donor or testator may prohibit partition for a period
the rights of private respondent Virginia Teria as buyer of which shall not exceed twenty years.
the 5/6 portion of the lot under dispute. Neither shall there be any partition when it is prohibited
by law.
Heirs of Balite vs. Lim: It’s impossible to issue a separate No prescription shall run in favor of a co-‐owner or co-‐heir
title to a co-‐owner. The effect of the selling to Rodrigo by against his co-‐owners or co-‐heirs so long as he expressly or
Esperanza is that he becomes a co-‐owner together with the impliedly recognizes the co-‐ownership. (400a)
other heirs. Definitely, there is no specific portion that is
allotted to Rodrigo. Art. 495. Notwithstanding the provisions of the preceding
The Registry of Deeds did not issue a title to Rodrigo article, the co-‐owners cannot demand a physical division
because Article 493 says that the effect of sale of the of the thing owned in common, when to do so would
portion of the co-‐owned property is to make the buyer a render it unserviceable for the use for which it is intended.
co-‐owner of the other co-‐owners. But the co-‐ownership may be terminated in accordance
with Article 498. (401a)
Metrobank vs. Pascual: In effect, only ½ of the property
was mortgage in the bank. Even if a marriage has been Art. 496. Partition may be made by agreement between
declared null and void and the parties have not liquidated the parties or by judicial proceedings. Partition shall be
their properties, they would still be the co-‐owners of the governed by the Rules of Court insofar as they are
unliquidated properties. consistent with this Code. (402)
Therefore, any alienation by one spouse is an act of
alteration which requires the consent of the other co-‐ Art. 497. The creditors or assignees of the co-‐owners may
owner. take part in the division of the thing owned in common
In this case, Florencia mortgaged the entire property, the and object to its being effected without their concurrence.
mortgaged is only valid as to her ½ share. But they cannot impugn any partition already executed,
unless there has been fraud, or in case it was made
Art. 490. Whenever the different stories of a house belong notwithstanding a formal opposition presented to prevent
to different owners, if the titles of ownership do not it, without prejudice to the right of the debtor or assignor
specify the terms under which they should contribute to to maintain its validity. (403)
the necessary expenses and there exists no agreement on
the subject, the following rules shall be observed:
Art. 498. Whenever the thing is essentially indivisible and
(1) The main and party walls, the roof and the other things
the co-‐owners cannot agree that it be allotted to one of
used in common, shall be preserved at the expense of all
them who shall indemnify the others, it shall be sold and
the owners in proportion to the value of the story
its proceeds distributed. (404)
belonging to each;
(2) Each owner shall bear the cost of maintaining the floor
of his story; the floor of the entrance, front door, common Art. 499. The partition of a thing owned in common shall
yard and sanitary works common to all, shall be not prejudice third persons, who shall retain the rights of
maintained at the expense of all the owners pro rata; mortgage, servitude or any other real rights belonging to
(3) The stairs from the entrance to the first story shall be them before the division was made. Personal rights
maintained at the expense of all the owners pro rata, with pertaining to third persons against the co-‐ownership shall
the exception of the owner of the ground floor; the stairs also remain in force, notwithstanding the partition. (405)
from the first to the second story shall be preserved at the
expense of all, except the owner of the ground floor and Art. 500. Upon partition, there shall be a mutual
accounting for benefits received and reimbursements for
algene c.
57
expenses made. Likewise, each co-‐owner shall pay for

damages caused by reason of his negligence or fraud. (n)
Art. 501. Every co-‐owner shall, after partition, be liable for

defects of title and quality of the portion assigned to each
of the other co-‐owners. (n)
“The only thing standing between you and

your goal is the bullshit story you keep
telling yourself as to why you can't achieve it.”
— Jordan Belfort
algene c.
58
subject the whole lot to the action of

July 22, 2014 his will. But the holding must be
exclusive. As long as the rest of the
Let’s now proceed to our next topic for our second exam property is not adversely possessed
coverage. Possession is defined under Article 523. by another.
Title V -‐ POSSESSION 2. Deliberate intention to possess
Art. 523. Possession is the holding of a thing or the This refers to animus possidendi. If you
enjoyment of a right. (430a) suddenly find a cellphone in your bag
because somebody placed it there, are
When we talk about ownership, ownership can be you in possession? No. You may be holding
exercised over things and rights. Possession is the holding it because it is inside your bag but do you
of a thing and the enjoyment of a right. You don’t hold a have the deliberate intent to possess it?
right, you enjoy it. For one to be considered it possession, he
or she must deliberately intend to possess
What are the rights that you enjoy? Membership in a it. There is a state of mind.
country club, the right to sue. When you enjoy a right, it
means that you possess it. 3. Possession must be by virtue of one’s own right
According to our author, Paras, there are two kinds of When you possess something, you must
possession legally speaking: have at least a right to possession. As in,
1. Possession proper – holding or control of a thing you may be the owner, or the lessee or
(refers to tangible objects) somebody who just borrowed the thing. It
2. Quasi-‐possession – exercise of a right (because a doesn’t matter as long as there is a right.
right is incorporeal) An example is the contract of
commodatum, you will learn this in Credit
Is possession a fact or a right? Transactions.
It is actually a fact. If you’re holding a thing and exercising a
right, it is a fact that you are in possession. BUT from the Let’s go to the viewpoints. According to Paras, right to
moment it exists, certain consequences follow. Thus, possession or jus possidendi is a right or an incident of
making possession also a right. ownership. You are the owner of the thing so you have the
right to possess. Right of possession – you’re not the
What are the requisites or elements of possession? owner but you, by your own right, has the right to possess;
not as an owner but something else.
1. There must be holding or control
How is possession exercised then? Go to the next provision.
What do you mean by this? Holding –
physically. Control – you may not be Art. 524. Possession may be exercised in one's own name
holding it physically but you are in control or in that of another. (413a)
of a thing or in exercise of a right.
As discussed by Paras, what do you mean Possession may be exercised in:
by that “occupancy”? Are we talking 1. One’s own name
about occupation about how to acquire 2. That of another
ownership? No. The first element may be:
a. Actual The example given in the book: A parcel of land owned by
b. Constructive – Example: If you own X. Is X in that parcel of land? Maybe yes, maybe no.
1,000 hectares land, you don’t have to Somebody possesses it for him. If an agent possesses the
hold all of the land physically. It’s land of X to sell for him, the possession by the agent is not
enough that you build your house in a in his own name but that of another who is X. But if X is the
particular area of the lot. It is one in possession of the land, then he possesses it in his
sufficient that the holder is able to own name.
algene c.
59
If we are talking about pure possession alone and not in

What are the ways of possessing in the name another? one’s own name… possession of somebody who is not the
1. Voluntary owner in the concept of an owner, this is the kind of
In the example we discussed, it’s possession that will ripen into ownership – through
voluntary on the part of the owner. X, the acquisitive prescription.
owner, allows the agent to possess by
virtue of an agreement. What are the acts that would make one seem to possess in
2. Necessary the concept of an owner?
Example: Administrators are in possession  If you build a house in the lot that you are in
of the property they administer; Guardians possession of, is it an act of one who owns a lot?
possess the property of their wards. They Of course. But if you just go there and just look at
possess not because they want to or there it from time to time, well it’s not.
is an agreement but because it is a  If you plant trees and harvest the crops – this is
necessary effect of their roles as guardians another act which shows possession in the
or administrators. concept of an owner.
3. Unauthorized  It also includes payment of realty taxes of real
You took up Negotiorum gestio in your properties.
Obligations & Contract.
On the other hand, we have: “in that of the holder of the
Let’s go to the example… A is the landlord. B is the tenant. thing or right to keep or enjoy it, the ownership pertaining
C is the intruder. Can A, the landlord, who is not in actual to another person.”
possession, file an action for forcible entry against the
intruder? Who can file an action forcible entry? Prior Here, the one who is in possession is fully aware or
possessor. recognizes that he is not the owner… Although he is the
one who is in possession and who is enjoying the right.
If the intruder manages to take out the tenant from the
land, can the landlord file an action for forcible entry Examples:
against the intruder?  Tenants
Yes. He is in possession of his property through his tenant.  Lessee
The tenant possess in the name of the landlord so A can be  Usufructuary
considered as one in prior possession.  Bailee in commodatum (contract of borrowing: the
bailor is the lendor; the bailee is the borrower)
Art. 525. The possession of things or rights may be had in In commodatum, the borrower recognizes
one of two concepts: either in the concept of owner, or in that he is not the owner of the thing. He is
that of the holder of the thing or right to keep or enjoy it, aware that he is only borrowing the thing.
the ownership pertaining to another person. (432) He only possesses the thing, holds it and
enjoys the right, but he recognizes that he
This is different from Article 524 ha. In Article 525, this is in is not the owner.
the concept of an owner or in that of a holder.
Take note that the possession of the thing which is owned
If one possesses in the concept of an owner, it does not by another should be distinguished from the right of a
necessarily follow that he is the owner. He possesses the lessee.
property as if he is the owner. This is one, who whether in For example, if a lessee possesses an apartment
good faith or bad faith, claims to be or acts as if he is the unit, he definitely possesses it in the concept of a
owner. holder. But his right as a lessee of that apartment
is owned by him, in the concept of owner.
He is in bad faith if he knows that he is not the owner and
he acts as if he is the owner He is in good faith if he doesn’t So, make a distinction between POSSESSION OF THE THING
know that he is the owner and he thinks or acts that he is ITSELF and RIGHT TO ENJOY THE THING OR BENEFIT FROM
the owner. When one possesses in the concept of an IT.
owner, one does not recognize ownership of another.
algene c.
60
We have another aspect.. Degrees of possession or

Possessor in Good Faith – who is not aware that there
hierarchy of possessors.
exists in his title or mode of acquisition any flaw which
1. Mere holding
invalidates it
 The lowest
 Without having any right whatsoever So he thinks that he is the owner but there is something
2. Juridical possession
that invalidated his ownership… There was something
 Equivalent to possession in the wrong with either the title or the mode of acquisition or
concept of a holder transfer of ownership. That is a possessor in good faith.
 One has juridical title but not that of
an owner Par. 2: He is deemed a possessor in bad faith who possesses
 Lessee, Bailee, Etc. in any case contrary to the foregoing.
3. Real possessory right
 Possession with just title When one is in bad faith, he absolutely knows that there is
You have to understand this concept of just title. a flaw in his title or mode of acquisition but he pretends as
You really have to know what it means. What is just title? It if he is the owner of the thing.
is when you receive or possess something and there is a
mode of acquiring ownership but the one who passed on How do you know that a person is not aware? Can you tell
the alleged ownership is not the owner. There is mode. by looking at the face of the person that he is not aware in
In property, Book 3, we will discuss the modes of the flaw of his title or mode? No, you cannot. It is a
acquiring ownership. Again, a mode is different from title. question of intention. It is an evidence of external sign. This
You already discussed this in Sales. Sale is a title but the is the same with bad faith. There are so many people who
mode is delivery. There are certain contracts or are in bad faith walking around but you cannot tell who is in
transactions that are modes and titles at the same time like bad faith because their intentions are inside their heads.
succession or donation.
For example, X donates a car to Y and Y receives it Again, Good faith – you’re not aware of any flaw in your
in good faith and he drives around in that car. Little did he title or mode of acquisition. BUT not being aware is one
know that the one who donated the car was not the owner thing and not checking is another. So, if circumstances exist
of the car. Y does not have title or dominion. Y only has just that require a prudent man to investigate, he will be in bad
title over that particular car. faith if he does not investigate.
Why? The spring can never rise higher from the
source. If the one who allegedly transferred ownership to Y Example: You buy a parcel of land in the mountains. Ang
was never the owner in the first place, how can Y acquire itsura ng land is parang timberland. You’re shown a TCT
ownership even though there is a mode of acquiring that looks real. So ikaw, you bought it. You occupied it and
ownership. planted, etc. Are you considered in good faith? Of course
4. Possession with Title of Dominion yes. But perhaps, if everyone around you (your neighbor/s)
 Highest form has no TCTs tapos ikaw lang ang meron, of course you have
 Possession by the owner himself to investigate. If you don’t investigate, somehow at the
back of your mind, it would appear that you are aware that
There are many types of good faith. We have the good faith the land doesn’t really have a title. So you say you’re an IPV
that we always talk about but the good faith under Article or an innocent purchaser for value. The same idea.
526 is different. We are only talking here of: possessor in
good faith. The last part: Mistake upon a doubtful or difficult question
of law may be the basis of good faith.
Art. 526. He is deemed a possessor in good faith who is not
aware that there exists in his title or mode of acquisition What if there’s a law that says that xxx you become the
any flaw which invalidates it. owner of this particular property, etc… xxx Example, I have
He is deemed a possessor in bad faith who a client who have hectares of agricultural land that has
possesses in any case contrary to the foregoing. never been covered by CARP. But now, you are aware that
Mistake upon a doubtful or difficult question of you cannot sell or buy agricultural land if you do not get a
law may be the basis of good faith. (433a) DAR clearance (if you are a buyer) stating that you don’t
own agricultural lands so you can buy 5 hectares. If you are
It is always advisable to memorize this: seller, there must be DAR clearance saying that you only
algene c.
61
own 5 hectares of land. So now, yung client ko has 7 has

of
algene c.
62
the agricultural land and she wants to donate it to her

was no longer unaware. Even if he was aware since 1912
children. So paano na yan? 5 has lang tapos 7 has na yung
that he did not own the land, he will not be considered in
land niya. So I called up the DAR to clarify… What if my
bad faith because facts did not exist at that time that he
client inherited the land when there was no Land Reform
was not unaware that he possesses the land improperly.
Law yet? It’s really doubtful.
So bad faith can still be considered good faith if there are
So what if she donates the property to her children because
still no facts which would show that the possessor is not
the law is malabo. Does that mean that she is in bad faith
unaware. In this case, the SC said that the effects of bad
and that her children are in bad faith? Supposed she made a
faith… A possessor in good faith is entitled to the fruits. A
mistake? The answer is no. It may be the basis good faith if
possessor in bad faith is not.
there is a doubtful or difficult question of law.
From 1912-‐1918, the Court said that A is not required to
Art. 527. Good faith is always presumed, and upon him
return the value of the fruits. It was only in 1918, when he
who alleges bad faith on the part of a possessor rests the
was considered in bad faith. It doesn’t matter even if he
burden of proof. (434)
was, indeed, in bad faith since 1912. He will only be legally
considered in bad faith in 1918.
Rule: Good faith is always presumed. There is no
presumption of bad faith. Therefore, if you alleged bad
faith on the part of another, you have the burden of The receipt of summons is the most common way of
proving the bad faith. Take note, we are talking here of converting good faith into bad faith. But it is not the only
possession in good faith and possession in bad faith. way. Article 528 does not distinguish ha. There is nothing
there that says so. Ang important is “any facts that would
show etc.” Do not forget this discussion because we will
Art. 528. Possession acquired in good faith does not lose
look at another interruption which is not the same with this
this character except in the case and from the moment
one.
facts exist which show that the possessor is not unaware
that he possesses the thing improperly or wrongfully.
Art. 529. It is presumed that possession continues to be
(435a)
enjoyed in the same character in which it was acquired,
until the contrary is proved. (436)
This is another important article. Good faith is presumed,
okay? Supposed you are in possession of a parcel of land This is just a continuation of Articles 526-‐528. Again, until
and it is presumed that you are in good faith. When will no facts exist that would show that the possessor is not
your good faith turn to bad faith? From the moment facts unaware that he possesses the thing improperly or
exist which show that the possessor is not unaware that he wrongfully, then good faith will continue.
possesses the thing improperly or wrongfully.
This is a presumption which is rebuttable by evidences to
Can you give me an example? If you are in possession of the the contrary. In your book there is an enumeration of the
land and you are actually in bad faith, can you be different presumptions of possession.
considered in good faith? If in truth and in fact, you are the  Art. 433. Actual possession under claim of
only one who knows you are in bad faith? You know that ownership raises disputable presumption of
you are not the owner of the land, can you be considered in ownership. The true owner must resort to judicial
good faith? Yes because good faith is presumed unless the process for the recovery of the property. (We
contrary evidence is presented. already took this up)
 Art. 527. Good faith is always presumed, and upon
CASE: In one case… A guy (A) occupied the land from 1912, him who alleges bad faith on the part of a
planted crops and harvested the crops. One day, let’s say possessor rests the burden of proof.
it’s 1918, another guy (B) filed an action for recovery of  Art. 529. It is presumed that possession continues
property against A. A received the summons which is a legal to be enjoyed in the same character in which it was
process. Let’s say in 1930, the court ruled that B is the acquired, until the contrary is proved. (Continuity
owner of the land. of the presumption of good faith)
When will A be considered in bad faith? Only in 1918 when Art. 530. Only things and rights which are susceptible of
he received the summons. When the facts existed that he being appropriated may be the object of possession. (437)
algene c.
63
But did any facts exist which showed that DBP was
This is very easy. Only things and rights which are unaware in the flaw of their title? Was there a flaw?
susceptible of being appropriated may be the object of The taking possession of DBP of the land after one
possession. Meaning what? Only property. year, despite the agreement that the redemption period is
5 years, is that tantamount to bad faith? No, because in
So property of public dominion, res communes, things that extrajudicial proceedings, there is a one year redemption
are beyond the commerce of man, they cannot be the period if the property foreclosed is a real property.
object of possession. According to the law, the redemption period is one year. If
the mortgagor does not redeem within the one year
CASES redemption period, the buyer or purchaser of the property
(in this case, the DBP), can consolidate his title and take
JOSE DE LUNA vs. CA: What is the significance of prior possession thereof.
possession? How did de Luna possess the property? In What about the 5 year agreement? Sure. According
one’s own name because he was the lessor. to the agreement, the Pinedas could still redeem. But it
The fact that he had tenants who possess in his doesn’t mean that DBP cannot enter the property after the
name made him a prior possessor who has the right to file one year redemption period. DBP said that it would honor
for an action for forcible entry. This case is the same with the 5 year if the Pinedas, indeed, intended to redeem within
the example I gave earlier. It’s just that this is an actual the 5 year. So, there was no bad faith for possessing the
case. property after the one year period expired.
The issue here is physical possession. But we are As to the fruits appropriated by DBP, it is not
not going to the specifics. What do you mean by physical obliged to give the value thereof to the Pinedas. As already
possession? Even if one is not in an actual physical explained, only upon legal interruption was DBP made
possession but if there is somebody there who possesses in aware of the flaw of its title. Therefore, it is entitled to keep
his name (just like the tenants) then he is qualified to be a the fruits up to the time of legal interruption.
prior possessor who can file a forcible entry case.
We are done with the first portion of possession. Let’s now
EDITHA ALVIOLA vs. CA: We already discussed this but let’s go to the next part – Acquisition of Possession. How does
focus now to the discussion on possession. When we took one acquire possession? This is provided by Article 531.
this up in accession, we only assumed that they were both
in bad faith and therefore, they would be governed by Art. 531. Possession is acquired by the material occupation
Article 448. of a thing or the exercise of a right, or by the fact that it is
But this part of the decision explains why the subject to the action of our will, or by the proper acts and
Alviolas were possessors in bad faith. Did they possess the legal formalities established for acquiring such right.
property in the concept of an owner? In what concept did (438a)
the Alviolas possess the property? In the concept of an
owner or of a holder? There are three ways of acquiring of possession:
Does bad faith or good faith matter if one
possesses in the concept of holder? Of course not. Bad 1. Material occupation of a thing or the exercise of a
faith or good faith, from Articles 526-‐529, is only right
significant if the possession is in the concept of an owner.  This is the most common way of
In this case, it is very clear that the Alviolas -‐-‐-‐ that exercising possession.
they were owners. They acted like they were the owners  Material occupation denotes holding,
and they filed for partition. Unfortunate for them, facts apprehension, arrests(?) or occupancy
existed that would indicate that they were not unaware in  Occupation here is used in its ordinary
the flaw of their title. You should not forget how to sense which means that the holding
determine whether one is in good faith or in bad faith. of a thing must be physical.
 If you exercise a right, you are actually
July 23, 2014 acquiring possession of a right. If you
exercise the right to play in golf in X
CASE Country Club, then you have acquired
possession of that right.
DBP vs. CA: This case illustrates the three provisions about
good faith. Of course, there is a presumption of good faith.
algene c.
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 There’s also a discussion in the book

possession (constructive) under Article 531 but when there
of Paras regarding the modes of
is an impediment – fiction yields to reality…
delivery. We will not discuss that
What is the reality? I have never stepped on the
anymore because you already took
unit. Bakit pala? Malay mo somebody already bought the
that up in ObliCon.
unit before me and that person is questioning me so he files
a case against me and the seller. The fiction created by
2. Agreement
Article 531(3) will yield to reality and the reality is I never
 There is no need to physically retain
took possession of the unit. This is exactly what happened
the property as long as the parties
in this case.
agree
Equatorial Realty, despite the fact that it entered
 There can be symbolic delivery. Like if into a Deed of Absolute Sale with Carmelo as an owner of
it’s a car, you deliver the keys. If it’s a the two lands, it never stepped into the premises because
parcel of land, you deliver the title. Mayfair has always been in possession and Mayfair
That’s enough to acquire possession. objected to Equatorial’s purchase of the lands. Hence,
Mayfair’s opposition to the transfer of property by way of
3. Constructive possession or proper acts and legal sale to Equatorial was a legally sufficient impediment that
formalities evidently prevented the passing of the property into the
 The execution of documents to latter’s hands.
transfer possession from one entity to Therefore, the execution of a public document
another.
only gives rise to a prima facie presumption of delivery. It is
 Example: Deed of donation. rebuttable. Such presumption is destroyed when the
Possession is acquired by the donee instrument itself expresses or implies that delivery was not
upon acceptance. intended. If when by other means, it is shown that delivery
 In succession, when a person dies, the was not effected because a third person was actually in
heir who inherits acquires possession possession of a thing… In this case, the sale cannot be
automatically upon the death of the considered as consummated.
decedent. What about the fruits? The rentals that Equatorial
 Execution of the deed of sale is an is asking Mayfair to pay. According to Equatorial, when it
instance which defines this entered into a Deed of Absolute Sale with Carmelo, it
constructive possession. acquired ownership of the property. Well, actually it did not
because there is no delivery. He did not acquire possession.
What really explains this particular mode of acquiring Aside from that, we also have Article 1385 since the
ownership (refers to number 3) is the case of Equitorial. contract was rescinded. The effect of rescission is to return
the thing/s which was/were the object/s of the contract,
CASES together with the price but also the fruits and interests. So,
not only the lands and buildings sold but also the rental
EQUATORIAL REALTY vs. MAYFAIR: Who was in physical payments, if any, had to be returned.
possession of the property during the pendency of the Apparently, Mayfair, during the pendency of the
case? Mayfair. Mayfair continued to occupy the two case, actually paid Equatorial the rental so as not to be
buildings. What was the allegation in relation to our topic? driven away from the premises.
Let’s say I’ll buy a condominium in Makati. It’s
already existing but I’ve never seen it nor entered in to it. SUMODIO vs. CA: Is that how he acquired the possession,
And I signed a deed of sale as the purchaser of that by subjecting it to his will? Was there material occupation?
particular unit. Under Article 531, because of this execution Article 531 does not talk about retention of
of legal documents, I actually acquired constructive possession but acquisition of possession. Did he acquire
possession of that condominium even if I don’t see it or possession of the property? Obviously yes. By going there,
step on it. planting trees. Aside from subjecting it to the action of his
BUT this only holds true, according to the SC in the will, he also materially occupied the property. He doesn’t
case of Equatorial, if there is no impediment that may have to step on the entire area. And he doesn’t have to be
prevent the passing of the property from the hands of the there 24 hours a day. Therefore, he is considered as a prior
vendor into those of the vendee. If nobody objects to my possessor who can file an action for forcible entry.
purchase of the condo unit, then okay. I have acquired
algene c.
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DELA ROSA vs. CARLOS: Don’t forget that we are talking of

the SC rule in this case? Does it matter that he is not a prior
acquisition of possession. We will see later how acquisition
possessor? No. Why? Prior possessor is not a requisite for
is lost and it’s not easy.
unlawful detainer.
Building a rest house, visiting it on weekends –
In other words, even if it is an action for ejectment,
these are enough to acquire possession. In other words,
specifically it is akin to unlawful detainer ejectment case...
the execution of the Deed of Sale is not the only way to
Prior possession is only a requisite in a forcible entry case.
acquire possession. There was an argument that the
The facts would show that it is akin to an unlawful detainer.
delivery was an obstacle to the possession because there
Why?
were people residing in the property. But #3 is not the only
Insofar as Pajuyo and Guevarra are concerned, the
way because they actually, materially occupied the
possession by Guevarra was (when they entered into an
property and subjected it to the action of their will.
agreement)… What is the unlawful detainer? The
Therefore, it doesn’t matter if there is an obstacle to
possession of the defendant was originally lawful but it
number 3 or to the execution of the sale. They acquired
became unlawful.
possession over the property.
The argument of Guevara was “What are you
talking about? We are squatters. We have no right over that
EMBRADO vs. CA: This is related to the previous topic. This
property.” And another issue is that the parties are in pari
is just an illustration of a buyer in good faith vis-‐à-‐vis a buyer in
delicto. When the parties are in pari delicto, it means that
bad faith. How is Salimbagat and Simafranca considered in
they are also unlawfully occupying the property. So there
bad faith? The existence of facts and circumstances that would
was no lawful possession from the very beginning.
put them upon inquiry or investigation.
If the parties are in pari delicto, what will happen?
There are many kinds of good faith and bad faith.
The courts will just leave them as they are? What did the SC
As to possession in good faith, we already have Articles
say? Should the Court leave the squatters fighting over a
526, 527 and 528 defining possession in good faith. But this
public land as they are and not interfere with them? Does it
is a buyer in good faith. Okay? Just for your information.
mean that the person who emerges victorious in an
unlawful detainer case has an absolute right over the
WONG vs. CARPIO: it is not required that the person who
property?
alleges that he is in possession is sitting there 24 hours a
day. In this case, it’s clear that he actually went there. He
I think we have discussed enough cases for acquisition of
harvested the coconuts, he paid the taxes, went
possession. Let’s proceed to the next provision. How is
periodically to the property, etc. He may not have placed a
possession acquired?
person to watch it, he may not put a sign but those are not
really indicative of possession.
Art. 532. Possession may be acquired by the same person
It is enough that he subjects the land to the own
who is to enjoy it, by his legal representative, by his agent,
action of his will and to materially occupy it by harvesting.
or by any person without any power whatever: but in the
He even exercised the acts of administration by paying the
last case, the possession shall not be considered as
taxes.
acquired until the person in whose name the act of
possession was executed has ratified the same, without
PAJUYO vs. CA: What was the action filed? Ejectment case.
prejudice to the juridical consequences of negotiorum
So, the other one is talking about prior possession. You are
gestio in a proper case. (439a)
not the prior possessor daw so the ejectment will not
prosper.
Atty. S: There are lots of issues in this case. Let us continue How may it be acquired?
tomorrow.  Possession may be acquired by the same person
who is to enjoy the property
July 24, 2014 This is personal acquisition.
 By his legal representative, by his agent
Continuation of CASES It may also be acquired by any person who
is entitled to possess. Not by him
PAJUYO vs. CA and GUEVARA: What is Article 487? Any co-‐ personally but through an authorized
owner can file an action for ejectment. What are the person. It may be by a legal representative
different kinds of ejectment cases? So an ejectment case or agent who has authority. He or she
was filed. It was argued by Guevara that it cannot be filed must have authority to acquire possession
because the other person is not a prior possessor. How did
algene c.
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for that person who has the right to

Why is it important to ensure that possession starts here?
possess.
What if the property is unregistered? We have what we call
 By any person without any power whatever
as tacking of possession to acquire ownership of the
It can also be acquired through an
property through prescription. That’s the rule.
unauthorized person. Let us say we have a
vacant parcel of land. Nobody is there. The
Mortis causa talks about the inheritance after the death of
person who is supposed to acquire the
the decendent while inter vivos takes effect during the
parcel of land is the buyer. For example, if
lifetime of the donor. We are talking here of after the death
X is supposed to acquire the parcel of land
of the decedent.
but he has no time to go there because it’s
too far from the city. Then, suddenly Y
Example: F in good faith possessed the land of X (the
entered it, plants crops, harvests it and
owner) for three years before his death. When F died, his
manages the land…
son S inherited the land in the sense that he automatically
According to Article 532, , the acquired possession of the land and believed so in good
possession shall not be considered as
faith that F was the owner of the land. 9 years after F died,
acquired until the person (X in our X files a case to recover the land. Let us assume ha na this
example) in whose name the act of
land is unregistered.
possession was executed has ratified the
 Will the action of the owner X prosper?
same. X must ratify the acts of Y in order
No because the son already acquired the
for Y to acquire unauthorized possession.
land through prescription. Why does S have just
Remember “without prejudice to the
title here? There is a mode of acquiring ownership
juridical consequences of negotiorum
(in this case: succession) but he could not acquire
gestio.” We will not discuss negotiorum
ownership because the grantor is not the owner.
gestio because you already discussed that
So, there are two ha: just title and good faith.
in your Obli.
There are two requirements for ordinary
prescription where 10 years is enough to acquire
Art. 533. The possession of hereditary property is deemed
ownership. S, as a present possessor, may
transmitted to the heir without interruption and from the
complete the necessary period for prescription by
moment of the death of the decedent, in case the
tacking his possession to that of F. F possessed the
inheritance is accepted.
land for 3 years + 9 years of S = 12 years. That is
One who validly renounces an inheritance is
enough to acquire ownership through prescription.
deemed never to have possessed the same. (440)
Therefore, the action of X to recover his land will
not prosper.
This refers to hereditary property. When there is sucession,
 What if both the son and the father are in bad
whether it refers to testate (has a will) or intestate
faith? Can S still acquire ownership over the
(without a will)... Succession is a mode of acquiring
property?
ownership. When the decedent dies, automatically his heirs
Yes but the period is longer. 30 years for
become the owner of the properties that he left behind.
extraordinary prescription.
But this is ownership ha. It is automatically transferred
upon the death. How about possession?
Art. 534. One who succeeds by hereditary title shall not
suffer the consequences of the wrongful possession of the
Under Article 533, it is deemed transmitted to the heir
decedent, if it is not shown that he was aware of the flaws
without interruption and from the moment of the death of
affecting it; but the effects of possession in good faith
the decedent. The only condition is that the inheritance his
shall not benefit him except from the date of the death of
accepted.
the decedent. (442)
There are times that the person repudiates his inheritance
The heir does not suffer the consequences of the wrongful
or renounces it. So even if the decedent dies on this day,
possession of the decedent. So we already know under
January 1, 2010 and the repudiation is made on June 6, 2010
Article 536 that good faith is already presumed and
(6 months later), the heir who repudiates is never deemed
possession in good faith will continue as long as there no
to have possessed the same.
facts and circumstances etc. You already know that.
algene c.
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If the father was in bad faith, will son be the contaminated

by the bad faith of the father? No. He shall not suffer the
So what about minors? Can minors acquire possession? Yes.
wrongful possession of the decedent. If it is not shown that
he was aware of the flaws affecting it. But the effects of
Let’s say, X gives his inaanak an ipad. Did that inaanak
the possession shall not benefit him except from the date
acquire possession of the ipad? Yes. He has a juridical
of the death of the decedent.
capacity. But in case of a court action regarding the
ownership of the thing, it is not the inaanak who can go to
There is a presumption, therefore, that the heir is in good
the court but his parents or legal guardians.
faith. IF there are no facts that would show that he is aware
of the flaw of the title of the decedent.
We are not only talking about the minors under Article 535
but also the incapacitated persons like insane, those under
Let’s go to our problem again: F possessed the land of X in
civil interdiction and deaf-‐mutes in certain cases.
bad faith for 3 years. The land was inherited by S meaning
the ownership was transferred to S through succession. But
Art. 536. In no case may possession be acquired through
S is presumed is in good faith.
force or intimidation as long as there is a possessor who
 How many more years from F’s death should X
objects thereto. He who believes that he has an action or a
possess the land in order to become the owner
right to deprive another of the holding of a thing, must
through prescription?
invoke the aid of the competent court, if the holder should
9 years because the effect of the
refuse to deliver the thing. (441a)
possession of S will only begin from the time of the
death of F. In ordinary prescription, one can
acquire ownership in 10 years. Therefore, the 3 The two sentences are not related in the sense that there is
years possession of F in bad faith is equivalent to 1 a certain meaning under the first sentence that has nothing
year possession in good faith (ratio: 3 is to 1). F, the to do with the second sentence. Let’s proceed to the next
father, has an equivalent possession in good faith provision and we will discuss them together.
so S only needs 9 years to acquire the land through
prescription. Art. 537. Acts merely tolerated, and those executed
clandestinely and without the knowledge of the possessor
That is why it is important to note when that person is of a thing, or by violence, do not affect possession. (444)
deemed to have possessed because you count the
prescriptive period from that point. Clandestinely means stealth. Violence includes threats. How
do you understand the first sentence of Article 536 and the
Art. 535. Minors and incapacitated persons may acquire provision under Article 537?
the possession of things; but they need the assistance of
their legal representatives in order to exercise the rights For example, we have a parcel of land and inside that is X.
which from the possession arise in their favor. (443) Then Y, through force and intimidation removes him. So, Y
is already inside the property and X outside. Does that
Let’s just go through this quickly. Under Article 36 of the mean that Y does not acquire possession? What is the
Civil Code, there is a difference between juridical capacity objection that we are talking about here? Filing of an
and capacity to act. ejectment case.
Art. 37. Juridical capacity, which is the fitness to be
the subject of legal relations, is inherent in every Does Y acquire possession over that parcel of land? So can
natural person and is lost only through death. X file an action for ejectment case? Diba X is now the prior
Capacity to act, which is the power to do acts with possessor? That’s why you have to relate that to Article 537
legal effect, is acquired and may be lost. (n) kasi magulo.
So, anybody has juridical capacity even an unborn child (it Y was able to remove X, diba? According to Article 536, “In
can be a donee). Diba the capacity to become the subject no case may possession be acquired through force or
of legal relations. This is inherent in every natural person. intimidation as long as there is a possessor who objects
BUT that unborn child has no capacity to act. It doesn’t thereto.” But X was removed by Y. X now is a prior
have the capacity to act with legal effects. possessor. X now filed a forcible entry case. So X objected.
Does that mean that Y is not in a possession even if he is
inside the property? What do you mean that “Y is not in
algene c.
68
possession of the property.” Look at the illustration oh. Y is

In other words, can X and Y (referring to the example in the
physically inside the property (inside the box).
preceding articles) be recognized as the possessors of the
land? No.
Article 536:
The exception is: In cases of co-‐possession. Only when X
In other words, under Article 536, Y is in actual possession.
recognizes the possession of Y like he says “I recognize that
He was already inside. X is merely a prior possessor
Y is a co-‐possessor.” And vice versa. That is allowed but
physically. What Article 536 means is that Y will not acquire
each cannot claim to be the sole possessor of the land.
possession for purposes of prescription. In other words,
the counting will never start. He is not deemed in
What if both of them are claiming to be the possessor of
possession for purposes of prescription if X objects.
the land? What are the rules for double possession?
 The present possessor shall be preferred
Article 537:
 If there are two possessors, the one longer in
The possession of X over the parcel of land… If he allows Y possession
to stay there and merely tolerates Y’s stay in the land or if  If the dates of the possession are the same, the
the entry was made clandestinely, without the knowledge one who presents a title
of X, or by violence, by ousting X – the possession X (if he Meaning if X and Y can show TCT or OCT in
was in possession since 1969) and was removed by Y in his name, then he will be the preferred
2009, it will still continue until 2012 even though he is possessor
outside the property. For purposes of prescription. In other  If all these conditions are equal, the thing shall be
words, his possession is not interrupted. placed in judicial deposit pending determination of
its possession or ownership through proper
Even if X is still physically outside, the period will still proceedings
continue to run. He might one day acquire ownership of the
property through prescription. Y, however – pag-‐acts Let’s go to effects of possession. Here, we are talking of
merely tolerated (that means in possession in a concept of the rights of a possessor. Remember the rights of an
a holder), those executed clandestinely and without the owner? Rights to enjoy, right to dispose and right to
knowledge of the possessor of a thing, or by violence recover.
(FISTS) – the job of one who is removed (X in this case) is
to file an ejectment case against Y. Art. 539. Every possessor has a right to be respected in his
possession; and should he be disturbed therein he shall be
Note: Medyo libog jud ang discussion under Articles 536 and protected in or restored to said possession by the means
537. :) established by the laws and the Rules of Court.
A possessor deprived of his possession through
Art. 538. Possession as a fact cannot be recognized at the forcible entry may within ten days from the filing of the
same time in two different personalities except in the complaint present a motion to secure from the competent
cases of co-‐possession. Should a question arise regarding court, in the action for forcible entry, a writ of preliminary
the fact of possession, the present possessor shall be mandatory injunction to restore him in his possession. The
preferred; if there are two possessors, the one longer in court shall decide the motion within thirty (30) days from
possession; if the dates of the possession are the same, the filing thereof. (446a)
the one who presents a title; and if all these conditions are Now, what are the rights of the possessor?
equal, the thing shall be placed in judicial deposit pending 1. To be respected in his possession
determination of its possession or ownership through Do not remove him through force, threats
proper proceedings. (445 or intimidation.
2. If his possession is disturbed, he has the right to be
Let’s go to double possession. This is the rule: Possession protected and to be restored to said possession
as a fact cannot be recognized at the same time in two through legal means.
different personalities.
How can he be restored in his possession to the property?
Well, we have already discussed the different remedies
algene c.
69
available – the ejectment cases. Except ang accion

he possesses the property for 20 years but it doesn’t
reinvindicatoria.
matter because his possession is in a concept of a holder.
 He can avail of Article 429 as long as he is a lawful
possessor.
So what are the requisites for acquiring dominion?
 He can file a forcible entry.
1. Possession must be actual or constructive
 File an accion publiciana. It doesn’t have to be actual. You can
acquire possession by going to the
Forcible entry is a special case because if a person is property and then leaving, tapos planting
deprived of possession through FISTS… You will learn in then harvesting. We already discussed
your CivPro or CrimPro that there are proceedings that are this.
summary in nature, meaning that the procedures are 2. It must be in a concept of an owner
shortened. Forcible entry and unlawful detainer cases fall
under the summary rule. It doesn’t take that long to finish. Art. 541. A possessor in the concept of owner has in his
favor the legal presumption that he possesses with a just
In our example, X was physically outside na diba? He has to title and he cannot be obliged to show or prove it. (448a)
file an action for ejectment against Y who ousted him. What
can he do? If he waits for the court to decide, it will take
Article 541 gives us a presumption: If you possess in a
long diba? So what can he do for the meantime?
concept of an owner, there is a presumption in your favor
that you possess it with a just title.
Under Article 539, he may within ten days from the filing
of the complaint present a motion to secure from the
This means there was a mode of transfer but not from the
competent court, in the action for forcible entry, a writ of
owner. So just title is important because it is a requisite for
preliminary mandatory injunction to restore him in his
ordinary prescription. It’s not enough to be in good faith,
possession. He can ask the court to issue the writ and
one must also have a just title.
restore him of his possession. Now, the Court has to decide
the motion within thirty (30) days.
Just title is easy. You just have to possess in the concept of
an owner because there is already a presumption if you
Example, X is dispossessed on June 6 and he files the action
possess in the concept of an owner. You just need to prove
on June 17 (within 10 days), on July 17, he can now be
that you possess the property continuously for 10 years. Do
restored the possession. The Court can deny or grant
you have to prove that you are in good faith? No because it
depending on the merits of his motion.
is presumed. So there is a presumption of good faith. And
automatic, there is a presumption of just title provided that
This only applies to forcible entry cases. This right is
the possession is in the concept of an owner.
available to an ousted possessor. Why? Because he was
physically ousted. Unlike in unlawful detainer, the one filing
For example, Richard drives around the car. Feeling niya
the case was not ousted because he actually agreed to the
owner siya and someone says “Is that your car? Show me
possession of the now unlawful possessor (note: lawful ang
evidences.” He can say “Anong pakiaalam mo?” He can say
possession at first).
no. He doesn’t have to. There is a presumption – because
he drives the car everyday – so his possession was in the
Ang accion publiciana, medyo matagal na diba? Basta for
concept of an owner even if the car doesn’t belong to him.
forcible entry, you have this provisional remedy to the
He cannot be obliged to show evidences. The burden of
dispossessed person.
proof, to rebut that presumption of having just title, is on
the one who alleges that there is no just title (or the one
Art. 540. Only the possession acquired and enjoyed in the
who opposes the acquisition of ownership through
concept of owner can serve as a title for acquiring
prescription).
dominion. (447)
If one possesses the property in the concept of a holder (he Let’s go to the kinds of title in relation to prescription.
recognizes ownership of another), he can never acquire
ownership of the property through prescription. The 1. True and valid title
prescriptive period will never start to run because his  Sufficient enough to transfer
possession is not in a concept of an owner. He may say that ownership
algene c.
70
 There’s no need to comply with the

the movables therein, so long as it is not shown or proved
passage of time (no need for period
that they should be excluded. (449)
of prescription to elapse)
 There’s an instant transfer of
Just take note of the presumptions. No need to explain this
ownership upon delivery and any
na.
mode of transfer (donation,
occupation, succession)
CASES
2. Colorable title
MARCELO vs. CA: With respect to the 6,000 sq. m., how did
 The title where, although there is a he acquire it? Sale. How about the other 7,000 sq. m.?
mode of transfer of ownership, still Acquisitive prescription. He occupied it since 1960 thinking
something is wrong
that it is included in the sale. Did he possess it in the
 Equivalent to just title concept of an owner?
 The kind of title that helps to ripen the It was actually Flores who acquired ownership
possession into ownership through acquisitive prescription. He had good faith. Did he
possess the land in the concept of an owner? Where were
3. Putative title the Sarmientos during that time?
 A title wherein, although the person In other words, Flores started occupying the
believes that he is the owner, property since 1968. When was the case filed for
nonetheless he is not because there is ejectment? 1982. 1982 – 1962 = 14 years. The 10 year period
no mode of acquiring ownership required started to run only in 1968. If ever it started to run
 Example: X thought that his father, in 1960, that was possession of bad faith so 3 is to one. But
who is an OFW, died. So, he had the then Flores did not suffer the xxx therefore he only
father declared to be presumptively requires 10 years.
dead and he executed a document as Did he have just title? Of course it is presumed
a sole heir of the father. He is now because he is in possession in the concept of an owner.
possessing the properties in a concept
of an owner. Feeling niya he owns the CEQUENA vs. BOLANTE: When was the case filed? 1990 or
property but in truth and in fact, the 1992 parang ganun. This is a 2000 case. From 1952-‐1985,
father was alive. So, definitely, there Miguel was able to enter the property. So Honorata, 1952-‐
was no mode of transferring 1988, Miguel was able to enter but Honorata was still there.
ownership – no succession. Therefore, So they were fighting as to who among them is the owner.
his title is putative. (Note: Not sure with the dates. Please verify.)
As to the issue double possession, the rule is the
Articles 540 and 541 are significant because these one who is in first possession. Honorata was able to prove
provisions tell us how to acquire ownership through that the possession was tacked with that of her father. Did
prescription. Again, take note: she acquire the property through acquisitive possession?
 Ordinary prescription for movables – 4 years Yes. Before Miguel et. al. entered the property, she was
 Ordinary prescription for immovables – 10 years already able to possess the land for more than 10 years
(the kind of possession must be in good faith and (1932-‐1948) in the concept of an owner. Therefore, the just
the kind of title must be colourable or just) title is presumed. Was there a just title? Sinforoso is the
So, good faith and just title are the heir.
requisites for the ordinary acquisitive prescription. She is alleging that she doesn’t have to prove
 Extraordinary prescription for movables – 8 years ownership because her just title is presumed. Is she
 Extraordinary prescription for immovable – 30 correct? No. What is presumed under Article 541 is the
years existence of just title if the possession is in the concept of
Possession must be in bad faith and an owner. She still needs to prove that she possessed the
without any title. OCEAN possession for land in good faith for the required number of years in order
30 years ha. Of course, the possession to be considered the owner.
must be in a concept of an owner. In other words, it is not enough to have just title.
You have to prove OCENPO. Ito yung kailangan iprove ni
Art. 542. The possession of real property presumes that of
algene c.
71
Honorata. She has to prove the 10 years continuous

HEIRS OF GAMOS vs. HEIRS OF FRANDO: Take note that
possession.
the registration is different from acquisition of ownership.
Miguel et al occupied the property from 1952-‐1988.
In your Land Titles, you know that there are different types
Did they acquire ownership through prescription? No.
of application.
Because Honorata is already the owner. In contrast, they,
The important thing to know is that even if there is
despite thirty-‐two years of farming the subject land, did not
registration acquired in the name of Gamos, Frando already
acquire ownership. It is settled that ownership cannot be
acquired ownership of the land through prescription
acquired by mere occupation. Unless coupled with the
because he was able to comply with the OCEAN possession.
element of hostility toward the true owner, occupation and
So there was a presumption of just title. He was also able to
use, however long, will not confer title by prescription or
comply with the required number of years. Of course, there
adverse possession. In other words, their possession was
was a presumption of good faith. The Director of Land
merely that of a holder. It was not adverse.
issued a patent involving a property that was already
They cannot claim that their possession was public,
owned by somebody else.
peaceful and uninterrupted. Although their father and
What action is available to the Frandos? Quieting of
brother arguably acquired ownership through
the title. What is the cloud? The free patent issued in the
extraordinary prescription because of their adverse
name of Gamos which is on its face is valid but in truth and
possession for thirty-‐two years (1953-‐1985), this supposed
in fact is ineffective and it is prejudicial to the equitable title
ownership cannot extend to the entire disputed lot, but
of Frando.
must be limited to the portion that they actually farmed.
MARIO TITONG vs. CA: Here, the SC defined what is really
SPOUSES RECTO vs. RP: Take note that you have to be able
good faith and what is just title for purposes of
to distinguish between acquisition of ownership through
prescription.
prescription and registration.
The basis of our table here is of course Articles
In this case, they wanted to register the
1134, 1117.
unregistered land which is supposed to be alienable and
Art. 1134. Ownership and other real rights
disposable land of the public domain. Sometimes, the
over immovable property are acquired by ordinary
government will open a particular area and declare it to be
prescription through possession of ten years.
alienable and disposable.
(1957a)
If you are an applicant, you just have to prove that
Art. 1117. xxx Ordinary acquisitive
you, tacking the possession of your predecessor-‐in-‐interest,
prescription requires possession of things in good
occupied the land from 1945 or earlier under a bona fide
faith and with just title for the time fixed by law.
claim of ownership. So, through the concept of an owner.
(1940a)
In this case, the X sold their rights to Rectos. But
they were able to tack the possession all the way back to
July 28, 2014
1930. So what do you need to prove in order to register?
1. Bona fide claim of ownership from 1945 or earlier
We are still on effects of possession.
2. Prove OCEAN possession
3. That the land is an alienable and disposable land of
Art. 543. Each one of the participants of a thing possessed
the public domain
in common shall be deemed to have exclusively possessed
What about acquisitive prescription? Even if you do
the part which may be allotted to him upon the division
not register the land (like Honorata in the previous case),
thereof, for the entire period during which the co-‐
you are already deemed to have acquired ownership maybe
possession lasted. Interruption in the possession of the
in 1942 because she possessed the land in the concept of an
whole or a part of a thing possessed in common shall be to
owner for 10 years (existence of just title is presumed) and
the prejudice of all the possessors. However, in case of
presumption of good faith.
civil interruption, the Rules of Court shall apply. (450a)
Can she register that? Well, she has to prove that
she is in possession from 1945. Even if the possession did
not reach 30 years, as long as it is from June 12, 1945 or There are three sentences under Article 543. Let us discuss
earlier... it one by one.
Do not confuse yourself with PD 1529 registration 1st sentence: Each one of the participants of a thing
of unregistered land and acquisition of ownership through possessed in common shall be deemed to have exclusively
prescription (10 years or 30 years). possessed the part which may be allotted to him upon the
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72
division thereof, for the entire period during which the co-‐
 So, let’s say A was eventually ejected in 2006. Siya
possession lasted.
lang man ang gifilan ng kaso. In 2011, X filed an
ejectment against B. Will the action of X prosper?
Under this sentence, there is co-‐possession. Perhaps, this is
Yes. The possession of B was also
applicable to unregistered land. It is a rule. Do you agree
interrupted in 2004 because of the case
with the example in the book of Paras under this Article?
filed by X against A. So possession for 11
No. Because that is a typo.
years is not continuous (from 2000-‐2011).
Four years lang ang uninterrupted
Let us go to the example: A, B and C has been in possession
possession ni B. Another period yung after
since 1990. When is A deemed to have possessed the land?
2004-‐2011 na more or less 7 years lang.
A is deemed to have possessed the part of the land (which
 How long should B possess the land?
may be allotted to him) upon the division since 1990. So,
30 years na from 2004. Why? Because
the entire period when the co-‐possession exists.
facts already exist that indicate that he is
no longer unaware of the flaw of his title
Why is this significant?
or in the mode of his acquisition which
For purposes of acquisition of ownership through
invalidates it.
prescription.
What if in 2003, there was partition. So may specific
Another example: In 1980, A, B and C started to possess a
portions or shares na si A, B and C.
land in equal shares. They terminated the co-‐possession
 When X filed the action for ejectment in 2004, will
and terminated the lot in three equal shares.
it prosper? Can X eject A?
 In 1999, X, a stranger, files an action to eject them.
Yes because A is deemed to have
When can A claim to have started possessing the
exclusively possessed the portion from
land for purposes of prescription?
2000. Eh nafile yung case by 2004, so 4
Under the provision, since 1980.
years pa lang. Diba? A will be ejected.
 But what if it is not a stranger who tried to remove
 What if in 2011, si B naman ang gifilan ng case. Will
A? But B who is a former co-‐possessor? There’s a
X’s action prosper?
different treatment.
No. B is deemed to have exclusively
As to a co-‐possessor, A can only claim
possessed his portion of the land since
possession of the lot after the division
2000. In 2011 (presumption of good faith),
took place.
he has already acquired ownership of the
property through acquisitive prescription.
2nd sentence: Interruption in the possession of the whole
or a part of a thing possessed in common shall be to the  Will A and C be prejudiced by the case filed by X
against B?
prejudice of all the possessors.
No because the interruption took place
after the partition. There was already no
At this point, there is still co-‐possession. Wala pang
partition. What is the rule? Interruption in the possession of co-‐possession when the case was filed.
the whole or a part of a thing possessed in common shall
be to the prejudice of all the possessors. In other words, the rule that “Interruption in the
possession of the whole or a part of a thing possessed in
common shall be to the prejudice of all the possessors.”
Let’s say since 2000, A, B and C have been co-‐possessors of
will only apply if the interruption is made when the co-‐
the lot.
possession still exists. IF there is already partition by the co-‐
 X filed an action for ejectment of A, B and C in
possessors, this will not apply.
2004. Will the action prosper?
Yes. Because 4 years lang ang possession
3rd sentence: In case of civil interruption, the Rules of
nila. Very easy if the three of them will become the
Court shall apply. (450a)
parties in the ejectment case.
 What if only a part of the land was interrupted? X
Civil interruption here suspends or cuts the running of the
filed an action for ejectment against A. What about
prescriptive period. The possession will no longer be
B and C? Is there an interruption against B and C?
applied. The Rules of Court will apply.
Yes.
algene c.
73
Civil interruption, under the Rules of Court, refers to the

service of summons. If X files an action against A, the court
When we talked about Article 448, the possessor in good
will serve summons to A who is the defendant. From that
faith is entitled to the fruits. What is the legal basis for
point (service of summons), that is the point of civil
saying? Article 544. A possessor in good faith is entitled to
interruption. The particular date when the summon was
the fruits received before the possession is legally
received by A.
interrupted.
The provision is very clear ha. The Rules of Court will apply
Natural and industrial fruits are considered received from
daw. So service of summons is equivalent to civil
the time they are gathered or severed. Civil fruits are
interruption. That is what the rules say.
deemed to accrue daily and belong to the possessor in
good faith in that proportion.
Let’s compare this with Article 544. What kind of
interruption do you see in the next article?
He is entitled to the fruits received before the possession
is legally interrupted. So natural and industrial fruits are
Art. 544. A possessor in good faith is entitled to the fruits
considered received from the time they are harvested or
received before the possession is legally interrupted.
severed.
Natural and industrial fruits are considered
received from the time they are gathered or severed.
CASE
Civil fruits are deemed to accrue daily and belong
to the possessor in good faith in that proportion. (451)
TACAS vs. TOGON: What do you mean by question? They
filed an action to recover the possession. The interruption
What is legal interruption? What does it do? The good faith
here was the filing of the case against him.
is converted into bad faith.
What are the rules to be considered? What is
broader? Legal or civil interruption? Legal includes
Do you remember how that happens? At the point when
everything that would indicate that the possessor is no
facts exist that would indicate that the possessor is no
longer unaware of the flaw. Civil interruption refers only to
longer unaware of the flaw of his title or in the mode of his
the service of judicial summons.
acquisition that invalidates it.
Let’s go to the rules.
We have two points in time:
1. Legal interruption – from good faith to bad faith
General rule: The possessor in good faith is entitled to the
2. Civil interruption – suspension of the running of
gathered fruits before his possession is legally
the prescriptive period
interrupted.
The rules of Court will apply in civil interruption. This means
When are the fruits deemed received?
that you have to file a case against the possessor. His
 Industrial and natural fruits: Pagna-‐harvest na yan,
possession will not be interrupted kung magpunta ka lang
kanya nay un. As long as the harvest was done
dun and paalisin mo siya. That is not enough. He has to
before legal interruption. So, from the time that
receive the summons. And from the point of receipt, that
they are gathered and severed, they all belong to
would be the time that the running of the period will be
the PGF (possessor in good faith). After legal
suspended.
interruption, if he still gathers, that no longer
belongs to him but to the owner or the one who
If you are the owner of the land and you see a possessor
files the case.
there, then you say to him that you own the land, show him
some evidences or whatever… There is legal interruption  Civil fruits: These accrue daily. So in proportion ang
already. The possessor is aware na hindi na siya innocent ownership ni PGF and owner.
possessor. There was already a doubt as to whether he is Let’s say the possessor was in possession
the owner of the property or not. So, that is already of the apartment building wherein the
enough for legal interruption. lessee paid one year rent -‐ 100,000 a
month. So, P1.2M paid in advance, from
What is it important to know the point of legal interruption? January to December. In October 30, there
Because of the fruits of the property that was possessed. was legal interruption. How much does he
algene c.
74
have to return to the owner because he

should they do? Compute the expenses and determine the
already got advance payments?
net profit, share in the proceeds.
P200,000 because civil fruits
accrue daily. Just get the proportionate
The owner has to share in the expenses for cultivation and
share from the point of legal interruption.
charges. If the net profit is P120,000, how much will go to
(P1M from January 1 to October 30;
the possessor in good faith? P50,000 (5 months from June 1
P200,000 from November 1 to December
to May 31). June 1 to December 31 is 7 months.
31.)
Pero there are times when the net profits are actually less
So, if may fruits sa tree or may palay pa sa fields, they
than the expenses so lugi ba. So the owner can choose
should not be harvested after the legal interruption. BUT
option 2. Pwede niyang sabihin na “Sige, i-‐harvest mo
there are times na may legal interruption and may pending
nalang yung palay mo. Whatever you get is part of the
fruits pa, so what is the rule under Article 545? Who owns
indemnity. Yun na ang bayad ko for cultivation and
the pending fruit?
charges.” Who has the right to choose? The owner. Okay?
Art. 545. If at the time the good faith ceases, there should
After the legal interruption, as to pending fruits, the PGF
be any natural or industrial fruits, the possessor shall have
has no rights at all. Except for the expenses incurred for
a right to a part of the expenses of cultivation, and to a
preservation, cultivation. What if the legal interruption took
part of the net harvest, both in proportion to the time of
place and the PGF still harvested the fruits? Who is entitled
the possession.
to the proceeds? The owner. But he shall be entitled to the
The charges shall be divided on the same basis by
reimbursement of PGP.
the two possessors.
Art. 443. He who receives the fruits has the
The owner of the thing may, should he so desire,
obligation to pay the expenses made by a third
give the possessor in good faith the right to finish the
person in their production, gathering, and
cultivation and gathering of the growing fruits, as an
preservation. (356)
indemnity for his part of the expenses of cultivation and
the net proceeds; the possessor in good faith who for any
Again, the choices of the owner are:
reason whatever should refuse to accept this concession,
1. He may harvest the fruits and the possessor shall
shall lose the right to be indemnified in any other manner.
have a right to a part of the expenses of
(452a)
cultivation, and to a part of the net harvest
2. He may also give the possessor in good faith the
Let’s go to a situation. X possesses the land of A in good
right to finish the cultivation and gathering of the
faith. The possession of X has been legally interrupted so
growing fruits, as an indemnity for his part of the
hindi na siya in good faith. The natural and industrial fruits
expenses of cultivation and the net proceeds
are still pending. How do they share the fruits?
Note: What is the effect if the PGF does not accept that the
According to Article 545, X (the PGF) should be paid
owner chooses option 2? He shall lose the right to be
reimbursement for the cultivation, charges incurred by him
indemnified in any other manner.
and a share in the net harvest in proportion to possession.
July 29, 2014
The owner has a choice between:
1. Sharing with X pro-‐rata the expenses for
NOTE: Makeup class with Manresa  Atty. S. discussed
cultivation and charges, and profits in the net
again Articles 544 and 545. Important: Take note of the
harvest; OR
importance of legal interruption. Know the different effects
2. Allowing X to finish cultivating and gathering fruits
of natural fruits and industrial fruits AND civil fruits re:
as an indemnity for his part of the expenses of
rights over the fruits.
cultivation and the net proceeds.
The owner has the right of choice just like under Article
Example: We have palay planted on January 1 to be
448. The one who is eventually declared the owner of the
harvested on December 31 (1 year). The legal interruption
property has has the option to proportionately share the
took place on June 1, so pending pa siya by that time. What
profit or (when the profit is less than the expesnes) just
allow the possessor to finish cultivating and gathering as an
algene c.
75
indemnity for his part in the expenses of cultivation and the

What about thepayment of realty taxes? The same. If you
net proceeds. So very easy for pending fruits noh?
don’t pay for the realty taxes of the property, it can be
taken away by the government. At the same time, the value
What happens after legal interruption?
of the property will not decrease. So, this is another
 As to pending fruits – xxx
example of necessary expense.
 As to gathered fruits – the PGF shall be entitled to
a reimbursement for the production, gathering and What are the rules if the PGF incurred necessary expenses?
preservation of the fruits
1. To be refunded -‐ necessary expenses shall be
refunded to every possessor
Those are the rules regarding the fruits of a land when legal
2. Right of retention until paid -‐ the possessor in
interruption happens.
good faith may retain the thing until he has been
reimbursed therefor (for PGF only)
Under Article 545 says that the possessor in good faith who
for any reason whatever should refuse to accept this In other words, whether he is in good faith or in bad faith
concession, shall lose the right to be indemnified in any when he incurred the expenses, he is still entitled to
other manner. This means that the PGF cannot demand reimbursement. Diba we already talked about the expenses
from the owner to choose a particular option. He has to for the preservation of the land? However, only the PGF is
wait and respect for the owner’s choice. entitled to retention until he is paid.
Article 546 -‐ We already encountered this a lot when you What about useful expenses?
read the cases under Article 448 because the According to Article 546, Useful expenses shall be refunded
indemnification or reimbursement made by the owner to only to the possessor in good faith (not to the PBF) with
the possessor of good faith is always based with this article. the same right of retention, the person who has defeated
him (the legal possessor or the one who is declared as the
Art. 546. Necessary expenses shall be refunded to every owner of the property) in the possession having the option
possessor; but only the possessor in good faith may retain of refunding the amount of the expenses or of paying the
the thing until he has been reimbursed therefor. increase in value which the thing may have acquired by
Useful expenses shall be refunded only to the reason thereof.
possessor in good faith with the same right of retention,
the person who has defeated him in the possession having What are useful expenses? Refer to Article 547.
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. (453a) Art. 547. If the useful improvements can be removed
without damage to the principal thing, the possessor in
good faith may remove them, unless the person who
This article talks about expenses incurred by a possessor recovers the possession exercises the option under
while he is in possession. paragraph 2 of the preceding article. (n)
1. Necessary Expenses
2. Useful Expenses Useful expenses – those that add value to the property, or
increase the object’s productivity, or gives rise to all kinds
What are the elements of necessary expenses? of fruits
1. Those without which the thing would physically
deteriorate or be lost These are the ones which are built, planted or sown under
2. They do not increase the thing’s value Article 448. Even if it’s only a small house, it will definitely
increase the value of the property… Even if P5,000 worth
Example: The house possessed by the possessor is already lang ang useful expenses, after nyan, the property (house)
full of termites and if he does not remove the termites, the would be P5,000 more in value.
house would collapse – the extermination or removal of the
termites is considered as necessary expenses because Another example is the rice mill on a rice land because it
without which, then the house would physically be lost and increases the object’s productivity. Another one is planting
the removal of the termites will not decrease the value of palay on the property.
the land.
What are the rules for Useful Expenses?
algene c.
76
1. Possessor in Good Faith

a. The right to reimbursement (either of the
Example: Vain ka and you want to add statute on the
amount spent on the useful expenses OR
property that you are possessing, it is considered as a
the increase in the value which the thing
luxurious expense.
may have acquired by reason thereof)
b. Right of retention until he is paid
Under this article, the possessor in good faith is not entitled
c. Right of removal – provided no substantial
to reimbursement. Take note, expenses for pure luxury or
damage or injury is caused to the principal,
mere pleasure shall not be refunded to the possessor in
reducing its value
good faith.
Basis: If the useful improvements
can be removed without damage
“But he may remove the ornaments with which he has
to the principal thing, the
embellished the principal thing if it suffers no injury
possessor in good faith may
thereby” – It can be removed because they are not really
remove them
useful to the owner. What would the owner do with the
Exception: Unless the landowner
naked statue (as an example) there? Luxurious expenses
exercises the option of
can be removed but not useful expenses. Useful expenses
reimbursement
are useful improvements to the owner.
Remember the case of Alviola? Did the
value of the land reduce when the sari-‐sari
“If his successor in the possession does not prefer to
store was removed? Not really. So the SC
refund the amount expended” – If the owner says that he
said that they can remove under Article
really likes the statue and he wants to refund the
547.
possessor, may choice ba si possessor na hindi ibigay? No.
2. Possessor in bad faith
He has to say that he will give it and require payment.
 Not entitled to anything
Again, the right of choice belongs to the owner or the one
 He cannot ask for reimbursement
who he is entitled to possess the property.
(under Article 449: He who builds,
plants or sows in bad faith on the land
Art. 549. The possessor in bad faith shall reimburse the
of another, loses what is built, planted
fruits received and those which the legitimate possessor
or sown without right to indemnity.)
could have received, and shall have a right only to the
EXCEPT: expenses for PGP which
expenses mentioned in paragraph 1 of Article 546 and in
are necessary expenses
Article 443. The expenses incurred in improvements for
 So when it comes to useful expenses,
pure luxury or mere pleasure shall not be refunded to the
he has no right whatsoever. He
possessor in bad faith, but he may remove the objects for
cannot even remove it. Remember
which such expenses have been incurred, provided that
under Article 540?
the thing suffers no injury thereby, and that the lawful
possessor does not prefer to retain them by paying the
We also have luxury expenses or for mere pleasure. Check
value they may have at the time he enters into possession.
the next article. (445a)
Art. 548. Expenses for pure luxury or mere pleasure shall

The possessor in bad faith shall reimburse the fruits
not be refunded to the possessor in good faith; but he may
received and those which the legitimate possessor could
remove the ornaments with which he has embellished the
have received, and shall have a right only to the expenses
principal thing if it suffers no injury thereby, and if his
mentioned in paragraph 1 of Article 546 and in Article 443.
successor in the possession does not prefer to refund the
amount expended. (454)
So these provisions are interconnected. When we talk
about the possessor in bad faith, he must reimburse the
What are expenses for pure luxury?
owner for the gathered fruits (the value of the gathered
 Those which add value to the thing only for
fruits) because he is already a PBF. Meaning, he is already
certain determinate persons in view of their
deemed as a PBF. When he gathers, he must reimburse.
particular whims
 They are neither essential for preservation nor
What are the rights that he has? Only reimbursement for
useful to anybody in general
the necessary expenses AND expenses for PGP.
algene c.
77
Pending Fruits Prorating of the net If the possessor is

What about expenses incurred for pure luxury? harvest because in bad faith from
The expenses incurred in improvements for pure luxury or after legal the very beginning,
mere pleasure shall not be refunded to the possessor in interruption, the he has no rights at
bad faith, but he may remove the objects for which such PGF is now a PBF. all.
expenses have been incurred, provided that the thing He has the right to He shall pay
suffers no injury thereby, and that the lawful possessor the reimbursement damages (note: bad
does not prefer to retain them by paying the value they of the necessary faith = damages)
may have at the time he enters into possession. expenses.
Note: It is important to determine the difference between a
According to Article 549, no reimbursement. Again, he PBF from the very beginning from a PGF who only turned
could remove, provided: into PBF after legal interruption. (Article 443, Article 449,
1. there is no injury Article 450)
2. that the lawful possessor does not prefer to retain Necessary Reimbursement Reimbursement
them by paying the value they may have at the Expenses
time he enters into possession Retention if not
paid of
So, there’s a difference between a PBF and a PGF with the
respect to the reimbursement he can get from the reimbursement
luxurious expenses from the eventual possessor or owner Note: There is no right of removal available to the PGF in
who would like to have it. this case.
 In PGF, he must pay the amounts spent by the Useful Reimbursement of No rights at all
possessor (direct reimbursement) Expenses the amount of the
If the value of the statue is P50,000, that is UE or increase in
how much the owner has to reimburse the the value of the
PGF property
 If it is the PBF, according to Article 549, he must Right of retention
pay the value at the time he enters the possession Right of removal
(only if there is no
It really depends. If the value of the thing depreciated, then substantial damage
the owner will pay a lower price. If it appreciated, he has to caused)
pay more. Note: There is no removal available to the PGF if the
reimbursement has been paid. So it is not available if the
SUMMARY: owner opts to refund.
Luxurious No right to refund Right of removal (if
Possessor in Good Possessor in Bad Expenses there is no injury)
Faith Faith No right of Right of retention if
retention the owner opts to
Gathered He is the owner of He shall return the buy but haven’t
fruits the GF before legal value of the fruits paid yet
interruption. that he harvested With right of Right to be
(note: must be PBF removal if there is reimbursed (for the
from the very no substantial value the PBF may
beginning) injury caused have at the time he
He shall pay (except when the enters into
damages (note: bad owner opts to possession)
faith = damages) refund)
He is entitled to Note: There is no right here. You have to distinguish
reimbursement for between a right and a choice.
PGP and the
necessary expenses So that is the discussion of effects of possession.
CASES
algene c.
78
agree upon the terms of the lease and in case of

CHUA vs. CA: We already took up this particular issue as to disagreement, the court shall fix the terms thereof.
whether or not lessees are entitled to reimbursement and
retention. The answer is no. These provisions only apply to HEIRS OF LIMENSE vs. RAMOS: Technically, it’s not a useful
possessors in good faith and not to possessors in a concept to him. Legally speaking, how do you categorize that
of a holder (like lessees). There are other provisions encroachment when it comes to reimbursement? If
applicable to lessees. Limense decides to appropriate it, how will you categorize
Art. 1678. If the lessee makes, in good faith, useful it?
improvements which are suitable to the use for What we are looking at is the legal impact of that
which the lease is intended, without altering the particular encroachment… If Limense, after the RTC,
form or substance of the property leased, the chooses option 1 which is to appropriate, how is the
lessor upon the termination of the lease shall pay treatment of that improvement for purposes of
the lessee one-‐half of the value of the reimbursement? Can it fall under necessary? No. Can it fall
improvements at that time. Should the lessor under luxurious? Of course not.
refuse to reimburse said amount, the lessee may We already mentioned earlier that those which are
remove the improvements, even though the built, planted or sown are generally considered useful
principal thing may suffer damage thereby. He expenses for purposes of reimbursement. Whether it’s
shall not, however, cause any more impairment really useful technically, it doesn’t really matter because if
upon the property leased than is necessary. xxx the land owner chooses to appropriate then for him, that is
So definitely, Article 546 is a partner provision of useful so he will have to pay under the provision of Article
Article 448. Again, Article 448 applies only to provisions in 546. He has to reimburse the value and there is a right of
good faith. retention until reimbursement is made.
So why would he want to appropriate that
PADA-‐KILARIO vs. CA: Same issue lang. When one occupies portion? We don’t know. What the court is saying is that it
the land by mere tolerance of the owner, he is a possessor is to be remanded to the trial court and let the landowner
in a concept of a holder. He recognizes the ownership of decide. If he decides to appropriate, may mga rules.
another. Possessor in good faith does not recognize the Definitely, it could not fall under necessary expenses nor
ownership of another because he believes that he is the luxurious expenses. For purposes of reimbursement, it’s
owner of the property. going to be treated as a useful expense.
FLORENTINO vs. SUPERVALUE: Article 1678 here says that Art. 550. The costs of litigation over the property shall be
“If the lessee makes, in good faith, useful improvements borne by every possessor. (n)
which is suitable for which the lease is intended xxx.”
Making in good faith is different from possessor in Just memorize this.
good faith ha. There is a bad faith here. There is a duty here
to consult. In this case, the xxx did not consult. Therefore, Art. 551. Improvements caused by nature or time shall
he is not entitled to the ½ value of the improvements. If always insure to the benefit of the person who has
you have time, you can look at the provisions of lease in succeeded in recovering possession. (456)
connection with Article 448 and Article 546.
Art. 448. The owner of the land on which anything We also look at this under ownership. Improvements
has been built, sown or planted in good faith, shall (accessions) do not belong to the possessor but to the one
have the right to appropriate as his own the works, who is entitled to possess the property.
sowing or planting, after payment of the indemnity
provided for in Articles 546 and 548, or to oblige Art. 552. A possessor in good faith shall not be liable for
the one who built or planted to pay the price of the the deterioration or loss of the thing possessed, except in
land, and the one who sowed, the proper rent. cases in which it is proved that he has acted with
However, the builder or planter cannot be obliged fraudulent intent or negligence, after the judicial
to buy the land if its value is considerably more summons.
than that of the building or trees. In such case, he A possessor in bad faith shall be liable for
shall pay reasonable rent, if the owner of the land deterioration or loss in every case, even if caused by a
does not choose to appropriate the building or fortuitous event. (457a)
trees after proper indemnity. The parties shall
algene c.
79
Article 552 talks about liability for loss or destruction. What

(1) By the abandonment of the thing;
if the thing is lost or deteriorated? Is there liability on the
(2) By an assignment made to another either by
part of the possessor? Take note that here, you have to
onerous or gratuitous title;
receive judicial summons. This is not for purposes of
(3) By the destruction or total loss of the thing, or
turning the PGF into bad faith but for knowing what the
because it goes out of commerce;
possessor is liable for.
(4) By the possession of another, subject to the
provisions of Article 537, if the new possession has lasted
Possessor in good faith:
longer than one year. But the real right of possession is
1. Before receipt of judicial summons: He is not liable
not lost till after the lapse of ten years. (460a)
for the thing that he possessed which was lost or
has deteriorated.
The first way is abandonment.
2. After judicial summons: When facts already exist
that he is no longer unaware of the flaw of his title,
According to our author, abandonment is the voluntary
then he is not liable.
renunciation of the thing. It is the intention of the
Exception: If he acted with fraudulent
possessor to abandon. If it is misplaced or the possessor
intent and negligence, he can be held liable.
did not know where he placed the thing, it is not
abandonment.
Possessor in bad faith:
1. Liable in every case
What are the requisites for abandonment to be a way of
2. Doesn’t matter if the loss or deterioration was
losing possession?
caused by a fortuitous event
1. The abandoner must be a possessor in a concept of
owner
Art. 553. One who recovers possession shall not be obliged
2. The abandoner must have the capacity to
to pay for improvements which have ceased to exist at the
renounce or alienate
time he takes possession of the thing. (458)
3. There must be physical relinquishment of the thing
4. There must be no expectation to recover (spes
Let’s call this person who recovers possession as “the
recuperandi) and intent to return or get back
owner.” He recovers possession of the property. There
(animus revertendi)
were improvements there but nawala na. Obviously, he
5. Abandoner must have knowledge of the loss
doesn’t pay for them pag-‐nakuha na niya ang property.
Example, may mga things na akala mo
lang nasa drawer pero yun pala nawala na.
Art. 554. A present possessor who shows his possession at
You must have no knowledge na nawala
some previous time, is presumed to have held possession
na siya, then you are deemed to have not
also during the intermediate period, in the absence of
abandoned.
proof to the contrary. (459)
Abandonment is a way of transforming a thing possessed
This is another presumption of possession.
into res nullus even if it is only for a brief moment of time.
So abandonment does not apply to land. You cannot
Example: In the year 2000, X possessed the land. Now,
abandon the land and make it res nullus.
2014, he is still in possession of the land. So, there is a
presumption that he possessed it from 2000 to 2014. There
CASES
is the presumption of continuous possession which is useful
for purposes of prescription. Again, this presumption can
US vs. REY: Why did they insist that there was
be rebutted.
abandonment? Because of the fact that abandonment of
the thing turns the thing into a res nullus which means that
What does the possessor have to prove? That he was there
it no longer have an owner. If a thing doesn’t have an
in the property in 2000 and that he is still there at 2014.
owner, it cannot be subject to theft or robbery.
There was no abandonment in this case because
Let’s go to how possession is lost. There are many ways of
there was no knowledge that the thing has been lost and
losing it under Article 555.
because of the extent to recover and the intent to get it
back.
Art. 555. A possessor may lose his possession:
algene c.
80
JOHN YU vs. DE LARA: Acquisitive prescription does not

rule is: Although X is physically outside, his possession is not
apply to registered lands. Abandonment can hardly apply to
affected. Possession is not acquired through FISTS. Y did
land, as to which said mode of acquisition is not available,
not legally acquire possession. X’s possession is not
let alone to registered land, to which “no title in derogation
affected by the fact that he was thrown out from the
to that of the registered owner shall be acquired by
property.
prescription or adverse possession.”
The squatter’s occupancy of the land was at the
According to Article 555: X, who has been ousted by Y, can
owner’s sufferance and their acts were merely tolerated
only lose possession if the new possession has lasted for
which could not affect the owner’s possession.
more than one year. So if Y stays there and X does not
object for one year, then X will legally lose possession. How
The next way of losing possession is assignment. It is the
can X object? By filing an action for forcible entry that is
complete transmission of ownership rights to another
why the prescriptive period for filing this action is one year.
person, whether onerously (as when the thing is sold or
X is given only one year within which to file an action for
delivered) or gratuitously (as when the thing is donated).
forcible entry.
Here, the thing is passed from one hand to another. There
But the real right of possession is not lost till after the
is no way for the thing to become a res nullus because from
lapse of ten years.
one possessor, it passes to another possessor. According to
X will lose possession de facto after one year (he can no
Paras, the right to possess is also passed to another.
longer file forcible entry) BUT the real right of possession is
not lost. Can X still file accion publiciana? Yes, after the one
How do we distinguish assignment from abandonment?
year period (10 years prescriptive period). He can file an
 Abandonment – for a short period of time, the
action to recovery. He just needs to prove his right to
thing becomes res nullus
possess.
 Assignment – in no way does the thing become
res nullus because it is passed on from one person
But after 10 years, if X does not file accion publiciana, he
to another
may lose his right to possess.
 Abandonment – always gratuitous
 Assignment – may be onerous or gratuitous Obviously, number 4 way of losing possession is only
applicable to real properties.
The next way is by destruction or total loss of the thing.
CASE
When you took up your ObliCon, you learned how things
are lost. CATHOLIC VICAR APOSTOLIC vs. CA: This case is an
Article 1189: xxx the thing is lost when it perishes, illustration of paragraph 4. Both entities here, the heirs and
or goes out of commerce, or disappears in such a Catholic Vicar, don’t have right of ownership.
way that its existence is unknown or it cannot be So the issue here is who is the entity who has the
recovered xxx right to possess. In 1906, they xxx the property to Catholic
Vicar so the time went on, they did not possess the
The last one is by the possession of another. possession of Catholic Vicar so possession de facto and de
jure was lost.
Xxx Subject to the provisions of Article 537, if the new One year and ten years have prescribed.
possession has lasted longer than one year.
Art. 556. The possession of movables is not deemed lost so
Art. 537. Acts merely tolerated, and those long as they remain under the control of the possessor,
executed clandestinely and without the knowledge even though for the time being he may not know their
of the possessor of a thing, or by violence, do not whereabouts. (461)
affect possession.
This is another presumption of possession. This is very
Legally speaking, if a possessor is removed from possession
common. Sometimes ma-‐misplace ang mga things.
through FISTS, does he lose possession? We already talked
Possession is not deemed lost under this case.
about this. Even if he (X) is physically out of the property
because he was ousted by Y and Y is already inside… The
Art. 557. The possession of immovables and of real rights is
algene c.
81
not deemed lost, or transferred for purposes of good faith at a public sale, the owner cannot obtain its
prescription to the prejudice of third persons, except in return without reimbursing the price paid therefor. (464a)
accordance with the provisions of the Mortgage Law and
the Land Registration laws. (462a) How do you understand the term IRREINVIDICABILITY?
What is accion reinvindicatoria? What is the root word of
Example: X bought a parcel of land in 1965. He registered this word? Vindicate. But accion reinvindicatoria is the
the sale with Registry of Deeds in 1965. He goes to the US action to recover ownership. How about irreinvindicability?
for 35 years and does not come back until 2000. While he What does irreinvindicable? It means that you cannot
was away, in 1969, Y entered the property. When he came recover ownership.
back in 2000, he found Y on his unregistered land. In this
case, the sale was registered but X was not able to secure a Let’s go to the provision.
title.
According to Article 559, The possession of movable
Will X lose possession of the land? The answer is it depends. property acquired in good faith is equivalent to a title.
 Insofar as Y is concerned, yes. Because Y has From this provision alone, we already know that this
acquired the land through prescription. X lost provision only applies to movable and that the possessor is
ownership and possession because 35 years lapsed not the owner.
na (1965-‐2000).
 Insofar as third persons are concerned, it is the Nevertheless, one who has lost any movable or has been
owner (?). Because registration is notice to the unlawfully deprived thereof may recover it from the
whole world. person in possession of the same.
This is recovery of possession of movable that was lost or
Art. 558. Acts relating to possession, executed or agreed to the owner has been unlawfully deprived thereof.
by one who possesses a thing belonging to another as a
mere holder to enjoy or keep it, in any character, do not If the possessor of a movable lost or which the owner has
bind or prejudice the owner, unless he gave said holder been unlawfully deprived, has acquired it in good faith at a
express authority to do such acts, or ratifies them public sale, the owner cannot obtain its return without
subsequently. (463) reimbursing the price paid therefor.
Act of a mere holder does not bind the owner. You know very well that one of the basic rights of an owner
is the right to recover ownership and recover possession of
Example: The lessee who throws a shabu party on the his property.
apartment he is renting. Will the owner of the property be a  The first part says that the possessor has title if he
co-‐accused for violation of RA 9165? Of course not. UNLESS acquires the movable in good faith.
the owner give the express authority to allow them to have  BUT if the owner has lost his property or has been
a shabu party or ratifies them subsequently. unlawfully deprived thereof, the owner can
recover the property from the possessor.
General rule: Anything that a mere holder does on a  BUT if the person mentioned in the first paragraph
property that he is possessing will not bind the owner. acquired the property in a public sale, can the
owner recover? Yes but he must pay
July 30, 2014 reimbursement.
We are now in Article 559. This is one of the most popular Let’s look at the situation under this article.
provisions in property. It is the doctrine of irreinvidicability. X is in possession of the movable property which he
acquired in good faith. So he believes that the person from
Art. 559. The possession of movable property acquired in whom he received the thing was its owner and could
good faith is equivalent to a title. Nevertheless, one who transfer valid title thereto.
has lost any movable or has been unlawfully deprived
thereof may recover it from the person in possession of Obviously, since we are talking of possession and not of
the same. ownership, the one who transferred to him that movable is
If the possessor of a movable lost or which the not the owner. So what does he have? Merely just title.
owner has been unlawfully deprived, has acquired it in
algene c.
82
What are the rules?

 Can Y refuse to reimburse A for the amount paid by
 General rule: The real owner of the property can
A for the car?
recover from the possessor who acquired the
Yes. Y does not have to reimburse A for
movable in good faith. But he must reimburse.
the reason that since Y had been
Why? Under the first sentence, possessor
unlawfully deprived of the car (X stole the
is in good faith. In our previous
car from Y), A’s possession is not
discussions, if one is in good faith, he is
equivalent to a title.
entitled to reimbursement.
 What if A bought the car in an auction sale? Can Y
 Exception: He can recover such movable without
get the car back from A?
reimbursement if he lost the movable or was
Yes because it is his right as the true
unlawfully deprived thereof.
owner. BUT by express provision of the
 Exception to the exception: He must reimburse
law, Y has to reimburse A for the price he
even if he has lost the movable or was unlawfully
paid to the car. If the property is acquired
deprived of it IF the possessor acquired the thing in
in an auction sale, the one who purchased
a public sale (auction sale).
the property is definitely paid the
purchase price.
Let’s go to an example of a general rule. X and Y are
brothers. Z, their father, died in the year 2000. In a deed
SUMMARY of rules under Article 559:
dated 1995, Z left his car to his son X. X sold the car to A in
1. The owner may recover his movable without
2001. However, in 2002, they found a will executed by Z in
reimbursement from a possessor in bad faith.
1999 (one year before he died.) It was discovered in his
2. The owner may recover his movable without
latest deed that the car was not left to X but to Y. A is now
reimbursement from a possessor in good faith if
in possession of the car.
the owner had lost the thing or had been
 Who is the real owner of the car? Y. unlawfully deprived of it.
Why? He has a mode of acquiring 3. The owner may recover but must reimburse if the
ownership through succession. possessor acquired the thing in good faith or at a
 Under Article 559, A’s possession of the car is public auction.
equivalent to a title which can only be defeated by 4. The owner cannot recover even if he offers to
the real owner. reimburse.
 While A is not yet the absolute owner of the car, a. If possessor had acquired it in good faith
his possession can ripen into ownership through by purchase from a merchant’s store in
acquisitive prescription. Can Y, the real owner, accordance with the Code of Commerce
recover the car from A in 2004? Note, A acquired and special laws
the car in 2001. b. If owner “is by his conduct precluded from
Yes. Y can recover but he must reimburse denying the seller’s authority to sell
A for the price paid for the car. (principle of estoppel is applicable)
Why? Because Y did not lose the car and c. If possessor had obtained the goods
he was not unlawfully deprived of the car. because he was an innocent value and
 What if Y decides to recover the car from A in holder of a negotiable document of title to
2007? the goods (under Negotiable Instruments
He can no longer recover because A has Law)
already acquired ownership of the car
through prescription. Let us say the possessor bought the movable in a mall like
For movables (GF) = 4 years Abreeza. Meron siyang receipt from the store. Even if in
For immovable (BF) = 8 years truth and in fact the thing belongs to X, X can no longer
recover because he already bought it in a commercial
Example on the exceptions: Y is the true owner of the car. X establishment. So, that is under the Code of Commerce.
stole the car from Y. A bought the car from X in good faith.
 Can Y recover the car from A? CASE
Yes, because as an owner, he has the right
to recover. DEL ROSARIO vs. LUCENA: Was there a case filed? Estafa.
Was she convicted? Yes, Flores.
algene c.
83
That is the proof that the Del Rosarios were

Where do you think the word “usufruct” come from? Use
unlawfully deprived of the property when she filed a
and fruits.
criminal case against Flores. Flores was convicted of estafa.
Therefore, she (Del Rosario – the owner of the property)
Art. 562. Usufruct gives a right to enjoy the property of
can recover it from the possessor because she was
another with the obligation of preserving its form and
unlawfully deprived of it.
substance, unless the title constituting it or the law
It is improper to compel el Rosario to reimburse
otherwise provides. (467)
Verches which Flores obtained through the commission of
an unlawful act. But that is proper and in accordance with
the law to compel Verches to return to Del Rosario the According to Article 562, the usufruct gives a right to enjoy.
jewels in question. Included in the right to enjoy are:
1. right to possess
EDCA PUBLISHING vs. SANTOS: What did the SC say? As to 2. right to use
the first issue of WON Santos acquired ownership of the 3. right to the fruits.
books, the answer is yes. Because the books were delivered
by Edca to that allegedly professor Cruz. Usufruct is the right to enjoy the property of another with
Even though his check were dishonored… The fact the obligation of preserving of its form and substance,
that the books were delivered, then that is already enough unless the title constituting it or the law otherwise
to transfer ownership. Why? Because EDCA owned the provides.
books. There was a mode of transfer of ownership which
was the delivery. Upon delivery to professor Cruz, he By looking at the provision, what do you think governs
already acquired possession of the book. usufruct? The title constituting it. The agreement.
It is not here a mere just title. We have here a true
and valid ownership. So when he delivered the books to In other words, usufruct is always constituted. It’s not like
Santos and received the payment from the latter, Santos co-‐ownership that can appear out of the blue because
acquired ownership of the books. Therefore, can Article somebody dies. So, usufruct is not automatic. Generally
559 apply? speaking lang ang Article 562. If there is some other
Who is the real owner of the book? It is already provision in the title constituting it, the agreement, then
Santos, not EDCA. WON there was unlawful deprivation of that will prevail.
EDCA, it is not significant because Article 559 is not
According to Paras (it doesn’t even look like requisites so
applicable. You have to identify your characters under this
maybe elements):
Article.
1. It is a right given to a person to an entity to enjoy
Article 559 says that the owner is the one who is
the property of another
not possession. But in our case, the owner is the one who is
2. It is real but temporary
in possession of the books. Do you get it?
3. With that right comes the obligation to preserve its
August 4, 2014 form or substance
Art. 560. Wild animals are possessed only while they are Usufruct = jus utendi + jus fruendi
under one's control; domesticated or tamed animals are Impliedly included is the jus possidendi (how can you use
considered domestic or tame if they retain the habit of the thing and enjoy the fruits if you don’t possess diba?)
returning to the premises of the possessor. (465) The right to dispose will remain with the owner.
Art. 561. One who recovers, according to law, possession The formula is:
unjustly lost, shall be deemed for all purposes which may Full Ownership = Naked Ownership + Usufruct
redound to his benefit, to have enjoyed it without Usufruct is consisting of the right to enjoy
interruption. (466) Naked Ownership – right to dispose.
The right to recover is usually left with the naked
Now, we’re starting with a new topic and that is usufruct. ownership but in some cases, it comes with the usufruct.
Title VI -‐ USUFRUCT Who are the characters?

1. Usufructuary – the person or entity who is entitled
to enjoy the property of another
algene c.
84
2. Owner of the naked title – the title is now naked

the owner (Only who is the lessor.
because he no longer has the right to enjoy; the
the owner can There are times
term is “the owner of the naked title”; ang
allow somebody when the lessor
shortcut is “naked owner”
else to enjoy his may be a lessee
property) who is allowed to
Just read the characteristics you can find in the book of sub-‐lease.
Paras. As to origin May be created Created only be
1. Essential by: contract (But we
2. Natural have forced lease
 law
3. Accidental under Art. 448)
 contract
between the
There’s also a discussion there about the distinctions of
parties
usufruct and easement. We can’t distinguish yet because
 last will
we have to discuss easement pa. Just go back to this once
 prescription
we have finished easements.
As to the repairs Usufructuary has Lessee has no
the duty to make such duty; he can
Let us look at the distinctions between usufruct and lease.
ordinary repairs inform the lessor
As we have been going along, we have been discussing
lang about the
provisions on lease.
things needed to
be repaired
Usufruct Lease
As to taxes Usufructuary pays Normally does
As to Extent Covers all fruits Generally covers
for the annual not pay except
and uses only a particular
charges and taxes for VAT
(Usufructuary or specific lease
on the fruits
gets to use the (The lessee is
As to other things A usufructuary The lessee cannot
property and to given the right to
may lease the constitute a
enjoy its fruit.) use and possess
property itself to usufruct on the
but not the right
another. property leased.
Does the to the fruits;
usufructuary there are civil
need to pay the fruits (rents) CASE
naked owner? which are paid to
NO. There is the owner of the ELEIZEGUI vs. MANILA LAWN TENNIS CLUB: The SC said
nothing in the naked title) that usufruct is a right of superior degree to that which
Civil Code that arises from the lease. Between a usufructuary and a lessee,
provides such. the former has more rights. Usufruct is a real right and
But if there is a includes the jus fruendi and jus usendi.
provision in the
agreement of the Art. 563. Usufruct is constituted by law, by the will of
parties, then that private persons expressed in acts inter vivos or in a last
will prevail. will and testament, and by prescription. (468)
As to Nature of Real right Only a real right if
How is usufruct constituted?
the RIght the lease is for
1. By law
more than one
2. By the will of private persons expressed in acts
year and if it is
inter vivos or in a last will of testament
registered even if
3. By prescription
less than one year
AS to the Creator Can be created The lessor need
An example given by Paras for usufruct constructed by law:
of the Right only by the owner not be the owner
Usufruct of parents over the properties of their
or duly of the property.
unemancipated children. You already took this up in the
authorized agent, Most of the time,
Family Code. If there are children who receive income, like
acting in behalf of it is the owner
the young stars – who has the right of usufruct over the
algene c.
85
income? The parents because it is imposed by law. This

 Simultaneous usufruct
mode is not so popular.
Example: X will give the usufruct of the
farm to A, B, C and D. Lahat sila sabya-‐
The most popular one is number two: By the will of private
sabay.
persons expressed in acts inter vivos or in a last will of
testament. So this is the most common – when two people  Successive usufruct
Example: X will say na if A dies, the
agree. This is called voluntary or conventional.
usufruct will go to B. If B dies, the usufruct
will go to C. So, successive siya.
Another example is donation. The father will donate the
property to his son so that he won’t have to pay estate
It’s not here and in the provision but we also have what we
taxes when the father dies. But the father can say that he is
call universal usufruct – on the entire patrimony of the
only giving the naked title over the property and he will
owner. Meaning, the owner gives everything he owns in
continue to enjoy the usufruct for as long as he is alive. The
usufruct. Who would do that? I don’t know but it’s here.
father will use and enjoy the fruits while the title would
belong to the son.
We also have the single or particular usufruct wherein only
a portion of the patrimony of the owner is given in
Created mortis cause – in a last will and testament. Here,
usufruct.
the testator can put in his will that the property that he
owns (one parcel of land) will be shared by his two sons. He
In every case, from or to a certain day… So the parties can
can say there that A is the naked owner while B is the
agree. Pwede sabihin ni X na “Okay Y. I will give you my
usufructuary. That is number two.
farm from today until the end of December 31, 2020.”
Pwede rin “You can have usufruct over the property until
Number three is by prescription.
you die.” It doesn’t really matter if you have a time frame or
not ha. Does it mean that it will never end? Of course not.
Example: X possesses in good faith a parcel of land. The
It’s just not expressed but there is a term to it.
owner of the land is Y. In his last will and testament, X gave
to his sons: B the naked ownership of the land and to A the
X can also say “Y, I will give the usufruct of the farm to you.
usufruct. In due time, B may acquire the ownership of the
You can use it.” That’s pure usufruct – no conditions,
usufruct by acquisitive prescription.
whatsoever. We also have conditional usufruct like X will
say that he will give the usufruct provided that Y will let him
Art. 564. Usufruct may be constituted on the whole or a
use the latter’s condominium in Taguig.
part of the fruits of the thing, in favor of one more
persons, simultaneously or successively, and in every case
Usufruct may also be constituted on a right. Same with
from or to a certain day, purely or conditionally. It may
ownership and possession. Provided, that the right is not
also be constituted on a right, provided it is not strictly
purely personal or instransmissible.
personal or intransmissible. (469)
Example: The right to receive support cannot be
the object of usufruct. An illegitimate son who has
There are different kinds of usufruct:
the right to receive support from the father cannot
 Total usufruct – if the usufruct is constituted on
give such right to usufruct to his classmate. Such
the whole of the fruits
right is strictly personal, it is intransmissible.
Example: X is the owner of a farm with
lansones, rambutan and mangosteen. So X
There are other kinds of usufruct. If you look at your book,
can say that he can give his usufruct to Y
we also have:
and the latter can use it and harvest it.
 Normal usufruct -‐ involves not consumable (more
 Partial usufruct
often than not, the subject of a usufruct is not a
Example: X will only give the usufruct of
consumable thing like plant or building)
the farm but limited only to rambutan and
 Abnormal usufruct – usufruct constituted over
mangosteen. He can say that the usufruct
consumable things, imperfect usufruct
is not extended to lansones.
Can there be a usufruct over consumable
 Simple usufruct – in favor of one person
things? In the case of Alunan vs. Veloso,
 Multiple usufruct – in favor of more than one
the SC said that there can be usufruct of
person
money, because it is a fungible thing.
algene c.
86
Article 559 does not apply to

The established facts undoubtedly gave Pernes not
money because under 559, we are talking
only the right to use the property but also granted them,
of specific movable thing. But when it
among the Moralidad’s other kins, the right to enjoy the
comes to usufruct, it can be consumable
fruits thereof. We will go back to this case later.
or non-‐consummable.
Article 566 talks about the rights of the usfructuary. There
Usufruct can also be constituted over sterile animals (even
are many rights. But let us first start with the rights of the
if there is no fruit). It’s considered a usufruct over
naked owner. There are only two.
consumable or fungible thing. Meaning, you eat it nalang.
1. Article 581 – right to alienate
You treat it as consumable nalang. If you treat it as non-‐
2. Article 595 – right to construct works and make
consummable, then you use it for something else nalang
improvements
since the animal cannot bear fruit.
Art. 581. The owner of property the usufruct of which is
Art. 565. The rights and obligations of the usufructuary held by another, may alienate it, but he cannot alter its
shall be those provided in the title constituting the form or substance, or do anything thereon which may be
usufruct; in default of such title, or in case it is deficient, prejudicial to the usufructuary. (489)
the provisions contained in the two following Chapters
shall be observed. (470) The right to dispose remains in him so he can alienate. But
according to Article 581, even though he alienates the
The rights and obligations of the usufructuary shall be property, he cannot alter the form or substance of the
those provided in the title (in relation to Article 562) property held in usufruct.
constituting the usufruct. So, what will govern the
usufruct? The title constituting it or the agreement of the This means that the buyer must respect the usufruct if it
parties. still exists. The buyer cannot do anything thereon which
may be prejudicial to the usufructuary.
In default of such title, or in case it is deficient, the
provisions contained in the two following chapters shall Art. 595. The owner may construct any works and make
govern. In case of conflict, will prevail unless repugnant to any improvements of which the immovable in usufruct is
the mandatory provision of the Civil Code. So, mandatory susceptible, or make new plantings thereon if it be rural,
provisions only. provided that such acts do not cause a diminution in the
value of the usufruct or prejudice the right of the
CASE usufructuary. (503)
MORALIDAD vs. PERNES: Even though that the agreement Can he make improvements on the property? Yes. But
or document that she executed did not have the word according to Article 595, it must not cause decrease in the
“usufruct” on top but it is clear from the provisions of the value of the usufruct or prejudice the right of the prejudice.
document that it is a usufruct that was constituted.
Was it a lease? What else could it be? If you read So you can see na even though these are the rights of the
the document, it is a usufruct. naked owner… who is the person or entity given priority
According to SC, Usufruct, in essence, is nothing here? The usufructuary. The naked owner CAN pero may
else but simply allowing one to enjoy another’s property. It BUT. Meaning, if a person gives his property in usufruct,
is also defined as the right to enjoy the property of another there are lots of limitations that come with the agreement.
temporarily, including both the jus utendi and the jus His rights are curtailed and he limits his rights as an owner.
fruendi, with the owner retaining the jus disponendi or the So one must not give his rights to usufruct carelessly.
power to alienate the same.
It is undisputed that Moralidad, in a document Let’s go to the rights of the usufructuary.
dated July 21, 1986, made known her intention to give
Pernes and her other kins the right to use and to enjoy the Art. 566. The usufructuary shall be entitled to all the
fruits of her property. There can also be no quibbling about natural, industrial and civil fruits of the property in
Pernes being given the right "to build their own house" on usufruct. With respect to hidden treasure which may be
the property and to stay thereat "as long as they like. found on the land or tenement, he shall be considered a
stranger. (471)
algene c.
87
terminates, belong to the owner.

If the property is subject to usufruct earns income
In the preceding cases, the usufructuary, at the
(example: rental income), that belongs to the usufructuary.
beginning of the usufruct, has no obligation to refund to
That is of course, if it is not provided otherwise in the title
the owner any expenses incurred; but the owner shall be
constituting the usufruct. We are assuming that the title
obliged to reimburse at the termination of the usufruct,
constituting the usufruct has no such provisions.
from the proceeds of the growing fruits, the ordinary
expenses of cultivation, for seed, and other similar
Remember hidden treasure? If it is found by the
expenses incurred by the usufructuary.
usufructuary on the land of the naked owner, he shall be
The provisions of this article shall not prejudice
considered as a stranger. So who owns the hidden
the rights of third persons, acquired either at the
treasure? The naked owner. An exception is if the
beginning or at the termination of the usufruct. (472)
usufructuary is the finder of the hidden treasure. Pero if the
treasure is found by another person or by the naked owner,
Remember our possessor in good faith? He is entitled to
the usufructuary cannot ask for a share.
the fruits before legal interruption. But after that, he is
considered in bad faith. Once he is considered in bad faith,
Okay, hidden treasure is not considered as a fruit. The
he is no longer entitled to anything.
usufructuary is only entitled to the natural, industrial and
civil fruits.
But under this article, the situation is different. Who
planted the trees and growing crops here? The owner.
CASE
Once the property is given in usufruct and there are
pending or growing fruits, who can harvest them? The
BACHRACH vs. SEIFERT: According to Bachrach, if he dies,
usufructuary.
his wife daw will be the lifetime usufructuary of the
properties of his estate. What does that mean? She is
Natural or industrial fruits growing at the time the usufruct
entitled to the fruits.
begins, belong to the usufructuary. Natural fruits – pwede
He has 100,000 shares of stocks. If you have
yung cow and manganak siya. The offspring belongs to the
stocks, of course you expect to earn dividends. It may earn
usufructuary.
10 shares. That’s what happened here. So the civil issue are
stock dividends considered income (fruits)? Note, with cash
Those growing at the time the usufruct terminates belong
dividends, there’s no question about that.
to the owner.
In our jurisdiction, stocks dividends and cash
So, if the usufructuary incurred the epxenses for cultivation
dividends are considered fruits. Therefore, the usufructuary
of the crops, at the end of the usufruct, it will be returned
is entitled to that.
to the owner (the existing crops at the time the usufruct
terminates).
August 5, 2014
In the preceding cases, the usufructuary, at the beginning
We already discussed the rights of a naked owner. We only
of the usufruct, has no obligation to refund to the owner
have Articles 581 and 595. For the rights of the
any expenses incurred.
usufructuary, there is one whole section.
The owner cannot say to the usufructuary that the latter
shall pay the amount the owner spent on the fertilizer,
Regarding the case of Bachrach, it is similar with the case of
labor, seeds, etc. The naked owner is not entitled to
Orozco and Alcantara vs. Araneta wherein the SC
reimbursement under Article 567.But if there is an
established the jurisprudence that stocks dividends are
agreement or on the title constituting the usufruct, then
considered fruits. Therefore, it should be delivered to the
that will prevail.
usufructuary.
But the owner shall be obliged to reimburse at the
Under Article 567, we will encounter growing and pending
termination of the usufruct, from the proceeds of the
fruits again.
growing fruits, the ordinary expenses of cultivation, for
seed, and other similar expenses incurred by the
Art. 567. Natural or industrial fruits growing at the time
usufructuary.
the usufruct begins, belong to the usufructuary.
So, baliktad na. It is the owner now who makes the
Those growing at the time the usufruct
reimbursements from the proceeds of the growing fruits.
algene c.
88
Obviously, it is the usufruct who spent some expenses for

June 30, then the lessee will pay rentals directly to the
the cultivation, etc. then he must reimburse the expenses
owner.
of cultivation, for seed and other similar expenses.
If the lessee paid in advance for one year, then the
The provisions of this article shall not prejudice the rights
usufructuary has to give the 6 months worth of rent to the
of third persons, acquired either at the beginning or at the
owner. This is very simple.
termination of the usufruct.
We have here a possessor in good faith. What if that thing
Art. 569. Civil fruits are deemed to accrue daily, and belong
given in usufruct was possessed by a possessor, his rights
to the usufructuary in proportion to the time the usufruct
under the previous topic, are still available to him despite
may last. (474)
the fact that usufructuary is entitled to the fruits.
Let’s say, X is in possession of a parcel of land – it’s an Art. 570. Whenever a usufruct is constituted on the right to
orchard with lansones, rambutan and mangosteen. X receive a rent or periodical pension, whether in money or
planted the trees but he did not know that the land did not in fruits, or in the interest on bonds or securities payable
belong to him. Tapos, we have the absentee owner A who to bearer, each payment due shall be considered as the
doesn’t really mind his properties and decided to give the proceeds or fruits of such right.
land in usufruct to Y. The usufruct started on January 10, Whenever it consists in the enjoyment of benefits
2014. The owner and Y entered into an ordinary agreement accruing from a participation in any industrial or
(with no specific provisions). But note that X is still there on commercial enterprise, the date of the distribution of
the land. In August, it’s time for harvest na. Let’s say X was which is not fixed, such benefits shall have the same
able to harvest some fruits in July. In August 15, there was character.
legal interruption. In either case they shall be distributed as civil
fruits, and shall be applied in the manner prescribed in the
 From January 10 to August 15, Is the usufructaury
preceding article. (475)
entitled to the fruits? Who among X and Y are
entitled to the fruits? According here, si Y pero sa
previous article it’s X. According to the case of Alunan, there can be a usufruct
This is why we have Article 567. The last over money. What are examples of periodical pensions?
paragraph clearly provides “shall not Yung mga SSS.
prejudice the rights of third persons” so
possessor’s right will prevail. Let’s say X receives P5,000 a month as pension from SSS.
 Take note that the PGF’s right is only before legal Let’s say he doesn’t want to receive the SSS money
interruption. After August 15, the fruits will belong because he is financially secured so he will give his right to
to the usufructuary. collect his pension to Y. I don’t know if this is pwede. For
purposes lang ni of discussion okay?
There can be no pending civil fruits because they accrue
daily. When we talk of Article 567, pending fruits refer to The usufruct is over a right – the right is the property. The
natural and industrial fruits. pension that is received monthly by the usufructuary,
according to Article 570, shall be considered as the fruits of
Art. 568. If the usufructuary has leased the lands or such right – the civil fruits of the property subject the
tenements given in usufruct, and the usufruct should usufruct. So, whether in money or in fruits, or in the
expire before the termination of the lease, he or his heirs interest on bonds or securities payable to bearer.
and successors shall receive only the proportionate share
of the rent that must be paid by the lessee. (473) Whenever it consists in the enjoyment of benefits accruing
from a participation in any industrial or commercial
Can the usufructuary lease the property subject to usufruct enterprise, the date of the distribution of which is not
to another? fixed, such benefits shall have the same character.
Let’s say the lease is from January to December 2014 but in What about participation in a commercial enterprise?
June 30, the usufruct already terminated. So, from January Maybe the owner invests in a listed corporation. So another
to June, the lessee pays rental to the usufructuary. After example: Stock market. The owner does not have to give
the stocks in usufruct. He can give the right to receive the
dividends or to enjoy the benefits.
algene c.
89
is beyond the period of the usufruct

The rule: Each payment due shall be considered as the except leases of rural lands when there
proceeds or fruits of such right. In either case they shall be are annual crops that may be harvested at
distributed as civil fruits, and shall be applied in the a certain part of the year.
manner prescribed in the preceding article. What if, incidentally, the usufruct
ends in March but the harvest of the crops
They shall be distributed as civil fruits and applied in a will come in September? So the lease will
manner specified by law (Article 569). Meaning, they accrue be extended to September in order to
daily. So, you determine when the usufruct will end. accommodate the harvest of the crops.
3. He may alienate his right of usufruct
Just read the example in the book. I don’t like it. I think it’s If X is the usufructuary, can he give his
wrong. Take note ha, there is always unless there is an right as a usufructuary to Y? Yes. He can
agreement to the contrary. Why? It is always the title sell it, mortgage it, donate it.
constituting the usufruct which will prevail. Exception: Those that are intransmissible
like:
Art. 571. The usufructuary shall have the right to enjoy any  parental usufruct (usufruct of parents
increase which the thing in usufruct may acquire through over their unemancipated children)
accession, the servitudes established in its favor, and, in  usufruct granted on consideration of his
general, all the benefits inherent therein. (479) person (X will say: I will give my property
in usufruct because you’re my friend and I
Usufructuary has the right to enjoy: know you need this)
1. Any increase which the thing may acquire through  caucion juratoria (which we will discuss
accession later)
2. Servitudes established in its favor
3. In general, all the benefits inherent therein. The usufruct can alienate his right to usufruct but he cannot
alienate the property. He cannot mortgage the property
So very simple. But the ownership belongs to the naked but only the right to usufruct. What will now the
owner. Usufructuary only has the right to enjoy. mortgagee get? Right to enjoy the fruits or use the
property.
What can the usufructuary do with the thing which is the
subject of the usufruct? Let’s go to Article 572. Let’s go to abnormal or imperfect usufruct on things that
deteriorate. We discussed that normal usufruct is
Art. 572. The usufructuary may personally enjoy the thing constituted on non-‐consummable and things that do not
in usufruct, lease it to another, or alienate his right of deteriorate.
usufruct, even by a gratuitous title; but all the contracts he
may enter into as such usufructuary shall terminate upon Art. 573. Whenever the usufruct includes things which,
the expiration of the usufruct, saving leases of rural lands, without being consumed, gradually deteriorate through
which shall be considered as subsisting during the wear and tear, the usufructuary shall have the right to
agricultural year. (480) make use thereof in accordance with the purpose for
which they are intended, and shall not be obliged to return
What are his rights with respect to the property? them at the termination of the usufruct except in their
1. He can enjoy it himself or through another condition at that time; but he shall be obliged to indemnify
If the property is an orchard, he can use the owner for any deterioration they may have suffered by
the fruits or eat the fruits himself. He can reason of his fraud or negligence. (481)
sell the fruits or he can contract
somebody to allow someone to harvest Article 573 talks about abnormal usufruct or things that
2. He can lease the thing to another deteriorate.
He doesn’t need the consent of the naked
owner but the lease contract between the Can you give me something that deteriorates? Aircon. You
usufructuary and the lessee shall be co-‐ can give the use of aircon as a usufruct for 10 years. If it is
terminus with that of the usufruct itself. not functional anymore, it’s okay because it just has to be
He cannot enter into a lease contract that used in accordance to the purpose for which it is intended.
algene c.
90
Of course, the usufructuary should conduct regular

plants. That is if he uses them. If he only leaves them, then
cleaning. Yun na nga, he is only required to return the
he doesn’t have to replace.
aircon in its condition at the time of termination of
usufruct. He is not supposed to bring it back to its original
Article 576 is a continuation of Article 575.
condition.
Art. 576. If in consequence of a calamity or extraordinary
BUT if the aircon deteriorated because of his fraud or
event, the trees or shrubs shall have disappeared in such
negligence (like he never cleaned the aircon for 10 years),
considerable number that it would not be possible or it
he may be obliged to indemnify the value of the
would be too burdensome to replace them, the
deterioration, not the value itself.
usufructuary may leave the dead, fallen or uprooted
trunks at the disposal of the owner, and demand that the
Let’s go to Article 574 which deals with consummables.
latter remove them and clear the land. (484a)
Art. 574. Whenever the usufruct includes things which
cannot be used without being consumed, the usufructuary So there is a flood, typhoon, etc. that uproots the fruit-‐
shall have the right to make use of them under the bearing trees and it’s burdensome to replace them… Under
obligation of paying their appraised value at the Article 576, he can request the owner to remove them and
termination of the usufruct, if they were appraised when clean the land or do something else.
delivered. In case they were not appraised, he shall have
the right to return at the same quantity and quality, or pay Take note, it must be too burdensome. According to Paras,
their current price at the time the usufruct ceases. (482) if it is only slight burdensome, he must replace the dead
trunks whether or not he uses them.
We have many consummables, like the wine. The
usufructuary can drink and finish the wine. The Art. 577. The usufructuary of woodland may enjoy all the
usufructuary shall have the right to make use of them benefits which it may produce according to its nature.
under the obligation of paying their appraised value at the If the woodland is a copse or consists of timber
termination of the usufruct. Only when the wine is for building, the usufructuary may do such ordinary
appraised when delivered. If not, then he just have to give cutting or felling as the owner was in the habit of doing,
an exactly the same bottle of wine or pay the current price. and in default of this, he may do so in accordance with the
This is very easy. Why did they include this? It’s common custom of the place, as to the manner, amount and season.
sense. This is what we call as quasi-‐usufruct. In any case the felling or cutting of trees shall be
made in such manner as not to prejudice the preservation
It’s not really something that you use and you return. It’s of the land.
something that you use and reimburse the owner. Parang In nurseries, the usufructuary may make the
binili mo na rin. necessary thinnings in order that the remaining trees may
properly grow.
Art. 575. The usufructuary of fruit-‐bearing trees and shrubs With the exception of the provisions of the
may make use of the dead trunks, and even of those cut preceding paragraphs, the usufructuary cannot cut down
off or uprooted by accident, under the obligation to trees unless it be to restore or improve some of the things
replace them with new plants. (483a) in usufruct, and in such case shall first inform the owner of
the necessity for the work. (485)
The usufructuary of fruit-‐bearing trees has the right to
Woodland. What do you get from woodland? Are there
what? Aside from the provision under Article 575? If you are
trees there? This provision may not apply anymore because
the usufructuary of a fruit-‐bearing tree, what is your right?
we have PD 705 which prohibits the cutting of trees. It
The right to the fruits.
doesn’t matter if you planted the trees or if it’s in your
backyard. There are requirements under PD 705.
Aside from the right to the fruits, we also have Article 575.
The usufructuary can make use of the dead trunks. If the
Just for academic purposes, we will read Article 577 but this
trees are dead, he can use them. And even those cut off or
is no longer followed.
uprooted by accident. This time, he is not only using the
 The usufructuary of woodland may enjoy all the
right to the fruits but also his right to jus utendi or right to
benefits which it may produce according to its
use. But he has the obligation to replaced them with new
nature.
algene c.
91
How do you normally enjoy a forest? May

owner. If it is the usufructuary who is given the right to file
be you can go on picnic and use the trees
the action, he must have the proper authority. He can
as shade.
demand that he be given the authority. He may also
 If the woodland is a copse or consists of timber for
demand that the owner give him the necessary evidences
building, the usufructuary may do such ordinary
needed to pursue the case.
cutting or felling as the owner was in the habit of
doing, and in default of this, he may do so in
If in consequence of the enforcement of the action he
accordance with the custom of the place, as to the
acquires the thing claimed, the usufruct shall be limited to
manner, amount and season.
the fruits, the dominion remaining with the owner.
Copse – thicket of small trees
Obviosuly, the usufruct will now be converted from a
Hindi na ito pwede. So disregard this.
usufruct over a right to usufruct over a thing (real or
 In any case the felling or cutting of trees shall be movable property) and he is entitled to enjoy it and the
made in such manner as not to prejudice the fruits. Who will own it? The owner.
preservation of the land.
Also disregard this.
August 6, 2014
 In nurseries, the usufructuary may make the
necessary thinnings in order that the remaining Let’s go to Article 579 on improvements.
trees may properly grow.
Ito baka pwede pa to.
Art. 579. The usufructuary may make on the property held
 With the exception of the provisions of the in usufruct such useful improvements or expenses for
preceding paragraphs, the usufructuary cannot cut mere pleasure as he may deem proper, provided he does
down trees unless it be to restore or improve some not alter its form or substance; but he shall have no right
of the things in usufruct, and in such case shall first to be indemnified therefor. He may, however, remove
inform the owner of the necessity for the work. such improvements, should it be possible to do so without
(485) damage to the property. (487)
Art. 578. The usufructuary of an action to recover real

Can a usufructuary who makes useful improvements be
property or a real right, or any movable property, has the
considered as a builder in good faith? Article 579 is the
right to bring the action and to oblige the owner thereof
applicable provision if it is the usufructuary who makes the
to give him the authority for this purpose and to furnish
improvements. It doesn’t’ apply to a possessor in good
him whatever proof he may have. If in consequence of the
faith.
enforcement of the action he acquires the thing claimed,
the usufruct shall be limited to the fruits, the dominion
The usufructuary can make useful and luxurious
remaining with the owner. (486)
improvements. What are the conditions?
1. He must not alter the form and substance of the
Article 578 is another special usufruct. It is a usufruct
property held in usufruct
through an action to recover through the court.
If the property subject to usufruct is an
orchard and he builds hotels, then he is
If the owner does not want to undergo a tedious process
altering the form and substance of the
with the court, can he give his right to recover his property
property. Is he entitled to be indemnified
in usufruct? Yes. Under Article 578.
for the building of the hotel with the
consent of the owner? No.
The usufructuary of an action to recover real property
2. He has the right to remove the improvements if it
(accion publiciana, accion reinvindicatoria; hindi na FE or
is possible to do so without damage to the
UL) or a real right, or any movable property, has the right
property
to bring the action and to oblige the owner thereof to give
Okay lang alisin niya ang hotel kasi walang
him the authority for this purpose and to furnish him
damage naman sa land.
whatever proof he may have.
3. He may also set off the improvements he may have
made on the property against any damage to the
When you reach remedial law, you will learn that there are
same
certain procedures to follow before anyone can file a case.
If there is no damage, there is no need to
He must have a cause of action which must belong to the
set off (refer to Article 580)
algene c.
92
the part allotted to the co-‐owner shall belong to the

Art. 580. The usufructuary may set off the improvements usufructuary.
he may have made on the property against any damage to
the same. (488) If there is partition, A, B, C and D, and A gets the north-‐east
portion, then the usufruct will be focused on that particular
CASE portion of the land.
MORALIDAD vs. PERNES: A lessee who makes We already looked at the rights of usufructuary. Let’s go to
improvements has more rights than the usufructuary. the obligations of the usufructuary.
Because the lessee, when he makes improvements in good
faith and the improvements were related into the purpose Art. 583. The usufructuary, before entering upon the
for which the lease contract is entered into, then he can ask enjoyment of the property, is obliged:
for ½ of the value of the improvements. But the (1) To make, after notice to the owner or his
usufructuary cannot. The usufructuary can only set off if legitimate representative, an inventory of all the property,
the naked owner is liable for damages. which shall contain an appraisal of the movables and a
description of the condition of the immovables;
Art. 582. The usufructuary of a part of a thing held in (2) To give security, binding himself to fulfill the
common shall exercise all the rights pertaining to the obligations imposed upon him in accordance with this
owner thereof with respect to the administration and the Chapter. (491)
collection of fruits or interest. Should the co-‐ownership cease
by reason of the division of the thing held in common, Is the word “constitution” used as a noun or a verb? You
the usufruct of the part allotted to the co-‐owner shall belong have to be able to distinguish between “constitution” and
to the usufructuary. (490) “entering” or “enjoyment.”
Illustration: A parcel of land, an orchard, with lansones, Maybe the naked owner and the usufructuary constituted
mangosteen and rambutan are co-‐owned by A, B, C and D. the usufruct on August 4, 2013. Does that mean that
A gives his ideal share to the usufruct to X. Presumably, that because the usufruct was already constituted, can the
is ¼ of the ideal share kasi equal. usufructuary already enjoy physically the property? The
 Can the usufructuary harvest the mangosteen, answer is no.
lansones and rambutan?
 Is there a specific portion where he can harvest or Under Article 583, before entering upon the enjoyment of
can he harvest it entirely? the property, he has to make an inventory. So, for
 If he harvests all the fruits, does he have any movables, he must appraise them (what is the value of the
obligation to the other co-‐owners? car, what is its condition). For immovable, he also needs to
appraise them (how big is the land, how many trees are
As a usufructuary, he only has the right over the ¼ because there).
he is the usufructuary of the right of A. The right of A is: he
is entitled to ¼ of the harvest. He must notify the owner that he is going to make the
inventory. So the owner will send the representative or the
 Is the usufructuary obliged to contribute to the owner will be there. If he does not notify the owner, then
expenses for cultivation, PGP? the owner will not be bound by his inventory. This is the
The co-‐owner must contribute in accordance to his first obligation: to make an inventory.
proportionate share to the expenses. Therefore, because
under Article 582, he shall exercise the rights pertaining to The second one is to give security. Under the provisions of
the owner (with respect to administration), he shall also the Civil Code, the usufructuary is not obliged to pay rental.
take over of the obligations of the co-‐owner. There is no such obligation but there is an obligation to give
security, binding himself to fulfill the obligations imposed
So the usufructuary will act as a co-‐owner of the property upon him. So generally, he needs to take care of the
with respect to his right to enjoy, not the right to dispose. property held in usufruct.
The next part: Should the co-‐ownership cease by reason of Take note that these duties under Article 583 are not
the division of the thing held in common, the usufruct of necessary for the right to usufruct to begin. Meaning, the
algene c.
93
usufructuary already acquires the right to usufruct (like he

What is the purpose of giving security? To answer for the
can lease it) but the physical enjoyment (like use of the
damage to the property and to ensure faithful compliance
fruits), not yet available.
of the duties of the usufructuary.
These obligations are merely necessary for the physical
What is the form of security? Anything that has value. Cash,
enjoyment of the right of usufructuary. The right of
bond, title, etc. As long as it is acceptable to the naked
usufruct is not dependent on the making of the inventory
owner.
and giving of the security.
Art. 585. The usufructuary, whatever may be the title of
General obligations:
the usufruct, may be excused from the obligation of
1. Make inventory
making an inventory or of giving security, when no one
2. Give security
will be injured thereby. (493)
During the usufruct:
1. Take care of the property Instances when number 2 is not required:
1. When no one will be injured thereby
2. When there is a waiver by the naked owner
After the usufruct
This is the prerogative of the owner. He
1. Return the property and in proper cases, indemnify
can waive the obligation of making
inventory and giving of security
These are the general obligations ha. There are other
obligations pertaining to specific type of usufruct. 3. When there is a stipulation in the will or the
contract
4. When the usufructuary is the donor of the
Are there times when the giving of security is not required?
property who has reserved the usufruct for himself
Yes, under Article 584.
5. When there is a parental usufruct
Exception: When the parents contract a
Art. 584. The provisions of No. 2 of the preceding article
second marriage (related this with the
shall not apply to the donor who has reserved the usufruct
provison of the Family Code) provided
of the property donated, or to the parents who are
that each child’s property shall not exceed
usufructuaries of their children's property, except when
P50,000 in which case the parents have to
the parents contract a second marriage. (492a)
file a bond not as a usufructuary but as a
guardian or an administrator
The obligation to give security shall not apply to:
6. When there is caucion juratoria
 The donor who has reserved the usufruct of the
property donated
Art. 586. Should the usufructuary fail to give security in
Example: X, father, owns a 10-‐hectare
the cases in which he is bound to give it, the owner may
parcel of land. He feels that he is c
demand that the immovables be placed under
already old and he is dying soon. He
administration, that the movables be sold, that the public
doesn’t want his son to pay estate taxes
bonds, instruments of credit payable to order or to bearer
when he is gone so he donated his land to
be converted into registered certificates or deposited in a
the son. But he said that he will keep the
bank or public institution, and that the capital or sums in
usufruct on himself so he can continue
cash and the proceeds of the sale of the movable property
enjoying it while he is still alive.
be invested in safe securities.
Can the son say “Okay but you
The interest on the proceeds of the sale of the
have to give me a security.”? Of course
movables and that on public securities and bonds, and the
not.
proceeds of the property placed under administration,
 To the parents who are usufructuaries of their
shall belong to the usufructuary.
children’s property
Furthermore, the owner may, if he so prefers,
Except: When the parents contract a
until the usufructuary gives security or is excused from so
second marriage
doing, retain in his possession the property in usufruct as
administrator, subject to the obligation to deliver to the
usufructuary the net proceeds thereof, after deducting the
sums which may be agreed upon or judicially allowed him
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for such administration. (494) administrator, subject to the obligation to deliver to the
usufructuary the net proceeds thereof, after deducting the
What is the effect of failure to give security? sums which may be agreed upon or judicially allowed him
Par. 1: Should the usufructuary fail to give security in the for such administration.
cases in which he is bound to give it, the owner may
demand that the immovables be placed under He can retain possession and administer the property
administration, that the movables be sold, that the public himself subject to deliver to the usufructuary the net
bonds, instruments of credit payable to order or to bearer proceeds thereof. From the moment the usufruct is
be converted into registered certificates or deposited in a constituted, the usufruct is already entitled to the fruits. Is
bank or public institution, and that the capital or sums in he (the owner) obliged to deliver the fruits now? Just xxx
cash and the proceeds of the sale of the movable property to the usufructuary. Makuha lang ni usufructuary ang
be invested in safe securities. proceeds if madeliver na niya ang security.
When required to give security and the usufructuary is not Those are the consequences for failure to give security.
able to do so but the usufruct has already been constituted,
what is the effect of that? He cannot enter into the What are the rights of the usufructuary if he fails to give the
enjoyment of the property. security?
 If it is an orchard, the fruits have to be harvested  He cannot enjoy or possess the property
na diba? What will happen if the usufructuary  He cannot administer the property
cannot enter? He can demand that they be placed  He cannot execute the lease thereon
under administration. Ipa-‐administer muna sa iba.  He cannot collect the matured credits
 What about the things that are already made  He can alienate his right to the usufruct
subject to usufruct? Like the tractor, the car, etc?  He can just sell his right to somebody who can
He can demand that they be sold. afford to give security and that person will be able
 What about public bonds and instruments of to enjoy all the fruits of the usufruct
credits, etc.? He can demand that they be
converted to registered certificates. Let’s go to caucion juratoria.
 What about the money? He can demand that they
be invested in safe securities. (like time deposit) Art. 587. If the usufructuary who has not given security
These are the effects when the usufructuary cannot enter claims, by virtue of a promise under oath, the delivery of
yet and enjoy the rights subject of the usufruct, not the the furniture necessary for his use, and that he and his
right to usufruct ha but the “ rights subject of the family be allowed to live in a house included in the
usufruct.” usufruct, the court may grant this petition, after due
consideration of the facts of the case.
Par. 2: The interest on the proceeds of the sale of the The same rule shall be observed with respect to
movables and that on public securities and bonds, and the implements, tools and other movable property necessary
proceeds of the property placed under administration, for an industry or vocation in which he is engaged.
shall belong to the usufructuary. If the owner does not wish that certain articles be
sold because of their artistic worth or because they have a
The interest of the sale of the movables shall belong to the sentimental value, he may demand their delivery to him
usufructuary. Remember that the movables belong to the upon his giving security for the payment of the legal
naked owner. But the interest is considered as a civil fruit interest on their appraised value. (495)
and shall belong to the usufructuary. Let’s say the
movables amounted to P5M, then the entire P5M belongs Par. 1: If the usufructuary who has not given security claims
to the owner. The usufructuary is entitled only to the (this means that he is obliged to give security and not
interest of the money. exempt), by virtue of a promise under oath, the delivery of
the furniture necessary for his use, and that he and his
What about the proceeds of the harvest? Shall belong to family be allowed to live in a house included in the usufruct,
the usufructuary. What else? the court may grant this petition, after due consideration of
Par. 3: Furthermore, the owner may, if he so prefers, until the facts of the case.
the usufructuary gives security or is excused from so
doing, retain in his possession the property in usufruct as
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So here, the usufructuary has the obligation to give security

relates to Article 586. So the movables na nakati-‐
but hindi niya kaya. What can he do? This person who has a
wangwang there because the owner does not choose to
usufruct constituted over a house, for him and his family,
administer the property, he may demand that it be sold.
and some furnitures and tools he need to survive… He has
Otherwise, it may deteriorate.
to go to court and file a petition. At the same time, he
needs to make a sworn statement under oath and ask the
But there is another option given to him. May sentimental
court to declare that he is allowed to enter into the
value yung movables ni owner and he doesn’t want to sell
property subject to usufruct by virtue of caucion juratoria.
it. He may demand their delivery to him. BUT he must give
security for the payment of legal security for their
Caucion juratoria is a promise under oath. What is this
appraised value. Even if the movables are not fruit-‐bearing,
promise? That he will take care of the property given to him
they are supposed to earn interest (if ibenta) but the owner
in usufruct and that he will return the thing after the
chooses not to sell the movables and they are delivered to
termination of the usufruct. So, this will take the place of
him, then he has to pay interest on the appraised value of
security. The basis is necessity and humanity.
the movables. He must give security to assure the payment
of the legal interest to the usufructuary the moment the
This caucion juratoria is not applicable to all kinds of
latter gives the security. Take note that the usufructuary is
usufruct. It only applies to usufruct which concerns the
entitled to own that.
following:
1. Furnitures
August 7, 2014
2. House
3. Tools and Implements
We are done with caucion juratoria. Let’s now go to Article
588.
Par. 2: The same rule shall be observed with respect to
implements, tools and other movable property necessary
Art. 588. After the security has been given by the
for an industry or vocation in which he is engaged.
usufructuary, he shall have a right to all the proceeds and
benefits from the day on which, in accordance with the
Again, the usufructuary must:
title constituting the usufruct, he should have commenced
1. Make the necessary petition in court
to receive them. (496)
He must ask the court for the delivery of
some articles to him and that he and his
family be allowed to live in a house If eventually, the usufructuary manages to produce the
included in the usufruct. security required, he shall have a right to all proceeds and
2. He must make a sworn promise under oath that he benefits from the day on which, in accordance with the title
would take good care of the property and return it constituting the usufruct, he should have commenced to
at the end of the usufruct receive them.
Nobody is saying that he is entitled to everything from the

Once it is approved by the court, he need not give the
day the usufruct is constituted. The provision is saying that
security. He can now enter and enjoy the property subject
“Whatever is provided in the title constituting the
the usufruct.
usufruct.” It depends on the agreement.
Par. 3: If the owner does not wish that certain articles be
Normally, there is a retroactive effect.
sold because of their artistic worth or because they have a
sentimental value, he may demand their delivery to him
upon his giving security for the payment of the legal Art. 589. The usufructuary shall take care of the things
given
interest on their appraised value.
in usufruct as a good father of a family. (497)
What do you understand by this sentence? If the movables
are not sold, what will happen to the movables? Like they How should the usufructuary take good care of the things
are just there in the property and wala pa nakapasok si given to him in usufruct? Diligence of a good father of a
usufructuary. So it may deteriorate. family.
The Civil Code has a typo. No matter how you look at, the Art. 590. A usufructuary who alienates or leases his right
last sentence of Article 587 does not relate to Article 587. It of usufruct shall answer for any damage which the things
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in usufruct may suffer through the fault or negligence of Par. 2: If the animals on which the usufruct is constituted
the person who substitutes him. (498) should all perish, without the fault of the usufructuary, on
account of some contagious disease or any other
What if the usufructuary leases out the property to uncommon event, the usufructuary shall fulfill his
another? According to Article 590, he shall answer for any obligation by delivering to the owner the remains which
damages which the thing in usufruct may suffer through may have been saved from the misfortune.
the fault or negligence of the person who substitutes him. If, by no fault of the usufructuary, all of the animals
He shall be responsible for the acts or omissions of the die, his obligation is to deliver the remains to the naked
lessee. owner.
The naked owner does not have to look for lessee. He can Par. 3: Should the herd or flock perish in part, also by
go directly to the usufructuary for the damages, if ever. accident and without the fault of the usufructuary, the
usufruct shall continue on the part saved.
Art. 591. If the usufruct be constituted on a flock or herd of Obviously, there is no total loss of the thing subject
livestock, the usufructuary shall be obliged to replace with to the usufruct; only part of the herd perished and the
the young thereof the animals that die each year from usufruct will continue on whatever is left.
natural causes, or are lost due to the rapacity of beasts of
prey. Par. 4: Should the usufruct be on sterile animals, it shall be
If the animals on which the usufruct is constituted considered, with respect to its effects, as though
should all perish, without the fault of the usufructuary, on constituted on fungible things.
account of some contagious disease or any other Normally, what will the usufructuary do with the
uncommon event, the usufructuary shall fulfill his animals? He can use them to ease their burden (like
obligation by delivering to the owner the remains which carabaos) or if the animals are sterile, xxx. If the animal is
may have been saved from the misfortune. sterile, it doesn’t have any fruit. So they are treated as
Should the herd or flock perish in part, also by fungible or replaceable.
accident and without the fault of the usufructuary, the
usufruct shall continue on the part saved. Let’s go to Article 592 which talks about ordinary repairs.
Should the usufruct be on sterile animals, it shall
be considered, with respect to its effects, as though Art. 592. The usufructuary is obliged to make the ordinary
constituted on fungible things. (499a) repairs needed by the thing given in usufruct.
By ordinary repairs are understood such as are
Article 591 refers to the usufruct on a flock or herd of required by the wear and tear due to the natural use of the
livestock. thing and are indispensable for its preservation. Should
the usufructuary fail to make them after demand by the
If the usufruct is on the flock or herd of livestock, can the owner, the latter may make them at the expense of the
usufructuary use the animals for meat or milk? Take note ha usufructuary. (500)
na if the usufruct is constituted on a flock or herd, the
subject of the usufruct are the animals. The usufructuary is What are ordinary repairs? Two requisites:
entitled to the young of the animals or the milk or the wool
1. They are required by the ordinary wear and tear
from the sheep.
due to the natural use of the thing.
2. They are indispensable for the preservation of the
Par. 1: If the usufruct be constituted on a flock or herd of thing.
livestock, the usufructuary shall be obliged to replace with
the young thereof the animals that die each year from Let’s say we have a house. The usufruct is over the house.
natural causes, or are lost due to the rapacity of beasts of The roof is already full of rust. The house is 50 years old na.
prey. So, are the required repairs to the roof, because of the
Aside from that, does he have to replace the natural use of the house, considered as ordinary repairs?
young? No need. But he has to replace with the young the Yes.
animal that die from natural cases or eaten up by wild
beasts. Does the usufructuary need to bug the naked owner before
he can make the ordinary repairs?
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No. It is the obligation of the usufructuary. The

According to Article 594, if the owner should make the
usufructuary is obliged to make the ordinary repairs needed
extraordinary repairs, he shall have a right to demand of
by the thing given in usufruct.
the usufructuary the legal interest on the amount
expended for the time that the usufruct lasts.
What if he fails to make those repair?
1. The naked owner may make the ordinary repairs
This time, it is the naked owner who is entitled to legal
2. He may charge the expenses to the usufructuary
interest on the amount that he spent on the extraordinary
repairs. Why? Because the benefits are for the usufructuary
According to Paras, what are the requisites for the
and not for the naked owner. For as long as the usufruct is
usufructuary to be obliged to make ordinary repairs?
subsisting, then the usufructuary must pay on the amount
1. They are required by the wear and tear due to the
spent by the naked owner.
natural use of the thing
2. They are indispensable for its preservation
This particular kind of extraordinary repair… Should he not
3. They must have occurred during the usufruct
make them when they are indispensable for the
preservation of the thing (like the example in the book
When the roof, at the time the usufruct is constituted, was
where the roof was hit by lightning and the roof
already rusty and full of kalawang, then that is not his
disappeared), the usufructuary may make them; but he
responsibility. The wear and tear must happen during the
shall have a right to demand of the owner, at the
usufruct.
termination of the usufruct, the increase in value which the
immovable may have acquired by reason of the repairs.
Art. 593. Extraordinary repairs shall be at the expense of
the owner. The usufructuary is obliged to notify the owner
He is not really entitled to the value or the amount that he
when the need for such repairs is urgent. (501)
spent but the increase in the value which the
improvements may have acquired by reason of the repairs.
What about extraordinary repairs? They shall be at the
expense of the owner.
There’s a table in your book about the three kinds of
extraordinary repairs. Of course, the least important: Those
How can we know that the thing subject to usufruct needs
caused by natural use but not needed for preservation. If
extraordinary repairs? The usufructuary because he is the
not needed for preservation, not so urgent diba. Article 494
one using the property. Hence, he has the obligation to
only talks about those needed for preservation.
notify the naked owner when the need for such repair is
urgent.
According to Paras, if the extraordinary repairs are not
needed for preservation, the naked owner is the one
There are three kinds of extraordinary repairs:
responsible but the usufructuary cannot be allowed to
1. Those caused by natural use but not needed for
make them nor are they required to make them. There is no
preservation
necessity for preservation here. BUT if the naked owner
2. Those caused by abnormal or exceptional
makes the extraordinary repairs, then he can ask for legal
circumstances and needed for preservation
interested with respect to the amount spent.
3. Those caused by abnormal or exception
circumstances but are not needed for preservation
We already took up Article 595. (Go to page 26 )
Art. 594. If the owner should make the extraordinary Art. 596. The payment of annual charges and taxes and of
repairs, he shall have a right to demand of the those considered as a lien on the fruits, shall be at the
usufructuary the legal interest on the amount expended expense of the usufructuary for all the time that the
for the time that the usufruct lasts. usufruct lasts. (504)
Should he not make them when they are
indispensable for the preservation of the thing, the There are so many kinds of taxes. This provision of Article
usufructuary may make them; but he shall have a right to 596 is very simple. Our author tried to segregate taxes.
demand of the owner, at the termination of the usufruct,
the increase in value which the immovable may have So, the payment of annual taxes and charges, when we talk
acquired by reason of the repairs. (502a) of this, are we talking about realty taxes? Sometimes, when
there is a usufruct, it doesn’t necessarily mean that the
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usufructuary earns income. Maybe he is only entitled to use

who built the road, it is a partial usufructuary and it is not
it but he is not really earning income. So there is no income
obliged to pay the realty taxes.
tax to pay.
MERCADO vs. REAL: There are intances where the
However, the taxes stated under Article 596, according to
usufructuaries, like in this case, were not given possession
Paras, do not refer to the realty taxes. They refer to income
of the property or were not enjoying the property. They
tax or sales tax. Income tax – only if the usufructuary earns
were just given the right to the fruits. The fruits, meaning
income derived from the property subject of the usufruct.
the income, was just delivered to them in a monthly basis.
That could be a perfectly binding legal usufruct agreed by
Annual charges – ordinary repairs and necessary expenses
the parties.
of cultivation. Just apply what the author is saying about
Here, the usufructuary, just waited for their share
annual charges and taxes.
in the fruits. Instead of giving the full amount of the fruits
to the usufructuary, the naked owner deducted for the land
Art. 597. The taxes which, during the usufruct, may be
taxes payment, this is not a voluntary payment of taxes on
imposed directly on the capital, shall be at the expense of
the part of the usufructuary. Article 597 is very clear that
the owner.
said payment is the obligation of the naked owner.
If the latter has paid them, the usufructuary shall
The second paragraph only applies if the payment
pay him the proper interest on the sums which may have
is voluntarily made by the usufructuary. Pag-‐voluntary, they
been paid in that character; and, if the said sums have
can only get the refund of payment upon the termination
been advanced by the usufructuary, he shall recover the
of the usufruct. In this case, the second paragraph of
amount thereof at the termination of the usufruct. (505)
Article 597 cannot be applied.
Article 597 talks about the taxes that the naked owner has
Let’s continue with Article 598. Earlier, we looked at
to pay despite the fact that the property is subject to a
universal usufruct. Does this provision refer to universal
usufruct. These are the taxes which may be imposed
usufruct? Will anyone construct usufruct on everything that
directly on the capital.
he owns? Would you? It would seem like it is being done.
What is the purpose of doing this? To escape creditors.
According to Paras, these taxes are the realty taxes – the
annual real estate taxes. It shall be at the expense of the
Art. 598. If the usufruct be constituted on the whole of a
owner.
patrimony, and if at the time of its constitution the owner
has debts, the provisions of Articles 758 and 759 relating to
If the owner pays them, the usufructuary shall pay the
donations shall be applied, both with respect to the
proper interest. Why? Because he is the one benefiting the
maintenance of the usufruct and to the obligation of the
property while the naked owner is paying the taxes. The
usufructuary to pay such debts.
least he can do is to pay the interest of the amount paid by
The same rule shall be applied in case the owner is
the owner.
obliged, at the time the usufruct is constituted, to make
periodical payments, even if there should be no known
If the said sums have been advanced by the usufructuary,
capital. (506)
he shall recover the amount thereof at the termination of
the usufruct. There may be times when the naked owner is
not in the country or is absent and the usufructuary According to this article, If the usufruct be constituted on
advances the payment of the taxes, can he get a refund the whole of a patrimony, and if at the time of its
from the naked owner? The provision is not saying that he constitution the owner has debts, the provisions of Articles
can (?). But it provides when he can claim – only at the time 758 and 759 relating to donations shall be applied, both
of the termination of the usufruct. with respect to the maintenance of the usufruct and to the
obligation of the usufructuary to pay such debts.
CASES Art. 758. When the donation imposes upon the
donee the obligation to pay the debts of the
BISLIG BAY vs. GOVERNMENT OF SURIGAO: The issue here donor, if the clause does not contain any
is very simple. Who is the owner of the land? The declaration to the contrary, the former is
government. What is the claim here? Even if it is the one understood to be liable to pay only the debts
which appear to have been previously contracted.
In no case shall the donee be responsible for the
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debts exceeding the value of the property

naked owner did not reserve
donated, unless a contrary intention clearly
sufficient property to pay his debts
appears. (642a)
o So this is when the naked
owner has existing debts and
Art. 759. There being no stipulation regarding the
he gave everything in
payment of debts, the donee shall be responsible
usufruct, there is a
therefor only when the donation has been made in
presumption that it was done
fraud of creditors.
in fraud of creditors and the
The donation is always presumed to be in
usufructuary is required to
fraud of creditors, when at the time thereof the
pay
donor did not reserve sufficient property to pay his
debts prior to the donation. (643)
Article 598 particularly applies if a person donated
everything but reserved to himself the usufructuary
The same rule shall be applied in case the owner is obliged,
thereof.
at the time the usufruct is constituted, to make periodical
payments, even if there should be no known capital.
So what is the situation here? The one who donated is the
usufructuary. Is the donor who reserved the usufructuary
What if the naked owner is the putative father who is
to himself required to pay the new debts of the new naked
ordered by the court to give support to the illegitimate son?
owner? No, unless there is a declaration. BUT he is required
What happens now if he gives usufruct to everything he
to pay his own debts.
owns? He has no access to the fruits.
Who has the debts? He who donated the property. He
So what is the situation here?
donated everything (except the right to use the fruits) to
At the time of the constitution, he has existing debts or is
the naked owner. Those are his debts, that’s why, he as a
required to make periodic payments.
usufructuary has to pay for them.
What are the rules?
Art. 599. The usufructuary may claim any matured credits
1. According to Article 758, if there is a stipulation
which form a part of the usufruct if he has given or gives
that the usufructuary is required to pay the debts:
the proper security. If he has been excused from giving
a. Pay only the prior or existing debts (not for
security or has been able to give it, or if that given is not
debts constructed after the constitution of the
sufficient, he shall need the authorization of the owner, or
usufruct)
of the court in default thereof, to collect such credits.
Exception: If there is a declaration to the
The usufructuary who has given security may use
contrary – unless it is specifically stated in
the capital he has collected in any manner he may deem
the title constituting the usufruct that the
proper. The usufructuary who has not given security shall
usufructuary has to pay all the debts
invest the said capital at interest upon agreement with the
including the debts incurred after the
owner; in default of such agreement, with judicial
constitution
authorization; and, in every case, with security sufficient
b. Pay only the debts up to the value of the
to preserve the integrity of the capital in usufruct. (507)
property subject of the usufruct
Exception: Unless the contrary is intended
2. If there is no stipulation to pay the naked owner Don’t ask me what matured credits are. I don’t know. Just
(he just gives everything), the applicable provision take note of the word. If the usufruct constituted, includes
is Article 759 the right to claim matured credits, then the usufructuary
a. General rule: The usufructuary is not obligated can claim matured credits if he has given the security.
to pay
b. Exception: The usufructuary is obliged to pay if If the usufructuary is among those not required to give
the usufruct was constituted in fraud of security or has not given sufficient security, he must get the
creditors authorization from the owner or from the court in default
 “In fraud of creditors”: this is thereof to collect matured credits.
presumed when from the time of the
constitution of the usufruct, the What will the usufructuary do?
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 This person, the usufructuary, who has given

2. He can pay a periodical pension equivalent to the
security may use the capital he has collected in any
loss
manner he may deem proper.
How much income did the usufructuary
 The usufructuary who has not given security (and
earn with respect to the property before it
he has acquired the consent of the owner or of the
was foreclosed.
court to collect), shall invest the said capital at
3. In any other similar way
interest upon agreement with the owner; in
default of such agreement, with judicial
There’s really no exact method of compensating the
authorization; and, in every case, with security
usufructuary. It really depends on the capacity of the naked
sufficient to preserve the integrity of the capital in
owner. He may indemnify or compensate the usufructuary.
usufruct.
Paras also said that Article 600 is applicable to pledged
Just take note of this. I’m not really familiar with the terms.
movable, by analogy. Take note that this article talks about
only about immovable property. When we talk about
Art. 600. The usufructuary of a mortgaged immovable immovable, the contract is mortgage. What if the property
shall not be obliged to pay the debt for the security of subject to the usufruct is a car or jewelry? What Paras is
which the mortgage was constituted. saying is that this article may be applied to a pledged
Should the immovable be attached or sold movable provided the possession of the personal property
judicially for the payment of the debt, the owner shall be is with the usufruct.
liable to the usufructuary for whatever the latter may lose
by reason thereof. (509) Art. 601. The usufructuary shall be obliged to notify the
owner of any act of a third person, of which he may have
What is the situation under Article 600? knowledge, that may be prejudicial to the rights of
The immovable property subject of the usufruct has been ownership, and he shall be liable should he not do so, for
mortgaged. It is already mortgage. damages, as if they had been caused through his own
fault. (511)
The usufructuary of a mortgaged immovable shall not be
obliged to pay the debt for the security of which the Definitely, the usufructuary who is there in the property. So
mortgage was constituted. Again, he is not obliged to make he knows what is going on. What if there is a builder in bad
the monthly installments. faith there that the naked owner doesn’t know about? The
usufructuary is obliged to notify the owner of which he may
Should the immovable be attached or sold judicially for the
have knowledge prejudicial to the rights of ownership.
payment of the debt, the naked owner shall be liable to the
usufructuary for whatever the latter may lose by reason
If he does not notify the owner, he will be liable for
thereof. If the land and the building has already been sold
damages as if they had been caused through his own fault.
in a public auction, there is a new owner. After the one year
So whatever damage is created by the builder in bad faith,
redemption period lapses, then the purchaser can now take
the naked owner can hold the usufructuary liable because
possession of the property.
the latter is obliged to notify but he did not.
What will happen to the usufructuary? He is left with no
What are the instances where the usufructuary is required
property. So it is the obligation of the naked owner to
to notify?
indemnify the usufructuary.
 If a third party commits acts prejudicial to the
“rights of ownership” as in disturbance to the
According to Paras, how will be the liability of the naked
possession of the usufructuary
owner by extinguished?
 If urgent repairs are needed
1. By constituting a new usufruct over an equivalent
estate  If an inventory at the beginning of the usufruct is
made
If the naked owner has other property,
then he can replace the property subject
What are the effects if the usufruct fails to notify?
to the usufruct which was attached and
sold in a public auction  The usufructuary is liable for damages as if they
have been caused by his own fault. (Refer to
Article 601)
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 The usufructuary cannot make the extraordinary

What is an example of contrary stipulation even if it is not
repairs needed. But if necessary, no need for
expressedly provided in the title? Example: A is made the
notification. (Refer to Article 593)
usufructuary of B in order that he could enable his son to
 The inventory can go on but the naked owner may
get a college degree. Even if A dies before his son
later point the discrepancies and the omissions in
graduates, the usufruct is deemed to continue.
the inventory. (Refer to Article 583)
By the expiration of the period for which it was
Art. 602. The expenses, costs and liabilities in suits brought
constituted, or by the fulfillment of any resolutory
with regard to the usufruct shall be borne by the
condition provided in the title creating the usufruct
usufructuary. (512)
By the expiration of the period for which it was
That is also the obligation of the usufructuary.
constituted – this is very easy; if the usufruct is constituted
only for 10 years, then at the end of the period, it is
Let’s go to extinguishment of usufruct.
automatically extinguished.
Art. 603. Usufruct is extinguished:

What if the period has not yet expired by the usufructuary
(1) By the death of the usufructuary, unless a
dies before the expiration of the period? Will it extinguish
contrary intention clearly appears;
the usufruct? Whatever comes first – the death of the
(2) By the expiration of the period for which it
usufructuary or the expiration of the period (generally
was constituted, or by the fulfillment of any resolutory
speaking) if there is no contrary intention.
condition provided in the title creating the usufruct;
(3) By merger of the usufruct and ownership in
Can the usufruct be constituted in favor of one person? The
the same person;
answer is yes. Corporation is a juridical person. We know
(4) By renunciation of the usufructuary; that a juridical person dies. The maximum term of
(5) By the total loss of the thing in usufruct;
corporation is 50 years. If after the 50 th year, the
(6) By the termination of the right of the person
corporation was not renewed, then it is deemed to have
constituting the usufruct;
died. Therefore, the usufruct is also extinguished.
(7) By prescription. (513a)
By the fulfillment of any resolutory condition
So Article 603 provided for the different ways on how provided in the title creating the usufruct – a resolutory
usufruct may be extinguished. condition is one which the happening of which extinguishes
the obligation.
By the death of the usufructuary, unless a contrary
intention clearly appears CASE
If the naked owner dies, the usufruct is not MORALIDAD vs. PERNES: I hope you read this case. This is
extinguished because ownership of the property will just one of the newest case in usufruct. There are three issues
be passed on to his heir. So, the heirs has to respect the here. Although Moralidad has no idea on what he is
usufruct. entering to, the SC put meaning into the document that she
executed. The SC interpreted it as a title constituting the
But the death of usufructuary will extinguish the usufruct and applied all the provisions of usufruct,
usufruct, UNLESS the contrary intention clearly appears. If declaring that it is terminated because of the fulfilment of
it is stated in the title constituting the usufruct that despite the resolutory condition as expressly provided in the title
the death of the usufructuary, the usufruct will continue by constituting the usufruct.
his heirs, then the exception applies.
By merger of the usufruct and ownership in the same
In case of multiple usufruct, which is not
person
simultaneous but successive, the death of the first
usufructuary will not extinguished the usufruct. It will
This is very simple. The situation here is where a
passed on to the next.
father donates naked ownership to his son but reserves to
himself the usufruct. When he dies, his son will inherit the
usufruct. His son, as a naked owner, is merged to that of
usufructuary.
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 Rescission – failure to comply with the conditions

By renunciation of the usufructuary of the agreement
 Mutual withdrawal – if both agrees, then that’s
This is the waiver of the usufructuary. Only the okay
usufructuary who can renounce because he is the one with  Attainment of age of majority extinguishes
more rights. Because usufruct is a right. The renunciation parental usufruct
does not need the consent of the owner. He can unilaterally
and arbitrarily renounce his rights. However, the usufruct is not extinguished by misuse of the
thing subject of the usufruct, unless by the virtue of the
Can the naked owner renounce usufruct? No. He cannot say misuse, the thing has been totally lost. The usufruct is not
na “Ang kapal ng mukha mo. You are using my property extinguished by the fulfilment of a suspensive condition for
and yet you’re not respecting me. I will terminate the the reason that the usufruct never came into existence.
usufruct.”
Art. 604. If the thing given in usufruct should be lost only
According to Paras, if the renunciation is made maliciously in part, the right shall continue on the remaining part.
and in fraud of creditors, the said creditors can rescind the (514)
renunciation to the extent of their credit.
It’s only the total loss of the thing that would extinguished
By the total loss of the thing in usufruct the usufruct.
If the thing is totally lost, what is left to be subject Art. 605. Usufruct cannot be constituted in favor of a
of the usufruct? Wala na. Let’s say, if the usufruct is over town, corporation, or association for more than fifty
the car and it was carnap, without the fault of the naked years. If it has been constituted, and before the expiration
owner or of the usufructuary, then the usufruct is of such period the town is abandoned, or the corporation
extinguished. or association is dissolved, the usufruct shall be
extinguished by reason thereof. (515a)
By the termination of the right of the person constituting
the usufruct
If you constitute a usufruct in favor of a town, pwede siya.
Maximum period is 50 years. If it has been constituted, and
What if the naked owner who believed that he is the owner
before the expiration of such period the town is
of the naked property turned out to be not the owner at
abandoned, or the corporation or association is dissolved,
all? He was only pala the possessor in good faith. When the
the usufruct shall be extinguished by reason thereof. Just
real owner filed an action against him and the owner won,
like the death of the usufructuary.
what will happen to the usufruct?
Art. 606. A usufruct granted for the time that may elapse
It will be terminated because the right of the
before a third person attains a certain age, shall subsist for
person (naked owner) constituting the usufruct was
the number of years specified, even if the third person
terminated.
should die before the period expires, unless such usufruct
has been expressly granted only in consideration of the
By prescription
existence of such person. (516)
This refers to acquisitive prescription by a stranger,
In the book of Paras, that is an exception of the rule that
either of the usufruct and the naked ownership.
the death of the usufructuary extinguishes the usufruct. Do
you agree that this is an exception?
There are other causes for the extinguishment of usufruct:
 Annulment – Can the naked owner cause the
In other words, Article 606 is a usufruct with a period.
extinguishment of the usufruct? He cannot just say
Although the period is not specifically stated in the title, the
na ayaw na niya. He has to go through a
period of the usufruct is up to such time xxx.
procedure. He can have the usufruct annulled on
the ground that it was entered fraudulently, with
Example: I will give you the usufruct of my land until your
force, violence, intimidation, without his consent,
wife reaches the age of 60. Ginawa lang ang age ng person
etc.
as the basis for the period.
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103
make use of the land and materials. But in such case, if the
So “shall subsist for the number of years specified.” Until owner should wish to construct another building, he shall
the wife reaches the age of 60. Let us say, when the have a right to occupy the land and to make use of the
usufruct was constituted, the wife was 40. So ang usufruct materials.
is for 20 years. What if she died at the age of 50? Will the
usufruct be extinguished? The owner has the right to construct a new building and he
can occupy the new building. He can make use of the
The general rule is that it is a periodic usufruct. The age is materials of the old building but he has to pay the
just a guide as to when the usufruct will end. So whether usufructuary because the usufruct is presumed to continue.
the third person is alive or dead, naka-‐fix na yung time. In
our example, even if the third person dies at 50, technically What about we talked earlier about that the usufruct is
he did not reach the age of 60, so may ten years pa. The extinguished upon the total loss of the thing? Well, under
usufruct will not be extinguished. Differentiate this ha with Article 607, there is no total loss of the building. Meron
a specific purpose in relation to the third person. (Usufruct pang mga materials na natira.
with a period vs. Usufruct for a specific person)
Presumably, the usufructuary still have usufruct over the
For me, this is an independent provision and not an building even though it is destroyed. But if the naked
exception to the ground that the death of the usufructuary owner, because he owns the land and there is no usufruct
extinguishes the usufruct. in the land, he can put up a new building. He can use the
building. But he has to pay the usufructuary the interest
Art. 607. If the usufruct is constituted on immovable upon the sum equivalent to the value of the land and of the
property of which a building forms part, and the latter materials.
should be destroyed in any manner whatsoever, the
usufructuary shall have a right to make use of the land and The second part of this article talks about a usufruct
the materials. constituted on the building only. Despite the
The same rule shall be applied if the usufruct is extinguishment of the usufruct on the building, meron pa
constituted on a building only and the same should be ring materials.
destroyed. But in such a case, if the owner should wish to
construct another building, he shall have a right to occupy Note: Atty. S. was referring to a table on her presentation.
the land and to make use of the materials, being obliged to Medyo magulo so check nalang 
pay to the usufructuary, during the continuance of the
usufruct, the interest upon the sum equivalent to the value Art. 608. If the usufructuary shares with the owner the
of the land and of the materials. (517) insurance of the tenement given in usufruct, the former
shall, in case of loss, continue in the enjoyment of the new
Article 607 talks about immovable. We have here a usufruct building, should one be constructed, or shall receive the
constituted in a parcel of land with a building. There are interest on the insurance indemnity if the owner does not
two situations here: wish to rebuild.
1. Parcel of land with a building Should the usufructuary have refused to
2. Building only contribute to the insurance, the owner insuring the
tenement alone, the latter shall receive the full amount of
What if the building was destroyed? It was hit by lightning. the insurance indemnity in case of loss, saving always the
The usufructuary shall have the right to use of the land and right granted to the usufructuary in the preceding article.
the material. (518a)
So sa land and building na usufruct, wala na yung building.

In either of the situations mentioned, the building is
It is now a pile of rocks. But there is still usufruct over the
destroyed. The building is insured. Who is entitled to the
land. You can make use of whatever materials are left. Plus
proceeds of the insurance?
the land.
According to 608, If the usufructuary shares with the
The same rule will be applied if the usufruct is constituted
owner the insurance of the tenement given in usufruct, the
only on the building and it was destroyed. There is no
former shall, in case of loss, continue in the enjoyment of
usufruct over the land but still, the usufructuary can still
the new building, should one be constructed, or shall
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104
receive the interest on the insurance indemnity if the owner

If the owner chooses the latter alternative (meaning he
does not wish to rebuild.
does not have the other property to replace the
expropriated one and he chooses to pay the legal interest),
In the first paragraph, the usufructuary shares with the
he shall give security for the payment of the interest.
owner for the premium to be paid with the insurance
company. So, that is if he contributed. He can either enjoy
CASES
usufruct over the new building if it is going to be
constructed. If not rebuilt, he can get insurance of the
LOCSIN vs. VALENZUELA: Take note that this is a situation
indemnity. He is not entitled to the 50% of the indemnity.
wherein the usufructuary xxx was a lifetime usufructuary
He is only entitled to the interest. The proceeds of the
who did not possess the property. She just enjoyed the
insurance actually belongs to the naked owner.
fruits thereof. The property was tenanted. The tenants
would deliver her the fruits that she was entitled to. But
Should the usufructuary have refused to contribute to the
when the Operation Land Transfer took place and the
insurance (he did not contribute or help at all), the naked
tenants became the owners of the property, the payments
owner insuring the tenement alone, the latter shall receive
made by the tenants were no longer fruits as Helen, the
the full amount of the insurance indemnity in case of loss,
usufructuary, was entitled to. It is considered as
saving always the right granted to the usufructuary under
compensation to the tenants of the land. Since Helen
Article 607.
continued to receive payments from the tenants… That
was considered by the SC as a legal interest on the
So take note of the rules under Article 608.
indemnity.
It would seem that Article 609 would apply
Art. 609. Should the thing in usufruct be expropriated for
because the property subject of the usufruct was taken
public use, the owner shall be obliged either to replace it
away by the government from the landowners.
with another thing of the same value and of similar
conditions, or to pay the usufructuary the legal interest on
CHINGEN vs. ARGUELLES: So we have an estate of a person
the amount of the indemnity for the whole period of the
who dies. There is what we call the legitime and the free
usufruct. If the owner chooses the latter alternative, he
portion. The free portion is what the deceased can give to
shall give security for the payment of the interest. (519)
any person he wants.
The recipients are called the legatees or the
What if the thing subject to usufruct is expropriated for
devisees. In this case, they were the legatees who reserved
public use? Article 609 provides that the owner:
the jewelries. The husband got the legitime. He is the heir
1. Shall be obliged either to replace it with another
of the 50% portion of the wife.
thing of the same value and of similar conditions;
Article 837 of the Civil Code provides: If the
OR
testator should have neither legitimate ascendants
2. To pay the usufructuary the legal interest on the
or descendants, the surviving spouse shall be
amount of the indemnity for the whole period of
entitled to one half of the estate also in usufruct.
the usufruct.
What is the contention of the husband here? The
Even if it is not the fault of the naked owner, he has to husband is saying that the 50% is really his and the other
replace the property that was expropriated. What if the 50%, he has usufruct. He invoked Article 837. What did the
naked owner has no other property to replace what was SC say?
expropriated? He is obliged to pay the usufructuary the Actually Article 837 should be amended because of
legal interest on the amount of the indemnity for the whole the word “ also.” Based on this article, when the wife died,
period of the usufruct. the husband became the usufructuary. But also because he
is an heir, the usufruct which was created upon the death
was automatically extinguished. Sabi ng husband dito, that
What is the indemnity? The just compensation that is paid
doesn’t make sense.
to the naked owner for the property. Diba in exchange of
The SC said no. The usufruct created by virtue of
the property, the naked owner gets a payment. So the
Article 837 when the wife died was also extinguished upon
usufruct presumably continues over that money. So the
her death. It’s like it never existed.
usufructuary is entitled to the legal interest.
August 11, 2014
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105
We are going to finish our discussion on usufruct. Just few

 The right to remove the improvements. He is not
more provisions.
entitled to reimbursement so remove or set them
off against the damage caused.
Art. 610. A usufruct is not extinguished by bad use of the
thing in usufruct; but if the abuse should cause
What are the rights and obligations of the naked owner?
considerable injury to the owner, the latter may demand
that the thing be delivered to him, binding himself to pay  He must cancel the security or the mortage.
annually to the usufructuary the net proceeds of the same,  The security must be returned to the usufructuary
after deducting the expenses and the compensation which until the latter complies with his obligations.
may be allowed him for its administration. (520)  With respect to rural leases, the naked owner must
respect the lease until the end of the agricultural
According to 610, a usufruct is not extinguished by bad use year.
of the thing in usufruct. Even if the usufructuary abuses the  Make reimbursement to the usufructuary in proper
car which is the subject of the usufruct, it is not a ground cases.
for extinguishment. However, but if the abuse should
cause considerable injury to the owner, he may demand Title VIII -‐ NUISANCE
that the thing be delivered to him. So kunin niya nalang
from the usufructuary. Nuisance is under Book II. Some authors are saying that
nuisance is a modification of ownership. Why? Because if
The condition is he must bind himself to pay annually to your property is considered as a nuisance, you can be
the usufructuary the net proceeds of the same, after deprived of such property. You can be deprived of its
deducting the expenses and the compensation which may enjoyment and event ownership.
be allowed him for its administration.
What is a nuisance? Read Article 694.
The naked owner has to give to the usufructuary what the Art. 694. A nuisance is any act, omission, establishment,
latter is entitled to receive. The right to the fruits will business, condition of property, or anything else which:
remain to the usufructuary. Only the right to use or to enjoy (1) Injures or endangers the health or safety of
the usufruct is removed. others; or
(2) Annoys or offends the senses; or
Art. 611. A usufruct constituted in favor of several persons (3) Shocks, defies or disregards decency or
living at the time of its constitution shall not be morality; or
extinguished until death of the last survivor. (521) (4) Obstructs or interferes with the free passage
of any public highway or street, or any body of water; or
We have multiple usufruct here which is successive.
(5) Hinders or impairs the use of property.
Art. 612. Upon the termination of the usufruct, the thing in
These are considered as nuisance:
usufruct shall be delivered to the owner, without prejudice
1. Injures or endangers the health or safety of others
to the right of retention pertaining to the usufructuary or
his heirs for taxes and extraordinary expenses which  A house in danger of falling (yung mga old
should be reimbursed. After the delivery has been made, houses na malapit ng magiba and malapit lang
the security or mortgage shall be cancelled. (522a) sa streets); fireworks or explosives factory
2. Annoys or offends the senses
What happens upon the termination of the usufruct?  Too much horn blowing; karaoke; like in a
According to Article 612: party tapos maingay masyado sa village; a
pumping station with a high chimney; abbatoir
 The usufructuary has the obligation to return the
property to the naked owner. (or slaughter house)
3. Shocks, defies or disregards decency or morality
 He has the right to retain the property unless he is
paid for the taxes and extraordinary expenses  What is indecent here in the Philippines? Do
made (insofar as the value of the property has you see posters here of naked men? What was
improved) immoral 20 years ago may not be immoral
today.
 This depends on the time, place and the
standard of morality of countries and people.
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106
In the Netherlands, they have this area where

A private nuisance is one that is not
there are naked women dancing in the
included in the foregoing definition.
window. It’s very ordinary for them but it’s not
So if it is not public, then it is
very ordinary here in the Philippines. To display
private.
these things is still not accepted in our
country.
However, if you read the cases on nuisance, the Supreme
4. Obstructs or interferes with the free passage of
Court does not use this classification. The SC tends to go to
any public highway or street, or any body of water
the old classification of a nuisance:
 Marami yan dito especially in JP Laurel. Can
1. Nuisance per se – always a nuisance at all times
you even see the sidewalk where people can
and in all circumstances
pass or walk? Wala na because it’s full of illegal
2. Nuisance per accidens – nuisance only because its
vendors. Maraming sidewalk vendors. Also in
location or attendant circumstances
San Pedro street.
5. Hinders or impairs the use of property How about an abbatoir? Is it a nuisance per se or a nuisance
 Somebody who squats on the land of another per accidens? Nuisance per accidens. So, there are really
is considered a nuisance because he will hinder many nuisance per accidens because if you put them in a far
or impair your enjoyment of your property by away place, they will not irritate or annoy people.
being on your land, building and planting.
But what about those illegal vendors? Wherever you put
Those are the kinds of nuisance. them, they are still considered nuisance. As long as they are
Note: For more examples, refer to the book of Paras  illegal, nuisance per se.
Art. 695. Nuisance is either public or private. A public There’s another kind of nuisance that has been discussed in
nuisance affects a community or neighborhood or any different cases – Attractive nuisance.
considerable number of persons, although the extent of It is a dangerous instrumentality or appliance
the annoyance, danger or damage upon individuals may be which likely to attract children at play.
unequal. A private nuisance is one that is not included in
the foregoing definition. Attractive Nuisance Doctrine: one who maintains on his
estate or premises an attractive nuisance without
Under Article 695, there are two kinds of nuisance: exercising due care to prevent children from playing
1. Public nuisance therewith or resorting thereto, is liable to a child of tender
A public nuisance affects a community or years who is injured thereby, even if the child is technically
neighborhood or any considerable a trespasser in the premises.
number of persons, although the extent
of the annoyance, danger or damage upon Take note that this only applies to children. It does not
individuals may be unequal. apply to an adult. An adult cannot say na nahurt siya kasi
Examples: Illegal vendors on the may attractive nuisance and na-‐attract siya kaya ganun.
sidewalk. It does not only affect
one person but a community. The case that is always discussed in relation to attractive
Although not everyone really nuisance is the Hidalgo case.
passes there pero those who go
there are affected. CASE
Also the abbatoir. It affects all of
those houses in the vicinity. HIDALGO ENTERPRISES, INC. vs. BALANDAN: The
Maybe in Phase 3, the houses reasoning of the Balandan spouses is that one who
there get a more tangent odor. maintains, creates and constructs a nuisance is liable for
Kami malayo kami. Unequal any damage caused by the nuisance.
effects but still it affects a In this case, they were alleging that the tanks of
community or a considerable water can be considered as an attractive nuisance because
number of persons. it attracts children. But the SC said no. It is merely an
2. Private nuisance imitation of the work of the nature. If you go around, you
will see bodies of water. So if you jump in the river, the
same thing will happen to you.
algene c.
107
Hence, if small children are drowned in an

You have to relate this Article 1143, par. 2: an action to
attractive water tank of another, the owner is not liable
abate a public or private nuisance is not extinguished by
even if there be no guards on the premises.
prescription.
What can be considered as an attractive nuisance then? A
It will never prescribe. Hindi pwede sabihin ng nuisance
gun. Example, you placed a riffle or a machine gun in your
owner na they have already been operating for 50 years
table. Somebody saw the gun and plays with it tapos the
and naka-‐acquire na sila ng nuisance. Well, that is not
child is hurt because he was playing with it, thinking that it
allowed.
is a toy, then the owner of the gun will be liable for the
death of the child because he maintains an attractive
What is the remedy if there is a nuisance?
nuisance.
Art. 699. The remedies against a public nuisance are:
What is the basis for the liability? The attractiveness is an
(1) A prosecution under the Penal Code or any
invitation to children. Safeguards to prevent danger must
local ordinance: or
therefore be set up.
(2) A civil action; or
(3) Abatement, without judicial proceedings.
If some stupid idiot plays with the gun thinking that it’s his
fault, then that is his fault. Kung adult ha. Iba yung sa
children. If public nuisance, the remedies are (three options):
1. File a criminal action
This is what we are talking about (referring to Article 696). -‐ There are certain crimes under the
RPC or maybe an ordinance
Art. 696. Every successive owner or possessor of property 2. Civil action
who fails or refuses to abate a nuisance in that property -‐ File a civil case for damages for the
started by a former owner or possessor is liable therefor person who creates or maintains the
in the same manner as the one who created it. nuisance
3. Extra-‐judicial abatement
Who can be liable for nuisance? One who: -‐ You don’t have to go to court. You
 Creates have to abate the nuisance going
through a certain process.
 Participates
 Adopts
Remedies 1 and 2 (filing of criminal or civil actions) may be
 Continues existing nuisance
brought by any individual if the nuisance is especially
 Refuses to abate nuisance
injurious to himself.
Art. 697. The abatement of a nuisance does not preclude Art. 700. The district health officer shall take care that one
the right of any person injured to recover damages for its or all of the remedies against a public nuisance are availed
past existence.
of.
Illustration: There is a factory that emits all those
According to the author, in Manila, the person responsible
obnoxious odor that causes respiratory problems. This is the City Engineer. But never mind, I don’t think anybody
factory has been filed and it had no choice but to close
will ask this.
down the factory. Many people were already sick because
10 years gud ang operation.
Art. 701. If a civil action is brought by reason of the
maintenance of a public nuisance, such action shall be
Can the factory owner say that it is no longer liable for
commenced by the city or municipal mayor.
anything because the factory was already closed? No. That
is not an excuse. He will be liable for damages caused by its
Criminal actions – go to the prosecutor, file the complaint,
past existence.
etc.
Art. 698. Lapse of time cannot legalize any nuisance,
When we talk about civil action/s against a person
whether public or private.
maintaining a nuisance, it must be the mayor who shall
bring the action. Well, that is according to Article 702.
algene c.
108
7. The value of the thing abated does not exceed

Art. 702. The district health officer shall determine P3,000 (the most important)
whether or not abatement, without judicial proceedings, is If you want a factory to close down, you
the best remedy against a public nuisance. cannot go through this. Of course, the
value of the property is more than 3,000.
If you want to extra-‐judicially abate the nuisance, ask the
suggestion of the district health officer. Art. 705. The remedies against a private nuisance are:
(1) A civil action; or
Art. 703. A private person may file an action on account of (2) Abatement, without judicial proceedings.
a public nuisance, if it is specially injurious to himself.
For private nuisance, there’s no criminal action available.
Any action, civil or criminal, if he himself is being injured by You can:
nuisance. 1. File a civil action
2. Extra-‐judicially abate the nuisance
What is the procedure for extra-‐judicial abatement? Refer
to Article 704. Art. 706. Any person injured by a private nuisance may
abate it by removing, or if necessary, by destroying the
Art. 704. Any private person may abate a public nuisance thing which constitutes the nuisance, without committing
which is specially injurious to him by removing, or if a breach of the peace or doing unnecessary injury.
necessary, by destroying the thing which constitutes the However, it is indispensable that the procedure for
same, without committing a breach of the peace, or doing extrajudicial abatement of a public nuisance by a private
unnecessary injury. But it is necessary: person be followed.
(1) That demand be first made upon the owner or
possessor of the property to abate the nuisance; So, private or public, the same. Except that for public, there
(2) That such demand has been rejected; is a criminal action.
(3) That the abatement be approved by the
district health officer and executed with the assistance of Art. 707. A private person or a public official extrajudicially
the local police; and abating a nuisance shall be liable for damages:
(4) That the value of the destruction does not (1) If he causes unnecessary injury; or
exceed three thousand pesos. (2) If an alleged nuisance is later declared by the
courts to be not a real nuisance.
How can it be done?
1. Remove it We’re done with the provisions on nuisance. Let’s go to the
2. If necessary, destroy the thing cases.
without committing a breach of the peace, or doing
unnecessary injury. August 12, 2014
What are the requisites for abatement of nuisance without CASES

judicial proceedings?
1. There must be showing that the nuisance is TAMIN vs. CA: Anything that is constructed on the property
specially injurious to the person seeking of public dominion… Under this case, we have Art. 694. A
abatement nuisance is any act, omission, establishment, business,
2. Demand is made upon the owner or possessor of condition of property or anything else which: xxx xxx xxx
the property to abate the nuisance (5) Hinders or impairs the use of property.
3. The demand has been rejected or ignored Was the contract entered into by the mayor with
4. The abatement must be approved by the district the two leases valid? No. It is beyond the commerce of
health officer man.
5. The abatement must be executed with the The SC said that: A public plaza is outside the
assistance of the police commerce of man and constructions thereon can be
6. The abatement must be done in such a way that it abated summarily by the municipality. This is just an obiter.
does not breach the public peace, or do What the SC said is that the municipality was
unnecessary injury correct in filing a civil action for the recovery of the land
algene c.
109
occupied by xxx and xxx because this is allowed under the

Nuisance is not merely an establishment, it could be an act
Civil Code. Filing a civil action is one of the ways to abate
or omission. So that act can be abated.
public nuisance.
ILOILO COLD STORAGE vs. MUNICIPAL COUNCIL: Take note
BENGZON vs. PROVINCE OF PANGASINAN: Sometimes, it is
that the power to abate is different from the power to
impractical to ask the court to remove whatever that is
declare an establishment, an act or an omission as a
considered as nuisance. It actually involves number one:
nuisance.
Injures or endangers the health or safety of others and
When you file an action for abatement of nuisance,
number two: annoys or offends the senses.
the court must first determine whether or not that thing is
In this case, what they did, instead of filing an
a nuisance. The nuisance must be already declared by the
action for abatement, was to file a civil action for damages.
court to be a nuisance. It is not for the municipal xxx to
So since may nuisance na daw, they will just transfer to
determine whether an act, omission or establishment is a
another place after the payment of damages.
nuisance.
Passing an ordinance to summarily abate a
AYALA vs. BARRETTO: We are talking of nuisance per
nuisance, okay fine. As long as it is already declared as a
accidens here which is the karaoke parlor with open air. If
nuisance. Distinguish between the action of abatement and
its place in a private subdivision, then it can be abated as a
the declaration as to whether or not it is a nuisance.
nuisance – being something that annoys or offends the
senses.
ESPIRITU vs. MUNICIPAL COUNCIL: Again, the same issue
Once a subdivision is open, it happened in Ortigas,
with the case of Tamin where structures were built on
wherein it is converted to commercial and no longer
property of public dominion. In Tamin, it was because of a
residential… At first, they were able to prevent the
lease contract. In Espiritu, it is because of the war.
establishments were popping up. But after the
The SC said that whatever the reason is, whether it
constructions, the SC said that the government has already
is a legal contract or of the government or by war, the
xxx the area. If you, the resident, just want to remain in this
nuisance can be abated because it is on the public
kind of situation while the others are going, then ikaw na
dominion.
bahala. You have to know that the place is developing na.
There is absolutely no question that the town plaza
That’s why if you look around Greenhills now, even if it’s a
cannot be used for the construction of market stalls,
subdivision, there are already many establishments.
specially of residences, and that such structures constitute
So the suggestion of the SC is to move to a more
a nuisance subject to abatement according to law. Town
backward part of the town if you want peace and quiet. If
Plazas are properties of public dominion, to be devoted to
you are living in the middle of the city, you have to adjust.
public use and to be made available to the public in general.
Basically, that’s the doctrine in this case. This is very old but
They are outside the commerce of man and cannot be
up to now, because of development and progress, actions
disposed of or even leased by the municipality to private
to abate nuisance per accidens do not usually proper to
parties.
converted areas (commercial areas).
August 13, 2014
RAMCAR vs. MILLAR: When you are issued a business
permit to operate this kind of business in a particular area,
CANLAS vs. AQUINO: An action can be filed to prevent a
the entity that issues the permit will look at the zoning.
possible nuisance. If you look at the provision, we have
What kind of establishments are allowed?
remedies available… But prevention, as already established
In this case, Ramcar has a permit for garage but
by the SC, may also be resorted if it is already clear that
what was operated was different. So yung mga residents,
whatever is going to be built will be considered a nuisance.
baka makaamoy sila sa baho. It may injure or endager the
Of course, the rice mill is not a nuisance per se or a
health and safety of others or annoys or offends the
public nuisance. It is just a nuisance per accidens because of
senses. That is what businesses do. They try to apply for a
the location, being next to a hospital.
particular type of business and they add another or
something that is not approved.
SAN RAFAEL HOMEOWNERS vs. CITY OF MANILA: If you
Whether or not there is a nuisance also depends on
compare this case with Canlas… In Canlas, the SC allowed
the approved permit given by the authority. If not, then it
the prevention of such alleged nuisance (the ricemill).
can be abated. Again, abatement does not mean
In this case, the SC said na let’s find out first. We
destroying the building itself but stopping the action.
cannot say that it’s a nuisance if it doesn’t really cause this
algene c.
110
and that. If it will injure or endanger the health or safety

of
algene c.
111
others, annoy, etc., then allow the prevention case to be

filed. If not, then wala.
CITY OF CEBU vs. JUDGE GAKO: This case is quite simple.
So, there is no hard and fast rule with regard to
We already discussed this yesterday. It is up to the court to
abatement of nuisance. Do you really need to wait for the
declare something a nuisance. What is a nuisance? It is
nuisance to be seen first or can you prevent it? It really
provided for under Article 694. Unless something is
depends.
declared by the court as nuisance, it cannot be abated.
Once there is a declaration that it is a nuisance, then
LUCENA GRAND CENTRA TERMINAL vs. JAC LINER:
abatement can be made by a city council (passing of
Nowadays, the local government units try to centralized
ordinance), extra-‐judicial abatement and other ways.
the picking up and delivering of passengers in one
But why was summary abatement allowed in this
centralized bus station. We have one there in Ecoland.
case? Because of the admission by Feliciano that he is
Before, there were different terminals. Each bus company
obstructing the road. In other words, gi-‐admit na niya na
has its own terminal. But because of the ordinance, these
whatever they have on the road interferes the passage of
terminals of the individual bus companies were no longer
any public highway. We will learn in evidence, there are
allowed to be used. They were only authorized to use the
things which may be admitted. Once admitted, they are
centralized bus stations.
estopped from complaining. So they cannot say here na
The issue here is WON the bus terminals of the
ang court lang ang magdeclare sa property as a nuisance.
individual bus companies can be summarily abated in the
Because of the admission, then abatement can be
sense that… can the city council just pass an ordinance and
made. It can either be done by the city council (ordinance)
stop the bus companies from using their own terminal?
or through the procedure that we have under Article 704.
The SC said no. First of all, the city council can only
abate a nuisance if it is declared as such by the Supreme
SOIRANO vs. LAGUARDIA: This case is more related to
Court. The bus terminals were not yet ruled to be nuisance
freedom of expression and other provisions of the Bill of
by the SC. Besides, are they really, in truth and in fact,
Rights.
nuisance? Will these bus terminals cause traffic? Is the going
There is also a discussion here regarding nuisance.
in and out of the buses from the terminals cause traffic?
As those remarks made by Brother Eddie obscene? Do they
The SC said no. Sabi ng SC what causes traffic is the bus na
shock, disregard or defy decency or morality? The SC said
magstop on the streets outside the terminal but not the
that perhaps they don’t if those words are uttered in a
busses that go inside the terminal.
party or gambling hall… But the words were uttered in a
Bus terminals per se do not, however, impede or
national television tapos under General Patronage pa. It is a
help impede the flow of traffic. How the outright
religious program.
proscription against the existence of all terminals, apart
The SC here cited American jurisprudence where it
from that franchised to petitioner, can be considered as
is stated there that nuisance may be a right thing in a
reasonably necessary to solve the traffic problem.
wrong place. Like a pig on the parlor. Diba?
The SC said that: Neither are terminals public
Do we need to wait for the court to say what was
nuisances as petitioner argues. For their operation is a
uttered by Brother Soriano shocks, defies or disregards
legitimate business which, by itself, cannot be said to be
decency or morality before it can be put off the air? The SC
injurious to the rights of property, health, or comfort of the
said no because it is not in the right place. Siguro kung nasa
community.
X-‐rated program to, then maybe pwede.
But even assuming that terminals are nuisances
The SC said that you don’t have to find the words
due to their alleged indirect effects upon the flow of traffic,
that are uttered as obscene as long as it uttered on a
at most they are nuisance per accidens, not per se.
General Patronage program. So prior restraint is allowed in
This has been repeated by the SC: Unless a thing is
relation to Constitution.
nuisance per se, however, it may not be abated via an
ordinance, without judicial proceedings, as was done in the
RP vs. MIJARES: Take note that these provisions that we
case at bar.
are taking up are not the only provisions available in
There is an implication that a nuisance per se can
situations like this.
be summarily abated but how summary abatement is
If under Rep. Act No. 7279, demolition and eviction
done, the SC does not explain. Because gain, this is the old
are allowed when individuals have been identified as
classification. Under our Civil Code, we only have the
professional squatters and squatting syndicates or when
procedure to abate public or private nuisance. But for the
they occupy danger areas and other public places.
abatement of nuisance per se and nuisance per accidens…
So even if you find nuisance on a building,
Iba and there are no rules provided.
algene c.
112
abatement is not the only solution. We also have

other
algene c.
113
provisions on the Civil Code and special laws that govern on

so proven in a hearing conducted for that purpose. It is not
such.
per se a nuisance warranting its summary abatement
Summary eviction is allowed on these special laws
without judicial intervention.
so there is no need for a court declaration. A court
declaration is only required if you go through abatement of
I think, the best way to do is that if you are a lawyer, do not
nuisance. If your abatement is based on another law and
raise nuisance nalang. Look for another law that can be
that law does not require a court declaration, the SC said
applied. This will not be addressed directly as we have seen
go.
in the cases.
August 14, 2014
Title VIII -‐ LEASE
TELMO vs. BUSTAMANTE: The problem with these cases,
CASES
even though it is a 2009 case, the SC keeps on coming back
to the nuisance per se and nuisance per accidens
CUENCO vs. TTSC: Normally, when one enters into a
classification. The SC keeps on repeating that if it is a
contract of lease, the lessee is required to give a deposit.
nuisance per se, then it can be summarily abated but there
The deposit, generally speaking, cannot be applied to the
is no procedure provided under the law.
rentals. That’s not allowed. The deposit is supposed to
The SC said here na avail of number 3 under Article
answer on the damages caused on the leased premises and
669 which is to abate without judicial proceeding. Concrete
other bills (electricity, etc.) Upon the expiration of the
poles, can they be considered nuisance per se? No. It is not
lease, the deposit will have to be returned to the lessee
a nuisance at all times and at all circumstances. It becomes
interest-‐free.
a nuisance because it is blocking the road in this case. It is
In this case, we have a situation wherein after the
only a nuisance per accidens.
expiration of the lease contract, the lessee continued to
occupy the unit. Under 1670, that is called an implied lease.
GANCAYCO vs. GOVERNMENT: The SC did not address the
There is a continuation of the lease. If the lease is one year
allegation that it is a public nuisance. The SC said: The fact
and you pay monthly, then it is implied that the extension is
that in 1966 the City Council gave Justice Gancayco an
monthly if there is no demand from the owner to vacate.
exemption from constructing an arcade is an indication that
What’s the case that’s normally file? Unlawful detainer.
the wing walls of the building are not nuisances per se.
Unlawful detainer requires the demand to vacate. If no
So, a nuisance may be nuisance per se or per
demand, then there is automatic extension of the lease.
accidents. Nakalimutan na yung Civil Code.
A nuisance may be per se or per accidens. A
Art. 1670. If at the end of the contract the lessee should
nuisance per se is that which affects the immediate safety
continue enjoying the thing leased for fifteen days with
of persons and property and may summarily be abated
the acquiescence of the lessor, and unless a notice to the
under the undefined law of necessity.
contrary by either party has previously been given, it is
understood that there is an implied new lease, not for the
This is what is frustrating. We are here studying the law and
period of the original contract, but for the time
then our legal luminaries are saying etc. The classification
established in Articles 1682 and 1687. The other terms of
used by the SC is vague.
the original contract shall be revived. (1566a)
PEREZ vs. SPOUSES MADRONA: This is a 2012 case – we
have again the undefined law of necessity. Only nuisance LOPEZ vs. UMALE-‐COSME: Can Cosme file an action for
per se may be summarily abated. unlawful detainer against Lopez despite not having a lease
The SC here is saying that you can only avail of contract? Remember the argument of Lopez, she said that
abatement if there is a nuisance per se. What is that? the contract between her and Cosme, being oral, has no
Something that is injurious to the health and comfort of the period. Is she correct?
community. Even if there is no written lease contract, there is
That tenet applies to a nuisance per se, or one still a period under the law. Article 1687 gives us the period.
which affects the immediate safety of persons and Let’s say you pay monthly and you pay it every 30 th, every
property and may be summarily abated under the 30th of the month, your lease contract expires. If you are
undefined law of necessity. By its nature, it cannot be said allowed to stay there on the next month, there is an
to be injurious to rights of property, of health or of comfort implied extension of the lease. If on the first of the month,
of the community. If it be a nuisance per accidens it may be the lessor will give the demand to vacate, that means that
algene c.
114
he is already applying the termination of the lease contract

before the 30th of the before.
So it is a wrong notion to think that unlawful
detainer cannot be filed when there is no written lease
contract. We have Article 1687 of the Civil Code.
Art. 1687. If the period for the lease has not been fixed, it is
understood to be from year to year, if the rent agreed
upon is annual; from month to month, if it is monthly;
from week to week, if the rent is weekly; and from day to
day, if the rent is to be paid daily. However, even though a
monthly rent is paid, and no period for the lease has been
set, the courts may fix a longer term for the lease after the
lessee has occupied the premises for over one year. If the
rent is weekly, the courts may likewise determine a longer
period after the lessee has been in possession for over six
months. In case of daily rent, the courts may also fix a
longer period after the lessee has stayed in the place for
over one month. (1581a)
YUKI vs. CO: One thing you have to remember about lease
contracts, just like any contracts, is that the contract is the
law between the parties. One cannot insist on having a
right if it is not there in the contract. Just because one is
the lessee doesn’t mean that he has already the right of
first refusal.
Another thing about lease contract is that it has to
be respected even if the leased premises are sold to a third
person. Here, Co purchased the premises and he respected “Happiness is the consequence of personal effort.
the lease of Yuki. It was only upon the expiration of the You fight for it, strive for it, insist upon it,
lease period, Co made a move to eject Yuki. So that is a and sometimes even travel around the world looking for it.
standard. Kunbaga, in every lease contract, if the You have to participate relentlessly in
termination is “this date”, then that has to be respected the manifestations of your own blessings.
not only by the parties to the lease but also by the third And once you have achieved a state of happiness,
persons who enter into a contract involving the leased you must never become lax about maintaining it.
premises. You must make a mighty effort to keep swimming upward
This also holds true of the lease premises is into that happiness forever, to stay afloat on top of it.”
foreclosed. Let’s say the leased premises is a warehouse — Elizabeth Gilbert, Eat, Pray, Love
leased by Y. The owner X, mortgaged the property to
secure a loan from the bank. If X does not pay his loan and
its interests, the bank can foreclose the property used as a
collateral. What if the leased contract is 20 years? The bank
cannot do anything about it. It has to respect the lease
contract until its termination.
NOTE: Unedited Transcript. So please bear with the typo

and grammatical errors 
algene c.
115
August 14, 2014

Why is it an encumbrance? It is a limitation on the right of
the owner to use the property. A, instead of fully enjoying
Let’s now go to the coverage of our third exam. This is my
the land to his own, will have to share the enjoyment of B.
favorite topic in property.
What is the enjoyment here? The right to use. B can now
use the part of A’s property so it is an encumbrance – a
Title VII. -‐ EASEMENTS OR SERVITUDES
limitation on the right to enjoy.
Art. 613. An easement or servitude is an encumbrance
Now, let’s talk about the properties here.
imposed upon an immovable for the benefit of another
 Dominant estate: B (one who is benefited by the
immovable belonging to a different owner.
encumbrance)
The immovable in favor of which the easement is
established is called the dominant estate; that which is  Servient eastate: A (encumbered or burdened
subject thereto, the servient estate. (530) estate)
What is real easement? It is provided by under Article 613. Who are the owners?
An easement or servitude is an encumbrance  Dominant owner is B
imposed upon an immovable for the benefit of another  Servient owner is A
immovable belonging to a different owner.
Article 613 talks about a real easement. Again, easement or
If you are reading this for the first time, will you understand servitude is an encumbrance imposed upon an immovable
this definition? The definition is very abstract. for the benefit of another immovable belonging to a
different owner.
The immovable in favor of which the easement is
established is called the dominant estate; that which is Let’s distinguish easements and servitudes. When you look
subject thereto, the servient estate. at the provisions, sometimes they use “easements” and
sometimes “servitudes.”
Let me just tell you that when you talk about easements,  As used in the Civil Code, easement is equivalent to
we are talking about tangible immovables like land. We are servitude. The term easement is better known in
not talking about quotas or machineries placed in the the Philippines.
building.  Easement is the term used in common law
countries, like the United States. Servitude is the
Let me illustrate so you can understand. The most common term used in civil countries.
easement is easement of right of way. Despite being a civil law country
(Philippines), the popular term here is
easements.
PROPERTY OF B  Under common law, easement is only one form of
servitude. So servitude is a broader term.
 Easement is always real (in favor of another).
WAY Servitude refers to both real and personal
PROPERTY OF A
(Easement) easements.
ROAD That’s why if you look at Article 613,
“easement or servitude” is used. Because
Let’s say we have A and B. B has no access to the road and when we talk about easement, we only
so A said “Okay B. I will give you an easement of right of talk about a real easement. If you look at
way through my property. So you can go from your Article 613, it used “servitudes.” Servitude
property to and from the road.” An easement or servitude is broader.
is an encumbrance imposed upon an immovable (land of A)
for the benefit of another immovable (land of B) belonging What is a personal easement? This is the provision under
to a different owner. So, the immovables here have two Article 614.
owners – A and B. This (refers to the right of way on the
property of A) is the encumbrance. Art. 614. Servitudes may also be established for the benefit
of a community, or of one or more persons to whom the
encumbered estate does not belong. (531)
algene c.
116
Can only refer to immovable May involve real or personal

Let us say, this is the road and we have here the estate of X
property
– Hacienda X. Behind the hacienda, we have a school and
the barangay hall. Here, across the road, we have a little
There are distinctions here between a personal easement and
town. X now allocated a portion of his property for the
usufruct.
people going to the school or the barangay hall. This is an
example of a personal easement – for the benefit of the
Personal Easement Usufruct
community or of one or more persons to whom the
Cannot be alienated Generally, the right to
encumbered estate does not belong.
(If you are given the right to usufruct can be alienated
pass through the road
SCHOOL BRGY. HALL
because you are the
barangay captain and a
teacher in the school, can
WAY you sell that right to
HACIENDA X another? No.)
(Easement)
The use is specifically The use has a broader scope
ROAD
designated and in general,
(Pwede sabihin ni X (owner comprehends all the
How many estates do we have if the easement is personal?
of the Hacienda) na “You possible uses
Only one – the servient estate (Hacienda X) which is
can pass through my (Normally, when X says “I
burdened or encumbered.
property but one meter give you the right to
only. Only through this path. usufruct over this property”
A personal easement doesn’t have a dominant estate. The
You cannot go beyond then you can use it, its fruits
easement here is for the benefit, not of another
that.” That is specified.) and etc.)
immovable, but for a community.
Let’s use easements in our discussions ha, not servitudes. CASE

Let’s not be academic, okay? 
BORBAJO vs. HIDDEN VIEW: Road lots are not allowed to
Generally speaking, an easement is an encumbrance be alienated if there is a subdivision plan. Why, under the
imposed upon an immovable, for the benefit of either a law, is she a co-‐owner of the road lot? What principle or set
community or one or more persons (personal easement) up can you apply to this?
OR another immovable belonging to a different owner Here, we have a subdivision wherein the individual
(real easement). lots are owned by the individual owners while the common
areas are owned in common by all the owners of the lots
Let’s look at the distinctions between lease and easement. just like a condominium. Therefore, Borbajo, doesn’t have
any proof xxx. Under the law, Borbajo as a co-‐owner of the
Easement Lease road lots can use the road lots for the purpose for which
Always a real right Real right only when these roads were intended which is to pass through.
(The one who has the right registered or when the lease Can the Home Owners, of which he is a member,
to the easement has a real of the property exceeds one block her from passing through? No because she is a co-‐
right; it doesn’t matter if the year owner. Now, sabi niya she is entitled to an easement of
easement is real or right of way. The SC said na “anong easement of right of
personal.) way ang sinasabi mo?” Borbajo doesn’t need an easement
There is a rightful and There is a rightful and of right of way.
limited use without limited use in the possession According to the SC, you only need an easement of
ownership or possession without ownership right of way if the servient estate is owned by A and the
(Those who are passing dominant estate is owned by B (Borbajo). Since she is a co-‐
through the right of way do owner of the road lots, then there is no point in talking of
not possess the right of an easement of right of way. Borbajo, as a co-‐owner, has
way, they just use it. The the right to use the road for the purpose for which it is
right is narrower – use only.) intended. Therefore, the residents of Hidden View cannot
block Borbajo from using the road lots.
algene c.
117
This is an illustration of the definition that “the

2. Discontinuous – used at intervals and depends
immovable that is benefited (dominant estate) must belong
upon the acts of man
to a different owner”. If we have two estates and there is
What is considered as discontinuous?
only one owner, there is no need for an easement.
 An easement of right of way. Not
by express provision of the law
What are the characteristics of an easement?
but by jurisprudence. The SC, in
1. It is a real right
unanimous, considers it as
2. It is imposable only on another one’s property
discontinuous.
(the doctrine here is in the Borbajo case –
there must be two different owners)
Classification according to whether or not their existence is
3. It is a limitation or encumbrance on the
indicated:
servient estate for the benefit of another
3. Apparent – those made known and continually
Art. 615. Easements may be continuous or discontinuous,
kept in view by the external signs that reveal the
apparent or nonapparent.
use and enjoyment of the same
Continuous easements are those the use of which
 There is a sign that the easement
is or may be incessant, without the intervention of any act
is there. In the easement of
of man.
drainage, can you see the pipe
Discontinuous easements are those which are
that goes through the property of
used at intervals and depend upon the acts of man.
your neighbor? No. But you know
Apparent easements are those which are made
that it is there. That is connected
known and are continually kept in view by external signs
to your wall – that is the external
that reveal the use and enjoyment of the same.
sign of the existence of an
Nonapparent easements are those which show no
easement. So the drainage under
external indication of their existence. (532)
the ground is still considered
apparent
Let’s go to the classifications of easement.
According to Paras, the sign need not be
seen. So, you do not need to see the sign
Classifications according to the manner they are exercised:
but it must be susceptible of being seen.
Kahit na nakatago but susceptible of being
1. Continuous – unceasing, incessant or without any
seen, then it is apparent.
interruption
 Another example is easement of
But according to Paras, it doesn’t have to
aqueduct. By express provision of
be incessant. It is enough that it may be
law, it is considered as apparent
incessant.
and continuous. Whether or not it
 The most common example here
can be seen; whether or not there
is an easement of drainage. Diba
is a sign.
from your lababo, there is that
tubo where the water passes
4. Non-‐apparent – those that show no external
through that tubo under the
indication of their existence
property of another. The question
 An example is an easement of not
is: Is there always water passing
building more than a certain
there? The answer is no but it is
height. There is no sign of their
considered as continuous.
existence. Like in subdivisions,
 Another example is easement of
may mga restrictions yan. In our
aqueduct. By express provision of
subdivision, the maximum is 9
law, it is considered as apparent
meters. Is there an indication of
and continuous.
that limitation when you look
 Easement of light and view is also
around? Of course not unless you
another example of a continuous
look at the document where the
easement.
limitation is stated.
algene c.
118
August 18, 2014
algene c.
119
We have a parcel of land here. This is the easement of right

Aside from being continuous, discontinuous, apparent and of way. Now, the easement is part of the estate. Easements
non-‐apparent, easements may also be classified as positive cannot be sold, mortgaged or alienated independent of the
or negative. immovable to which they are attached. If B sells this (refers
to the right of way), he is not selling the easement but a
Art. 616. Easements are also positive or negative. portion of his property. He cannot tell A that “A, I will give
A positive easement is one which imposes upon this easement to you.” He has to sell the property itself.
the owner of the servient estate the obligation of allowing
something to be done or of doing it himself, and a If he sells it, B will no longer own that part (refers to right
negative easement, that which prohibits the owner of the of way). Si A na ang owner. B no longer has any rights of an
servient estate from doing something which he could owner.
lawfully do if the easement did not exist. (533)
Illustration after the sale:
Classification according to the purpose of the easement of
the nature of the limitation:
PROPERTY OF A
1. Positive – one which imposes upon the owner of
the servient estate the obligation of allowing
something to be done or of doing it himself PROPERTY
PROPERTY OF B
2. Negative – that which prohibits the owner of the OF A
servient estate from doing something which he ROAD
could lawfully do if the easement did not exist
Let’s say A sells the property (previously owned by B) to C.
Another classification is: C now becomes the dominant owner. What if the title in
1. Easement appurtenant – easements with the name of C does not contain an easement of right of
dominant estate way for his favor? Is this easement considered
2. Easements in gross -‐ without the dominant estate, extinguished? The answer is no.
they are purely personal easement
What if B sells the property to D and the title in the name of
Classification according to the source or origin: D does not contain any annotation that there is an
1. Voluntary easement. What is the effect? The easement is
2. Legal extinguished. Meaning there is no easement in favor of B’s
3. Mixed estate if it is not annotated at the back of the title of D. But
take note ha na we are talking about voluntary easements
We will go to these later. here. You will see the difference later.
Art. 617. Easements are inseparable from the estate to Exception here is: Unless the grantee (D) knows the
which they actively or passively belong. (534) existence of the unregistered easement. If there is proof
that D knows about it… like B tells him na “By the way,
If you have an estate, the easement is part of the estate. If there is a portion of the lot there, 1 meter lane, which I
the right of way is not part of an estate, then it is not granted A an easement of right of way.” Verbal lang to,
easement. It is not an easement if it is independent from hindi nakaannotate but it is already enough.
the immovable to which they are attached.
So if B sells the entire property to D, the easement is
What are the consequences of inseparability? included.
PROPERTY OF B RIGHT OF RULES:

(Servient Estate) WAY  Sale of dominant estate without annotation –
easement is not extinguished
ROAD  Sale of servient estate without annotation –
easement is extinguished
algene c.
120
 Sale of servient estate without annotation but

buyer knows of the existence of the unregistered
CASES
easement – easement is not extinguished
SOLID MANILA vs. BIO HONG: When a parcel of land is
Art. 618. Easements are indivisible. If the servient estate is
burdened by an easement, does the easement need to be
divided between two or more persons, the easement is
sold as well? If it is already in the title of the servient estate,
not modified, and each of them must bear it on the part
just like in this case… The previous owner, who granted the
which corresponds to him.
easement to Solid Manila and other people, annotated the
If it is the dominant estate that is divided between
existence of the easement granted. So when Bio Hong
two or more persons, each of them may use the easement
bought the property, even though it is not stated in the
in its entirety, without changing the place of its use, or
Deed of Sale that the easement will not be there, the
making it more burdensome in any other way. (535)
easement will be there pa rin. So Bio Hong is bound to
respect the easement, especially that it is annotated.
Easements are indivisible. What are the rules when the
This is a case where the SC illustrates the
servient estate is divided between two or more persons?
inseparability of an easement from the estate to which it
The easement is not modified, and each of them must bear
belongs.
it on the part which corresponds to him.
From the FT of the case: Servitudes are merely
accessories to the tenements of which they form part.
If B sells a part of his property to X, then both B and X are
Although they are possessed of a separate juridical
the servient owners of the easement on their estates.
existence, as mere accessories, they cannot, however, be
Illustration if the servient estate is divided through sale to
alienated from the tenement, or mortgaged separately. The
another person:
fact, however, that the alley in question, as an easement, is
inseparable from the main lot is no argument to defeat the
Solid Manila’s claims, because as an easement precisely, it
PROPERTY OF A
operates as a limitation on the title of the owner of the
servient estate, specifically his right to use (jus utendi).
PROPERTY RIGHT
PROPERTY
OF X (New OF LIWAG vs. HAPPY GLEN LOOP: Can a subdivision lot owned
OF B
Owner) WAY by a person contain an easement?
ROAD Here, the lot is privately owned but the water
facility is constructed there. It has been there for 30 years
If it is the dominant estate that is divided between two or or more. So the original owners of the lot sold it to another
more persons, each of them may use the easement in its person (Liwag). When he bought the lot, maybe he knew or
entirety, without changing the place of its use, or making it maybe he did not know about it. When he died, the wife
more burdensome in any other way. wanted to remove the water facility. According to her, as
the owner of the lot, she has the right to enjoy it fully and
From the provisions that we have seen, let us look at the the water facility is an impediment on her right.
characteristics of an easement: But the SC said that there is a limitation on one’s
1. It is a real right (as I discussed from the very right to enjoy the property because of the easement there
beginning) (water facility).
2. It is imposable only on another’s property (Borbajo
vs. Hiddenview) Art. 619. Easements are established either by law or by the
3. It is a limitation or encumbrance on the servient will of the owners. The former are called legal and the
estate for another’s benefit – it could be for a latter voluntary easements. (536)
community or for a person or persons
4. It is intransmissible – you cannot transfer just an
How are easements established?
easement only; you must transfer the property
1. By law – legal easements
itself
2. By the will of the owners – voluntary easements
5. It is indivisible – see Article 618
6. It is inseparable from the estate to which it
If B, the owner of the lot, says to A “A wala kang daanan
belongs – see Article 617
diyan. Meron siguro sa likod but it will lead you to a very
7. It is perpetual
dirty place which will cause inconvenience. So I will grant
algene c.
121
you the right of way so you can have an access to the main
road.” This is a voluntary easement.
What is the period for prescription for acquisition of an
easement? 10 years. There is no good faith or bad faith for
How do you compare that with a legal easement? Under
easements. You don’t even need a just title. What is
Article 619, there is legal easement when there is no other
important is that the easement is continuous and apparent.
available road na pwede daanan ni A. The most convenient
and less prejudicial way is through the property of B. Even if
UNISOURCE vs. CHUNG: You really have to know how the
B does not want to give an easement of right of way to A,
easement is established – if by law or by the will of the
he has no choice. Wala na siyang magawa. A is entitled to a
owners. Perhaps all the requisites of the legal easements
legal easement of right of way.
are present… but how is the easement established? There
is proof that the easement was voluntary because it was
Take note, there are no judicial easements. The Court
annotated on the title from Sandico all the way to
cannot say that “an easement must be here.” When the
Unisource. An easement of right of way was annotated
Court says that there is an easement, it is not creating one.
there. So it was voluntary even if all the requisites of a legal
It merely declares an easement created by law (legal
easement are present.
easement) or created by the parties (voluntary easement).
Just because there is another outlet to the
highway, does it mean that the easement is extinguished?
Art. 620. Continuous and apparent easements are acquired
No. It doesn’t matter even if there are 100 other roads to
either by virtue of a title or by prescription of ten years.
the highway. If it’s a voluntary easement, then it’s there.
(537a)
Necessity is not important for voluntary easements. It is the
will of the one who established the easement.
Why is it important to know whether or not an easement is
According to the SC, it is not the only one who
continuous or apparent? Because Article 620 says that
established the easement who is bound by the easement.
“continuous and apparent easements are acquired either
His successors-‐in-‐interest are also bound.
by virtue of a title or by prescription of ten years.” So we
Let us say ito si Sandico sold the property to X. He
have:
will tell X that there is an easement of right of way and it is
1. By virtue of a title
annotated on the title. So X can either buy the property and
2. By prescription of ten years
respect the easement OR refuse to buy the property
because of the easement. If he buys the property, he has to
CASES
accept the easement. He cannot remove it.
LIWAG vs. HAPPY GLEN LOOP: In this case, the SC said
Art. 621. In order to acquire by prescription the easements
“Contrary to Liwag’s contention that the existence of the
referred to in the preceding article, the time of possession
water tank on Lot 11, Block 5 is merely tolerated (Sabi kasi ni
shall be computed thus: in positive easements, from the
wife na the existence of the water facility was merely
day on which the owner of the dominant estate, or the
tolerated by her husband), we find that the easement of
person who may have made use of the easement,
water facility has been voluntarily established either by
commenced to exercise it upon the servient estate; and in
Marcelo, the Subdivision owner and developer; or by F.G.R.
negative easements, from the day on which the owner of
Sales, his predecessor-‐in-‐interest and the original developer of
the dominant estate forbade, by an
the Subdivision.”
instrument
For more than 30 years, the facility was
acknowledged before a notary public, the owner of the
continuously used as the residents’ sole source of water. So
servient estate, from executing an act which would be
there is a voluntary easement established by the developer
lawful without the easement. (538a)
or Marcelo himself. It’s not a legal easement. It was
established by the will of the owner – the developer. Again, you acquire easement through prescription in 10
How was the easement acquired by the users? years but only if continuous and apparent.
Both. Title – the voluntary establishment of the easement.
However, it was said here that “It is therefore clear that an By express provision of the law, under Article 621, it says
easement of water facility has already been acquired that “In order to acquire by prescription the easements
through prescription” because this is continuous and under Article 620 (prescription for 10 years), the time of
apparent. 30 years na siya dun. It was also acquired by the possession shall be computed.” So how?
residents through prescription.  If the easement is positive: from the day on which
the owner of the dominant estate, or the person
algene c.
122
who may have made use of the easement,

the provision relating to negative
commenced to exercise it upon the servient estate
easement ha.
You count from the day the dominant
 In 2008, 11 years after 1997, can B
owner starts to exercise the easement.
block the light and view? Again,
Example: A and B are neighbors. There is a
yes. There is no notarial
fence between their two estates and it is
prohibition.
called a party wall. A put a window to the
 An example of notarial
party wall. May window na where he can
prohibition is A can go to B and
peak into the property of B. He opened it
give him a document or
in 2000.
instrument wherein he states that
 Can B close the window? Yes. He
he is prohibiting B from
can, from 2000 to 2010. He has 10
obstructing the view and light
years to close the window or to
from the window of his house
compel/demand A to close the
kasi gusto niya yung ienjoy. It
window.
must be signed by A and
 What if the window remained
notarized by Atty. X.
open and it is now 2011? Can B
 Let us say A made the notarial
close the window? No. A has
prohibition in 1997 and the
already acquired the easement of
construction of B’s fence was
view by prescription of 10 years
made in 2004, then still pwede pa.
counted from the time the
Remember, wala pang 10 years.
window was opened.
You have to count from 1997
 Who is burdened? The servient
(when A built his house with a
estate – B. Because of the fact
window).
that A can peek into the property
 From the date of notarial
of B.
prohibition in 1997, B has 10 years
 If the easement is negative: from the day on which
pa. Between 1997-‐2007, he can
the owner of the dominant estate forbade, by an
still block. But in 2008, if it still
instrument acknowledged before a notary public,
looks the same (refers to the
the owner of the servient estate, from executing
view), B can no longer obstruct.
an act which would be lawful without the
What do you mean by obstruct?
easement.
We will discuss this later when we
Under Article 616, a negative easement is
reach Article 673.
that which prohibits the owner of the
servient estate from doing something
Is an easement of light and view positive or negative? It’s
which he could lawfully do if the easement
negative just like our example. If it is made on one’s own
did not exist.
wall and the wall does not extend over the neighbor’s land,
Example: We have here a house with
meaning it is just within his property, then it is a negative
windows overlooking a nice pond and
easement. Meaning, A is just trying prevent B from
garden. May nice view and the window is
obstructing his light and view.
facing the morning sun. A, in 1997,
constructed his house so that he can enjoy
Let’s go to an example for positive (*draws on the board).
the morning sun and the view of the
Dun sa San Pedro Street, buildings are dikit-‐dikit and iba-‐iba
property (garden and pond) which
ang height. Let’s say may roof top in one building (lower
belongs to B. Now, he enjoys the light and
building) and A opened the window (higher building).
view.
Positive or negative? Is there anything to block? B can close
 Can B obstructs the light and view
the window or compel A to close it within the 10 year
of A in 2008? Can he build a high
prescriptive period. So it’s positive.
wall na matabunan na ang
window? Yes, he can. Provided A
Building
has not made a notarial
prohibition prohibiting B from
making the obstruction. Look at
algene c.
123
A Building B
RONQULLO vs. ROCO: Recited in class but not discussed by
Atty. S.
From the FT of the case: The opinion of the majority
must prevail, and it is held that under the present law,
If this house is near the boundary wall and there’s a particularly, the provisions of the Civil Code, old and new,
window here, B can compel A to close the window. Alam unless and until the same is changed or clarified, the
niyo yan diba? Pag-‐firewall, boundary, bawal ang window. easement of right of way may not be acquired through
prescription.
CASE
Anyway, there are many cases under easements noh and
LAUREANA CID vs. IRENE JAVIER: For negative easements, I’m happy to say that the Supreme Court was consistent in
it must be notarial prohibition. It cannot be a verbal ruling with regard to easement of right of way. An
prohibition for the 10-‐year prescriptive period to start to easement of right of way, according to the SC, is
run. discontinuous. So maraming cases which if we will discuss,
we will only be repeating the principle so just remember
To understand the entire thing, let’s go to Article 622. this.
Art. 622. Continuous nonapparent easements, and BOGO-‐MEDELLIN MILLING vs. CA: In this case, the SC
discontinuous ones, whether apparent or not, may be established that just like an easement of right of way, an
acquired only by virtue of a title. (539) easement of railroad tracks is considered as discontinuous.
In this case, there were two arguments – that X
In other words, only continuous and apparent easements acquired the easement of the road through prescription for
may be acquired by prescription. The rest, title na. Why? 10 years and that X acquired ownership of Lot 594 through
What are the requisites for prescription in relation to prescription. The first argument was already ruled as
possession? Diba the possession must be in the concept of unmeritorious. How about the second argument? The
an owner, public, peaceful and uninterrupted. possession of X was not in the concept of an owner.
Remember, to acquire ownership of property through
If it is discontinuous and apparent, it is not uninterrupted. If prescription, there must be OCEAN possession and
it is continuous and non-‐apparent, it is not public. If it is occupation.
discontinuous and non-‐apparent, lalo na hindi continuous How then can easement be acquired by X? By
and non-‐apparent. virtue of a title. How does one acquire an easement by title?
a. By law
What about the easement of aqueduct? An easement of b. By testamentary succession
aqueduct, sometimes you cannot see because it’s under the c. By contract
ground. Sometimes, there is also no water flowing but by The SC mentioned here that if the parties
express provision of the law, Article 646, it is considered subsequently entered into a contractual right of way with
continuous and apparent. Therefore, it could be acquired the heirs of Valdez, for the continuous use of the land…
through prescription. Under the principles of voluntary easement, that is
tantamount to acquiring the easement by virtue of a title or
Why can negative easements be acquired by prescription if X filed a case against the heirs for conferment of a legal
despite the fact that they cannot be seen? According to the easement of right of way under Article 649, then title over
Supreme Court, it is not the fact that A enjoys the light and the use of the land is deemed to exist. What is the title
view that will make him acquire the easement of light and here? Law (established by law).
view after 10 years but it is the notarial prohibition – the BUT none of the above options to acquire title
notice to the whole world: “B do not block my light and over the easement of railroad right of way was pursued by
view. – signed by A and notarized by Atty. X” that makes it X. They just alleged prescription of the easement of right of
apparent. way over the strip of land occupied by the railroad. He
could havean easement by virtue of a title but in this case,
August 19, 2014 there was none.
From the FT of the case: In this case, the presence
CASES of railroad tracks for the passage of petitioner’s trains
denotes the existence of an apparent but discontinuous
algene c.
124
easement of right of way. And under Article 622 of the Civil

Like a road for the passage of vehicles or persons, an
Code, discontinuous easements, whether apparent or not,
easement of right of way of railroad tracks is discontinuous
may be acquired only by title. Unfortunately, petitioner
because the right is exercised only if and when a train
Bomedco (X) never acquired any title over the use of the
operated by a person passes over another's property. In
railroad right of way whether by law, donation,
other words, the very exercise of the servitude depends
testamentary succession or contract. Its use of the right of
upon the act or intervention of man which is the very
way, however long, never resulted in its acquisition of the
essence of discontinuous easements.
easement because, under Article 622, the discontinuous
The presence of more or less permanent railroad
easement of a railroad right of way can only be acquired by
tracks does not, in any way, convert the nature of an
title and not by prescription.
easement of right of way to one that is continuous. It is not
the presence of apparent signs or physical indications
FE VELASCO vs. CUSI: If your title is free and there is no lien
showing the existence of an easement, but rather the
or encumbrance, then you hold it freely. Meaning, there is
manner of exercise thereof, that categorizes such
no encumbrance except those noted in the certificate and
easement into continuous or discontinuous. The presence
subject to the following encumbrances already existing
of physical or visual signs only classifies an easement into
when the title was issued.
apparent or non-‐apparent. Thus, a road (which reveals a
If indeed this can be considered as an easement of
right of way) and a window (which evidences a right to
right of way, how was it acquired? The easement of way
light and view) are apparent easements, while an easement
was acquired by virtue of a title established by law – Act.
of not building beyond a certain height is non-‐apparent.
No. 496. What is the title? The law. An OCT or TCT is not the
title that we are talking about here. Title here is an
Art. 623. The absence of a document or proof showing the
agreement, or the law, etc.
origin of an easement which cannot be acquired by
In this case, the easement was established by law
prescription may be cured by a deed of recognition by the
Act No. 496, which says that: “Section 39. Every person
owner of the servient estate or by a final judgment. (540a)
receiving a certificate of title in pursuance of a decree or
registration, and every subsequent purchasers of
registered land who takes a certificate of title for value in In the case of Bicol, there was an allegation that voluntary
good faith shall hold the same free of all encumbrances, will of the owner. But is that enough to prove the existence
except those noted on said certificate, and any of the of the voluntary easement? According to Art. 623, if the
following encumbrances which may be subsisting namely: easement cannot be acquired by prescription, the only way
xxx xxx xxx Third. Any public highway, way, private way, ... to acquire it is by virtue of a title – either established
or any government irrigation, canal, or lateral thereof.” voluntarily or by law (under Article 619). How do you prove
So “encumbrances already existing before the title then? By the deed of recognition of the servient owner.
was issued.” For it to be considered as an easement of way, Even if the encumbrance is not annotated on the title but
it must already exist before the title was issued. You have the servient owner executed a deed of recognition, then
to look at the dates. that’s it. Or by a final judgment of the court. So, that is
What if the title has already been issued and the article 623.
usage of the property came after the issuance of the title,
will it still be the same? No, expropriation na. Take note, Art. 624. The existence of an apparent sign of easement
even if the property was already used by the government between two estates, established or maintained by the
but the usage started after the title was issued in the name owner of both, shall be considered, should either of them
of the owner, then the government has to resort to be alienated, as a title in order that the easement may
expropriation. continue actively and passively, unless, at the time the
In this case, a portion of Fe Velasco’s property has ownership of the two estates is divided, the contrary
already been used as part of Bolton St. before his title was should be provided in the title of conveyance of either of
issued. them, or the sign aforesaid should be removed before the
execution of the deed. This provision shall also apply in
BICOL AGRO vs. TOBIAS: This is case is only a reiteration of case of the division of a thing owned in common by two or
the SC in its previous decided cases. This is also the ruling in more persons. (541a)
the case of NPC vs. Spouses Campos.
From the FT of the case: The easement of right of One of the most important provisions is Article 624. Do you
way is considered discontinuous because it is exercised only remember our illustration for negative easements (house
if a person passes or sets foot on somebody else’s land. with window/balcony of one estate facing the sunlight and
algene c.
125
the beautiful view of the other estate)? So, that is what we

 2nd exception: The sign aforesaid should be
mean by “the existence of an apparent sign of easement –
removed before the execution of the deed
light and view.”
-‐ Example: The window was closed or
the garden was removed before X
General rule: The existence of an apparent sign of
alienated the properties to A and B.
easement between two estates, established or maintained
by the owner of both, shall be considered, should either of
Article 624 is applicable in:
them be alienated, as a title in order that the easement may
 Division of an estate originally owned by one
continue actively and passively.
person.
 Co-‐owned property
What does this provision mean? We have here an original
Let’s say A and B were previous co-‐owners
owner X. He owns a land and he divides his estate into two.
of the lot. There was no easement at the
He alienates the two lots – he sold lot 1 to A and lot 2 to B.
time they were co-‐owners. When they
Now, there exist an apparent sign of easement. There’s no
divided the lot, A got the land with the
easement, only an apparent sign of easement of light and
house and B got the land with the garden.
view. The house in Lot 1 enjoys the light and the view.
B has to respect the easement of light and
view. B cannot block the light and view of
LOT A LOT B A. Does this mean that B can no longer
build on his property? No. I never said
that. We will learn about this later. (Basis:
Art. 673)
August 20, 2014
When we talk about acquisition of an easement, that is

from the point of view of the dominant estate. When we
What is the effect of alienation of X (original owner) to A talk about establishment of an easement, then the servient
and B? The general rule: The existence of an apparent sign estate if it is voluntary.
of easement shall be considered as a title in order that the
easement may continue actively and passively. Tip from Atty. S: Giving me the provisions again is not enough
if you don’t relate it to the facts. Give the legal basis and
Actually, it is not a continuation. The easement starts to relate it to the specific facts in the question. The worst part
exist once the lots are divided and alienated to different of my life is the time that I’m checking. I hope you can
persons. When X owned the entire lot, there was no minimize the irritation that I feel. Normally, it improves. The
easement. There was only an apparent sign of easement. first exam is really the worst. When I ask how the easement
But the moment X divided the lot and sold it to A and B, B was acquired, do not say “because the parties entered into
has to respect the light and the view of A because it is an agreement.” That is wrong. That is factual. That came
considered as a title. No need for any notarial prohibition. from me. Okay? 
Exception: It shall not be considered a title if at the time the CASES

ownership of the two estates is divided, the contrary
should be provided in the title of conveyance of either of TANEDO vs. BERNAD: Did Tanedo acquire an easement of
them, or the sign aforesaid should be removed before the drainage? Yes, by virtue of a title. What’s the title? How was
execution of the deed. it established? By law. What is the law that established the
 1st exception: The contrary is provided in the title of easement? Article 624.
conveyance What was the apparent sign of the easement
-‐ If in the deed of A and B, it was stated between the two estates? The existence of the pipe that
that whatever light and view enjoyed connects the building to the septic tank. Does it need to be
by the occupants of the house is no seen? Not necessarily. There must be an apparent sign, it
longer available to the parties. So, doesn’t have to apparent.
meaning B can already do whatever
he wants. It was stated in the deed of GARGANTOS vs. TAN YANON: Yanon here has an easement
sale.
algene c.
126
of light and view against the property of Gargantos. It

was
algene c.
127
acquired by virtue of a title, established by law, specifically

What is an easement? It is an easement over one’s
Article 624 of the Civil Code.
property. It is already enough to fall under the exception: the
Does it mean that Gargantos is prohibited from
contrary provided in the title of conveyance of either of them.
constructing a building on his land? No. What do you mean
In this case, who was the original developer?
by blocking the view? Physical or literal blocking does not
Caruff. Who is now the owner of the lot? Legaspi Tower
fall under Article 624. There must be just a distance of 3
Condominium Association. Even if it is a successor-‐in-‐
meters from the boundary line of the lots. Gargantos can
interest of Caruff, it doesn’t matter as long as we have one
build a high building even if it blocks the sunlight as long as
original owner and the lot is subdivided. It doesn’t have to
the 3 meter distance is observed.
be purposely done the way it is illustrated here. What is
important is that the requisites are present.
ANECO REALTY vs. LANDEX: When a subdivision developer
From the FT of the case: Thus, when the subject
plans a subdivision… before anything is made on the land,
property was assigned to the National Government thru
there must be a subdivision plan (a drawing where all the
the APT, no easement arose or was voluntarily created
lots are already measured and the individual lots have their
from the transfer of ownership, considering that the
titles already in the name of the developer.)
parties, more particularly, Caruff, pledged that it was
The roads of the subdivision are classified in the
assigning, transferring, and conveying the subject property
title as road lots. These are easements – not an easement
in favor of the National Government thru the APT “free
of right of way but imposed by the owner of the subdivision
from any and all liens and encumbrances.”
itself. The owner of the subdivision has to include the roads
and streets of the subdivision. This is a limitation on the
Have you distinguished Article 624 from negative
right of ownership. Why? Because it cannot sell the road
easement? Let’s say we have a subdivision wherein we have
lots, only the individual lots. So this is already an apparent
the original owner of the subdivision (XYZ) and we have
sign of easement imposed by the owner itself for the
four lots. We have a morning sun. XYZ then sold Lots 1 -‐4 to
benefit of the lots it could sell to the individual lots.
A, B, C and D. A built a house on his land with balcony and
When “this” (refers to subdivision plan) was
windows facing the nice view and the morning sun.
abandoned, there was nothing done there. Everything was
just on the paper, walang individual lots and road lots. So
Landex did what it wanted to do. Aneco said “No. We have the Lot 1 -‐ Sold to A Lot 2 -‐ Sold to B
right to pass through the road lots because Article 624 applies. House was
It was originally owned by X, subdivided it and sold it to us. So built after
there is an apparent sign of easement – the road lots.” purchase
BUT the SC said that: The abandonment of X of the only
subdivision was done before the property was sold to Lot 3 -‐ Sold to C Lot 4 -‐ Sold to C
Aneco and Landex. Here, we have an application of the
exception. (2nd exception)
Anyway, I actually got a case wherein there was a

subdivision plan owned by a certain person A. Instead of
continuing the subdivision, he built sawmill on the  Does article 624 apply here?
property. The road lot, that was part of the subdivision No. The apparent sign of an easement
plan, was not used as a road lot but was occupied for the must exist before the lots are sold to
entire sawmill on the property. Eh nagka-‐utangutang this different persons. Like the case of
person and he had to sell the property. So the road lot had Gargantos vs. Yanon, there was already a
to be converted into an ordinary lot so that it could be sold. house there that has a view before it was
I don’t know what happened here, maybe may subdivision sold. One lot with a house was purchased
plan lang, no titles yet. In any case, it’s just for your by A and the other lot by B.
information. In this case, even if there was only
one owner and the lots were sold to
PRIVITIZATION vs. LEGASPI TOWERS: The compromise different persons… the lots were sold as
agreement entered into when they swapped the two lots lots. It was A who built the house. This is
xxx contains a provision wherein the government or ATP an example of a negative easement. If he
will reserve the lot from all liens and encumbrances.
algene c.
128
wants B not to block his light and view

deck’s limited area. Second, the weight of the office
then he has to make a notarial prohibition.
structure increased the strain on the condominium’s
foundation and on the roof deck’s common limited area,
Do not be petty about this ha. There are some subdivisions
making the easement more burdensome and adding
na may houses na, some naman wala pa. What if there was
unnecessary safety risk to all the condominium unit owners.
a house facing the morning sun and the adjacent lot is wala
Lastly, the construction of the said office structure clearly
pang house? Article 624 does not apply ha. When it comes
went beyond the intendment of the easement since it
to that, there was no intention. For subdivision developers,
illegally altered the approved condominium project plan
there was really no intention for an easement of light and
and violated Section 4 of the condominium’s Declaration of
view to be given in one house because it is already
Restrictions.
constructed.
With that, let us go to the rights and obligations of the
August 26, 2014
servient and dominant owners. I already arranged them.
Let us just go to them one by one.
Let’s go to Articles 625 and 626.
Art. 627. The owner of the dominant estate may make, at his own
Art. 625. Upon the establishment of an easement, all the expense, on the servient state any works necessary for the use
rights necessary for its use are considered granted. (542) and preservation of the servitude, but without altering it or
rendering it more burdensome.
Art. 626. The owner of the dominant estate cannot use the For this purpose he shall notify the owner of the servient estate,
and shall choose the most convenient time andso as to cause the
easement except for the benefit of the immovable
least inconvenience
manner to the owner of the servient estate. (543a)
originally contemplated. Neither can he exercise the
easement in any other manner than that previously
established. (n)
Art. 628. Should there be several dominant estates, the
This is a prohibition or a limitation to one’s right. Who’s owners of all of them shall be obliged to contribute to the
right? The owner of the dominant estate. In connection to expenses referred to in the preceding article, in
that, let us look at the case of Goldcrest. proportion to the benefits which each may derive from the
work. Any one who does not wish to contribute may
CASE exempt himself by renouncing the easement for the
benefit of the others.
GOLDCREST vs. CYPRESS GARDENS: What is the easement If the owner of the servient estate should make
here that was for the benefit of an estate owned by use of the easement in any manner whatsoever, he shall
another owner? Normally, in condominiums, the rooftops also be obliged to contribute to the expenses in the
are used for the sampayan which is a common area. All of proportion stated, saving an agreement to the contrary.
the condominium unit owners are allowed to go up to the (544)
roof deck.
In this case, the roof deck is owned by Goldcrest. Art. 629. The owner of the servient estate cannot impair,
The common areas owned by Cypress can be used by in any manner whatsoever, the use of the servitude.
Goldcrest and the other condo owners. Basically, the Nevertheless, if by reason of the place originally
purpose is to use the thing in common but not to build an assigned, or of the manner established for the use of the
office or a structure. easement, the same should become very inconvenient to
Whatever Goldcrest did in this case was not a the owner of the servient estate, or should prevent him
necessary use of the common areas. Second, what did it from making any important works, repairs or
do? It used the easement in any other manner than that improvements thereon, it may be changed at his expense,
what was previously established. Under Article 627, it made provided he offers another place or manner equally
the easement more burdensome. convenient and in such a way that no injury is caused
From the FT of the case: Here, a careful scrutiny of thereby to the owner of the dominant estate or to those
Goldcrest’s acts shows that it breached a number of the who may have a right to the use of the easement. (545)
aforementioned restrictions. First, it is obvious that the
construction and the lease of the office structure were Art. 630. The owner of the servient estate retains the
neither necessary for the use or preservation of the roof ownership of the portion on which the easement is
algene c.
129
established, and may use the same in such a manner as not may obligation for the
to affect the exercise of the easement. (n) expenses. Okay? An
exception is when there is
DOMINANT OWNER an agreement to the
– the ones benefited by the easement contrary.)
RIGHTS OBLIGATIONS Article 629 – He cannot
Article 627 – What can he Article 627 – He cannot impair, in any manner
make? Works necessary for alter the easement. whatsoever, the use of the
the use and preservation, (This was violated by easement.
not improvements for Goldcrest. It even blocked Article 629 – He can change Article 629 – But if he does
something else. the stairwell of the roof the location of the so, he must offer another
deck.) easement if the easement place or manner equally
Article 627 – He must not should become very convenient and in such a
render it more burdensome. inconvenient to him. (This is way that no injury is caused
Article 627 – He must notify his prerogative.) thereby to the owner of the
the servient owner if he …By reason of the place dominant estate or to those
wants to make necessary originally assigned or the who may have a right to use
works for use and manner established for the the easement.
preservation. use of the easement, or if
Article 627 – He must the easement should
choose the most convenient prevent him from making
time and manner as to any important works,
cause the least repairs and improvements
inconvenience to the thereon.
servient owner. Article 630 – He retains Article 630 – He must not
Article 628 – He may Article 628 – Should there ownership of the portion on affect the exercise of the
exempt himself from be several dominant which the easement is easement.
contribution to the estates, all the dominant established.
expenses by renouncing the owners shall contribute to
easement in favor of the the expenses in proportion Those are the rights and obligations of the servient and
other dominant owners. of the benefits they receive. dominant owners. Let’s go to another case.
(Because the obligation to
maintain the easement CASE
belongs to the one using it –
dominant owners.) VALDERAMA vs. NORTH NEGROS: How was the easement
SERVIENT OWNER established in this case? By the voluntary will of the owners
-‐ one who is burdened by the easement – Valderama et. al. (different land owners). How was the
RIGHTS OBLIGATIONS easement acquired by the Sugar Central? By virtue of a title
Article 628 – He can make Article 628 – But he must which is the contract wherein the easement of the right of
use of the easement in any contribute to the expenses way was established to the different hacienda owners.
manner whatsoever. in proportion to the benefits When was the easement deemed to have started
(For the purpose that it was he received, unless there is as easement? What did the SC say here?
intended). an agreement to the When the parties established the easement of
contrary. right of way, there was no use of the railroad tracks. It was
(In other words, if the not being used as a right of way. It was Valderama who was
servient owner uses the passing through his hacienda to the Sugar Central. The
easement, he is also easements established started becoming easements when
considered as a dominant the outside hacienda owners were allowed to pass through
owner in the sense that he to the railroad tracks to the property of Valderama et. al.
must contribute to the Sugar central did not really acquire the essence of
expenses. Hindi pwede na si the easement of right of way. It only acquired easements
dominant owner lang ang from the time others were allowed to pass through. The
algene c.
130
fact that others were allowed to pass did not really make
sells it to the dominant owner. Or he decides to sell his
the easement more burdensome. There was really no effect
entire estate to the dominant owner.
to the servient owners.
SOLID MANILA vs. BIO HONG: Who reported the case of
August 27, 2014
Solid Manila? Why isn’t there a merger as contemplated in
Article 631 there? What prompted Bio Hong to claim that
Yesterday, we looked at the rights and obligations of the
there was a merger?
servient and dominant owners. Now let’s go to
There was an incorrect application of Article 631.
extinguishments of easements. Remember, that we are still
There was really no merger here because the alley is not
discussing the general provisions. When we talk about
the dominant estate. As what we already discussed, an
Article 631, it refers to both voluntary and legal easements.
easement is indivisible from the estate of which it belongs.
If in case jurisprudence says that this does not apply to legal
So the merger contemplated under Article 631 must not be
easement or voluntary easement, then you take note of
with conditions. So I will sell you the portion of my property
that. These are the general ways of extinguishing
occupied by the easement of right of way. Period. You pay
easements:
me P100,000 for that.
Hindi pwede na I will sell this to you but you must
Art. 631. Easements are extinguished:
xxx. It must be complete and not partial. It must not be
By merger in the same person of the ownership of the dominant
conditional. It must be permanent and not temporary.
and servient estates;
From the FT of the case: Merger, as we said,
By nonuser for ten years; with respect to discontinuous
presupposes the existence of a prior servient-‐dominant
easements, this period shall be computed from the day on which
they ceased to be used; and, with respect to continuous owner relationship, and the termination of that relation
easements, from the day on which an act contrary to the same leaves the easement of no use. Unless the owner conveys
took place; the property in favor of the public –– if that is possible ––
When either or both of the estates fall into such condition that no genuine merger can take place that would terminate a
the easement cannot be used; but it shall revive if the personal easement.
subsequent condition of the estates or either of them should
again permit its use, unless when the use becomes possible, Merger must be:
sufficient time for prescription has elapsed, in accordance with 1. Unconditional
the provisions of the preceding number; 2. Complete
By the expiration of the term or the fulfillment 3. Absolute
of the condition, if the easement is 4. Permanent
conditional;
So pacto de retro sale is not permanent.
By the renunciation of the owner of the dominant estate; or
temporary
The seller-‐owner can buy back the
By the redemption agreed upon between the owners of the
property.
dominant and servient estates. (546a)
Example given by Paras: A donated his estate to B.
However, it was stipulated that if B gets married, the
ownership of the property will be reverted back to A. So
this is conditional, not absolute.
1st paragraph: By merger in the same person of the
ownership of the dominant and servient estates (MERGER) According to Paras, pending the resolutory condition, the
Did you remember the case of Solid Manila vs. Bio Hong? merger can be considered as temporary. If B marries, then
Did the SC say there that the easement was extinguished by the easement is revived. If no marriage takes place (as
reason of merger in the same ownership of the servient when X dies), the easement really is extinguished. Merger
and dominant estates? What Bio Hong was talking about in becomes permanent.
the case was not the merger referred in Article 631. When
you talk about merger, the servient owner and the 2nd paragraph: By nonuser for ten years, with respect to
dominant owner becomes one. discontinuous easements, this period shall be computed
from the day on which they ceased to be used; and, with
What can cause a merger? Maybe the owner of the servient respect to continuous easements, from the day on which
estate decides to sell the strip of land that used to be an an act contrary to the same took place (NON-‐USER FOR 10
easement of right of way to the dominant owner. So he YEARS)
algene c.
131
The second ground for extinguishment under Article 631 is

through that easement of right of way given by the servient
non-‐user for 10 years. Again, the periods differ, whether co-‐
owner because it is already a river. Then, how many meters
ownership, usufruct or possession… for easement, it’s
away, andun na yung dried up river bed (the one previously
always 10 years.
occupied by the old river). So kanino na yun? The servient
owner. Under Article 461, the owner of the property
How to acquire an easement by prescription? 10 years. How
occupied by the new river owns the old river bed. Since an
can an easement by non-‐use? 10 years.
easement is indivisible from the property to which it
belongs, that property occupied, even though it’s an
How do you count prescriptive period for easement?
easement, belongs to the servient owner.
 Discontinous easements – period shall be
computed from the day on which they ceased to
The dominant owner can no longer pass through. The river
be used
stayed there for 10 years or more. Let’s say 11 years. Then,
What’s the perfect example? An easement
he asked the servient owner, “Can you please put back the
of right of way. What is the presumption
river where it used to be?” Eh ayaw man ni servient owner.
here? The right of way was voluntarily
given. It was established by the voluntary
Now, after 11 years, is the easement extinguished?
will of the party.
As stated by Paras, even though it is a ground of
If it is no longer used, then it can
extinguishment under Article 631, it is not really a ground
be extinguished after 10 years from the
because the moment the easement can be used again, it
day on which they ceased to be used.
will be reactivated. There is no prescriptive period for
 Continuous easements – period shall be computed
impossibility of use. Kahit na 50 years.
from the day on which an act contrary to the same
took place
If the river is there for 50 years and the dominant owner
What is an example of this? An easement
cannot pass… then after 50 years, it goes back to its
of aqueduct -‐ where the water passes, it
original river bed and now the dominant owner or his heirs
could be exposed, under the ground or on
can pass (nibalik na ang easement of right of way), but
the pipe. On the day it is blocked, you can
nobody knew that the road is passable again. What
10 years. After 10 years, it would be
happens to the easement?
considered extinguished.
It cannot be extinguished. The easement will be
extinguished after 10 years from the day the easement of
According to Article 631, proof of non-‐use must be
right of way is revived. So if the river goes back to the old
indubitable or without a doubt. Hence, proof must be given
river bed in 2010, then by 2020, the easement will be
for non-‐use for the easement to be extinguished.
extinguished.
3rd paragraph: When either or both of the estates fall into
In the illustration, what is really the ground for
such condition that the easement cannot be used; but it
extinguishment of the easement in 2020? Non-‐user for 10
shall revive if the subsequent condition of the estates or
years.
either of them should again permit its use, unless when
the use becomes possible, sufficient time for prescription
Even if it’s here in Article 631, bad use or impossibility of
has elapsed, in accordance with the provisions of the
use… the provision is very clear: “but it shall revive if the
preceding number (BAD CONDITION OR IMPOSSIBILITY OF
subsequent condition of the estates or either of them
USE)
should again permit its use, unless when the use becomes
possible, sufficient time for prescription has elapsed, in
The third way of extinguishment is bad condition or
accordance with paragraph 2.”
impossibility of use. One day, the dominant owner woke up
and realized that the right of way is already a river.
Obviously, it only becomes a ground of extinguishment if
Remember Article 461? The river transferred to the right of
the impossibility is perpetual or permanent like the river
way.
stays there (on the easement of right of way) forever. If it
can be revived, paragraph 3 will not be a ground. The
So who owns the dried up river bed? The river is now
ground would be paragraph 2 – non-‐use.
occupying the right of way. So the dominant owner, one
day, woke up and realized that he could no longer pass
4th paragraph: By the expiration of the term or the
algene c.
132
fulfillment of the condition, if the easement is temporary
algene c.
133
or conditional (EXPIRATION OF THE TERM or FULFILMENT

 Expropriation of the servient estate
OF THE CONDITION)
What if the entire servient estate is
expropriated? May easement of right of
By the expiration of the term: If the easement is
way pa ba si dominant owner? Of course,
established by the voluntary will of the party (meaning the
wala na.
servient owner), he can state up to when he can allow his
 Annulment or cancellation of the title constituting
property to be used as an easement. So, this is a temporary
the easement
easement.
This is for voluntary easement.
 When the law is amended which removes the right
By the fulfilment of the condition: So this applies for
to the easement
conditional easement. An easement was agreed to last
 Abandonment of the servient estate
upon until the dominant owner passes the bar. So, once the
 The dissolution of the right of the grantee who
condition is fulfilled, the easement is extinguished.
created the easement
Just like the extinguishment of usufruct.
5th paragraph: By the renunciation of the owner of the
Let’s say A is the owner of a parcel of land
dominant estate (RENUNCIATION)
and he granted an easement of right of
way to his neighbor B. Then, C, the real
Example: The dominant owner says “Ayoko ko ng gamitin
owner, sues A. A is now ejected from the
ang easement of right of way.” So, that’s a valid
property. C is not a successor-‐in-‐interest of
renunciation. Of course, that is the right of a dominant
A. They have adverse interests. So, the
owner. Remember that easement is a real right. He can give
right of A to give a voluntary easement of
it up.
right of way was extinguished.
 Registration of the servient estate as free
For renunciation to be a ground for extinguishment, it must
Presumably, if there is no annotation on
be:
the title of servient estate, then there is
 Express
no easement. But of course, diba there are
 Clear
other ways and means of proving the
 Specific
existence of the easement.
It cannot be implied. So that it cannot be confused with
 In case of legal easement of right of way, the
non-‐use. This does not require a prescriptive period.
opening of an adequate outlet to the highway
According to our author, it can be tacit or implied as long as
there are acts which express renunciation beyond doubt.
CASES
That is a matter of proof now which can be brought to
Court.
CABACUNGAN vs. CORALES: What did Corales allege? What
was her defense? She said that “If ever there’s an easement
General rule: Renunciation must be expressed.
in your favor, that has already been extinguished by virtue
Exception: It can be implied if there are acts showing
of a merger.”
renunciation beyond doubt.
For merger to extinguish an easement (like the
easement of the drainage, the water must fall on his lot and
6th paragraph: By the redemption agreed upon between
that of the other), it must be absolute. It is not
the owners of the dominant and servient estates
extinguished if the merger is not complete. In this case, the
(VOLUNTARY REDEMPTION)
merger is not absolute. Corales was only a co-‐owner of the
other lot. He must be a full owner of the other lot for the
Like there is an agreement that the servient owner will
easement to be extinguished. If there are other co-‐owners
redeem the easement after a certain period or upon the
of the adjacent lots, then the easement will continue.
fulfilment of certain conditions.
From the FT of the case: As defendants have not
become sole owners of the servient estate, for they have
Take note that the grounds under Article 631 are not
acquired only a part interest therein, it cannot be said that
exclusive. There are other grounds that we will see later –
in this case ownership of the dominant and servient estates
from the jurisprudence and other provisions we will take
has been merged in the same person for the purposes of
up.
the article cited. Thus, commenting on the corresponding
article of the Spanish Civil Code (Art. 546), Manresa
What are the other grounds?
algene c.
134
observes that under that article the easement is

not
algene c.
135
extinguished by the acquisition of a share in property held

Art. 632. The form or manner of using the easement may
in common.
prescribe as the easement itself, and in the same way.
(547a)
TANEDO vs. BERNAD: The easement here was established
by law under Article 624. You know that when the estate is
According to Article 632, the form or manner of using
divided into two, that’s the only time that the easement
easement may also prescribe as the easement itself. This is
actually came to existence. Because the two exceptions are
easier to understand when we reach easement of light and
not present, then the easement is not extinguished.
view. Just take note of this provision.
From the FT of the case: In the instant case, no
statement abolishing or extinguishing the easement of
Art. 633. If the dominant estate belongs to several persons
drainage was mentioned in the deed of sale of Lot 7501-‐A to
in common, the use of the easement by any one of them
Eduardo Tañedo. Nor did Antonio Cardenas stop the use of
prevents prescription with respect to the others. (548)
the drain pipe and septic tank by the occupants of Lot 7501-‐
A before he sold said lot to Eduardo Tafiedo. Hence, the use
It is impossible for an easement to be extinguished by
of the septic tank is continued by operation of law.
prescription for non-‐use for 10 years if at least one
Accordingly, the spouses Romeo and Pacita Sim the new
dominant owner (one of the co-‐owners) takes advantage
owners of the servient estate (Lot 7501-‐ B), cannot impair,
of the easement.
in any manner whatsoever, the use of the servitude.
Let’s now go to LEGAL EASEMENTS. These are more

BENEDICTO vs. CA: How was the easement established?
specific provisions. We already know under Article 619 that
Voluntary will of the party.
easements are established by law or by the voluntary will of
The SC rejected Benedicto's claim that the
the parties. So we will be dealing now with those
easement had been extinguished by nonuser and by the
established by law or the legal easements. Even if there is
cessation of the necessity for a passageway.
no agreement, the law says that such easements exist.
According to the Court, non-‐necessity of an
easement is not a ground for extinguishment of a voluntary
Art. 634. Easements imposed by law have for their object
easement. It is only a ground if it is a legal easement – the
either public use or the interest of private persons. (549)
dominant owner needs it. For voluntary easement, it
doesn’t matter.
If you look at Article 634, easements imposed by law have
From the FT of the case: Indeed, when the for their object either public use or the interest of private
easement in this case was established, the parties persons.
unequivocally made provisions for its observance by all who  For public use
in the future might succeed them in dominion, and this is  For the interest of private persons
the reason the permanent character of the easement was
annotated on each and all of the transfer certificates of title Whenever a law establishes an easement, there is a
purpose for that. The law does not establish an easement
August 28, 2014 just for the heck of it. Remember the case of Velasco vs.
Cusi? In that case, an easement for right of way was
Continuation of CASES established by law. It was of course for public use.
Easements may also be established by private persons – like
SALIMBAGON vs. TAN: In this case, there was a merger an easement of right of way in favor of an estate that does
which extinguished the easement of right of way for the not have an access to the highway.
reason that the servient estate and dominant estate are no
longer owned by one person. Art. 635. All matters concerning easements established for
The SC said: “And, with the ownership of Lots B, D, public or communal use shall be governed by the special
and E now consolidated in a common owner, namely, the laws and regulations relating thereto, and, in the absence
Tans, then the easement of right of way on Lot B may be thereof, by the provisions of this Title. (550)
said to have been extinguished by operation of law.”
Easements established for public or communal use shall be
Those are the cases on extinguishment of easement. Let’s
governed by:
finish the provisions.
1. Special laws and regulations
2. Provisions of the Civil Code
algene c.
136
increase the burden. (552)

What is the primary rule with respect to easements
established for public use? Special laws and regulations Example: In Davao, we have Las Terazas which is a high
relating to that particular situation. subdivision and the Maa proper. Whenever it rains,
coconuts and other things are found in the Maa roads.
If there are no special laws, then we apply the provisions.
The lower estates, according to law, are obliged to receive
What about for private persons? Article 636. the waters which naturally and without the intervention of
man descend from the higher estates. So when it rains,
Art. 636. Easements established by law in the interest of definitely, the water goes down to the lower estate. The
private persons or for private use shall be governed by the “stones or earth which they carry with them” are included.
provisions of this Title, without prejudice to the provisions
of general or local laws and ordinances for the general The owner of the lower estate cannot construct works
welfare. which will impede this easement like a building of a dam.
These easements may be modified by agreement Neither can he construct works that can increase the
of the interested parties, whenever the law does not burden.
prohibit it or no injury is suffered by a third person. (551a)
Article 637 should be read with other special laws, as
Easements established for the interest of private persons provided by Article 634. We have:
shall be governed by:  Law of the Waters, Article 113 – A servient owner
1. The agreement of the parties provided it is not has the right to control the descent of the water.
prohibited by law nor prejudicial to 3rd persons He has to receive the waters but he can
2. Special laws and regulations make works that would regulate. Maybe
3. Provisions of the Civil Code he can direct the waters to go to the canal
para naman hindi sige nalang magbaha sa
Again, here, we are talking of legal easements for the kanyang estate. Again, regulate lang ha as
interest of private persons. They are not governed by the long as it does not block or impede the
agreements of the owners of the estates concerned but by natural flow of the water.
the provisions of the Civil Code without prejudice to local  Same article – He is entitled to compensation if he
and general laws. The law will govern. suffers loss or damage. If there is a construction on
the dominant estate (the higher estate) which
What if the law says that the easement is like this? It should caused the flow to be increased, then the servient
be this wide, etc.? Can the easement be modified? owner can ask for compensation.
Yes. Under Article 636, they may be modified by agreement He is only entitled if he suffers loss or
of the interested parties, whenever the law does not damage. So what about the basura that
prohibit and when no injuries are suffered by a third comes from the higher estate? Well, as
person. So these easements are qualified. long as nobody suffers loss or damage,
then the servient owner cannot ask for
Let’s now go to the DIFFERENT KINDS OF LEGAL compensation.
EASEMENTS.  Law of the Waters, Article 114 – The dominant
owner can construct works to prevent erosion.
The first set is legal easements relating to waters and the There is no such thing as extinguishment
most popular is Article 637 – NATURAL DRAINAGE OF of this estate on the ground of
LANDS. prescription for non-‐user of 10 years
because this is not something that is used
Art. 637. Lower estates are obliged to receive the waters which deliberately like a right of way. If there’s a
naturally and without the intervention of man descend from drought for 10 years and it rains on the 11 th
the higher estates, as well as the stones or year, andyan pa rin yan. The easement of
earth which they carry with them. drainage still exists.
The owner of the lower estate cannot construct works which (Note: At this point, na-‐confuse si Atty. S
will impede this easement; neither can the owner of the higher because the comment of Paras daw is “This
estate make works which will
algene c.
137
easement may be extinguished on the fisherman can actually park his banca within the 3 meter.
ground of non-‐user for 10 years.”) Anyone who passes in the river has the right to rest on the
It can be considered as a ground area, to fish, salvage something on the river and put
of extinguishment of easement by reason whatever is salvaged from the river, take it again, etc. If you
of destruction when the dominant owner are the owner, you cannot complain. You have to grant the
builds a dike. Again, this is impossibility of 3 meter easement.
use and not really non-‐user.
“Estates adjoining the banks of navigable or floatable rivers
RULES: are, furthermore, subject to the easement of towpath for
A. Servient owners the exclusive service of river navigation and floatage.”
1. Receive the waters which naturally descend
from the higher estates (includes stones and What is the difference between the two path and the 3
earth but not garbage) meter easement? Before you can answer that, you have to
2. Cannot construct works which will: read Article 640.
a. Impede the easement
b. Increase burden Art. 640. Compulsory easements for drawing water or for
B. Dominant Owners watering animals can be imposed only for reasons of
1. Liable for the damages or losses suffered by public use in favor of a town or village, after payment of
the servient owner the proper indemnity. (555)
2. May construct works to prevent erosion
If it is the riparian owner’s animal that needs to go to the
As a general rule under Article 637: No indemnity for the river, does he need an easement of tow path? No. That’s
servient owner. If the servient owner is always the recipient why Article 640 is saying that it can only be imposed for
of waters, stones, rocks, coconuts, he cannot do anything reasons of public use in favor of a town or village, after
about it. payment of proper indemnity.
COMMUNITY OR VILLAGE
Let’s now go to EASEMENTS ALONG RIPARIAN BANKS.
tow
Art. 638. The banks of rivers and streams, even in case they are path
of private ownership, are subject throughout their entire length +++++++++++++++++++++
and within a zone of three meters along their 3 meter
margins, to the easement of public use in the general interest RIVER
of navigation, floatage, fishing and salvage.
Estates adjoining the banks of navigable or floatable rivers are,
Definitely, the tow path is not part of the 3 meter
furthermore, subject to the easement
easement. It is for “to go to somewhere else.” That is why
of towpath for the exclusive service of river navigation and
Article 639 says: “If it be necessary for such purpose to
floatage.
If it be necessary for such purpose to occupy lands occupy lands of private ownership, the proper indemnity
of private ownership, the proper indemnity shall first be paid. shall first be paid.”
(553a)
A tow path is a path to go to the river. From where? From
the town, the village or a community, from the barangay. It
Take note that if you are a riparian owner, the law says that: is related to Article 640. Also for watering animals. But
“xxx is subject throughout their entire length and within a again, only after payment of indemnity.
zone of 3 meters along their margins, to an easement of
public use in the general interest of navigation, floatage, You have to relate that with Article 657:
fishing and salvage.” Art. 657. Easements of the right of way for the
+++++++++++++++++++++ passage of livestock known as animal path, animal
3 meter trail or any other, and those for watering places,
RIVER resting places and animal folds, shall be governed
by the ordinances and regulations relating
Entire length of 3 meters. That is what you call for the thereto, and, in the absence thereof, by the
interest of navigation, floatage, fishing and salvage. So, a usages and customs of the place.
algene c.
138
Without prejudice to rights legally

acquired, the animal path shall not exceed in any
Now, let’s go to the EASEMENT OF AQUEDUCT. This is
case the width of 75 meters, and the animal trail
what we have been talking about in the beginning. It is
that of 37 meters and 50 centimeters.
considered a continuous and apparent easement.
Whenever it is necessary to establish a
compulsory easement of the right of way or for a
Art. 642. Any person who may wish to use upon his own
watering place for animals, the provisions of this
estate any water of which he can dispose shall have the
Section and those of Articles 640 and 641 shall be
right to make it flow through the intervening estates, with
observed. In this case the width shall not exceed
the obligation to indemnify their owners, as well as the
10 meters.
owners of the lower estates upon which the waters may
filter or descend. (557)
These are the different easements that you don’t know
that actually exist. If you are an owner of a river bank and
behind you, there is s a town or a village, you have to allow A dam is different from aqueduct. A dam is to block the
the animals to pass or to rest on their way to the river. You water and to collect the water but an aqueduct is xxx.
cannot complain. You cannot say “Oh, you are trespassing
Let’s say this is the river. We have estates here – A, B, C, D,
on my property.” This is under the Civil Code and the
E, F. This is uphill. All of them have 10 hectares. C is far from
special law.
the river. There’s a drought and he wants to irrigate his
crops, so Article 642 says that: If he wishes to use upon his
NOTE: Payment of indemnity is required noh if you pass
own estate any water which he can dispose, he shall have
through (for tow path). For the 3 meter easement, no need
the right to make it flow through the intervening estates
for indemnity.
(estates of A and B) A and B cannot refuse.
Art. 639. Whenever for the diversion or taking of water
from a river or brook, or for the R
use of any other
continuous or discontinuous I F E D
stream, it should be
V
necessary to build a dam, and the person who is to construct it
is not the owner of the banks, or lands which must support it, E
he may establish the easement of R A B C
abutment of a dam, after payment of the proper indemnity.
(554)
“xxx with the obligation to indemnify their owners, as
well as the owners of the lower estates upon which the
This is for the construction of a dam. If one has to pass
waters may filter or descend.”
through in a private property in order to build the dam, he
has to pay the proper indemnity. Of course, C must indemnify A and B. Why are they entitled
to indemnity? Because of the artificial construction. They
This is an example of a legal easement for the benefit of are entitled to indemnity by express provision of law.
private persons. Any private person, who needs to build the
dam, can actually pass through the property of another but What is this legal EASEMENT OF AQUEDUCT?
he must pay the proper indemnity.
The right to make water flow thru intervening estates in
order that one may make use of said waters.
Art. 641. Easements for drawing water and for watering
animals carry with them the obligation of the owners of
Who is the dominant owner in this case? C. That is his right.
the servient estates to allow passage to persons and
His obligation is to indemnify. Under the law of the waters,
animals to the place where such easements are to be used,
to keep the aqueduct in proper use and care. Who has the
and the indemnity shall include this service. (556)
obligation to maintain the easement of aqueduct? C, the
dominant owner.
It is the obligation of the servient owner to allow passage
for the animals, etc. It says here “indemnity shall be paid if Obligations of the dominant owner:
it is in favor of a town.” This is only for public use ha. This is
1. Article 642 – To indemnify the servient owner, the
connected to Article 640. Anybody who passes through the
owners of the lower estates upon which the
property of another must pay the proper indemnity.
waters may filter or descend
algene c.
139
2. Law of the Waters, Article 130 – To keep the

cannot refuse but they can make impositions so that they
aqueduct in proper use and care
cannot be prejudiced by the easements.
3. Law of the Waters, Article 132 – To keep on hand
necessary materials for its use
CASES
Art. 643. One desiring to make use of the right granted in
GONZALES vs. PURIFICATION DE DIOS: Why is a grant from
the preceding article is obliged:
the government necessary? He wants to get water from the
(1) To prove that he can dispose of the water and
river which is property of the public dominion.
that it is sufficient for the use for which it is intended;
That is also part of Article 642 that he can also
(2) To show that the proposed right of way is the
dispose. It is not expressly provided under Article 642 that
most convenient and the least onerous to third persons;
he must get a necessary grant or permit from the
(3) To indemnify the owner of the servient estate
government. There are times when an easement of
in the manner determined by the laws and regulations.
aqueduct is not sourced from the river. Perhaps, it is
(558)
sourced from a property belonging to another. As long as
the dominant owner has the authority to use the source of
Refer to the illustration under Article 642. Before C can
the water, that is also acceptable.
actually say to A and B na he has the right to intervene with
In this case, because Gonzales wanted to get water
their estates, he must first:
from the river, then the necessary government grant must
1. Prove that he can dispose of the water and that
be presented. She must apply for that or get that first
the water is sufficient for the use for which it is
before she can start imposing to her neighbor to allow her
intended
to pass thru the property.
Remember, A and B’s estates are 10 has
each. If the xxx is only one foot pipe, then
ESTATE OF JOSE BANZON vs. MARIANO BANZON: The first
it is not enough to irrigate his estate.
one was established by? Voluntary will of the party. How
2. To show that the proposed right of way is the most
about the second one? By law (Article 550 of the Civil Code,
convenient and the least onerous to third persons
now Article 642-‐643 of the New Civil Code).
Of course, C cannot go or cut through the
Take note that Act 496 was used in this case. The
properties of A and B in the middle or at a
same provision cited in the case of Velasco vs. Cusi.
point na madamay ang houses on the
Originally, the title of the property was in the name of
estates. He should find a location which is
Banzon. Then, maybe the heirs of Jose Banzon, as
the least onerous and most convenient for
administrators, saw that there was no annotation on the
A and B.
title regarding an easement of aqueduct on the property of
3. To indemnify the owner of the servient estate in
Jose Banzon.
the manner determined by the laws and
Act 496 reads that:
regulations
SEC. 39. Every applicant receiving a certificate of
How much indemnity should be paid? It
title in pursuance of a decree of registration, and
depends on the law and regulations. In
every subsequent purchaser of registered land
this case, if there is an easement
who takes a certificate of title for value in good
established by law, the parties can agree
faith shall hold the same free of all encumbrance,
on the width and the location of the
except those noted on said certificate, and any of
indemnity AS LONG as it is not contrary to
the following encumbrances which may be
law.
subsisting:
If all the requisites under Article 642 and 643 are present… xxx Any public highway, way, private way
C has the right of an easement to aqueduct. What are established by law, or any Government irrigation
subject to negotiations between C, on one hand, and A and canal on lateral thereof, where the certificate of
B, on the other hand? title does not state that the boundaries of such
1. Width of the easement – how wide it should be highway, way, or irrigation canal or lateral thereof,
2. Whether it is an open or closed canal have been determined.
These are the things that can be agreed upon by the But if there are easements or other rights
parties. It could be imposed by the servient owners. They appurtenant to a parcel of registered land which
for any reason have failed to be registered, such
easements of right shall remain so appurtenant
algene c.
140
notwithstanding such failure, and shall be held

to
algene c.
141
pass with the land until cut off or extinguished by

blockage done by the father before he died. There was
the registration of the servient estate, or in any
nothing that stated otherwise in the contract or whatever
other manner.
document was executed by the father in favor of his
In other words, if it’s not annotated in the title,
children. So, he is entitled to the easement of aqueduct. He
then it does not exist.
doesn’t have to pay the indemnity because it is not
According to the legal provision quoted, the
required by Article 624.
registration of a servient estate under the Torrens system
extinguishes all easements to which it is subject and which
There’s few more details about easement of aqueduct.
have not been noted on the certificate of title issued in
accordance with the proper decree of registration.
Art. 644. The easement of aqueduct for private interest
. Which of the two kinds of easement is referred to
cannot be imposed on buildings, courtyards, annexes, or
by Act. 496, Section 39? Only voluntary easements. Legal
outhouses, or on orchards or gardens already existing.
easements are not included. A legal easement does not
(559)
have to be annotated in any title of an estate because it is
established by law. The law itself says that the easement
should exist. An easement of aqueduct cannot be imposed on existing
The first canal in 1919, built with the consent of buildings, courtyards, annexes or outhouses or on orchards
Jose Banzon, is a voluntary easement. Because it is not or gardens.
reflected in the title, it is deemed extinguished. What about
the second canal? According to the SC? It is not only a So if there is a house on the lot of B, then you cannot put an
voluntary easement, perhaps Jose agreed to that… At the easement of aqueduct there to cut through the house.
same time, it is a legal easement of aqueduct under Article Obviously, look for a location which is more convenient and
642 and 643. non-‐prejudicial.
All the requisites are present (1-‐3). It has been
proved that he was granted the use of 50 liters of water per RIVER
second from the Talisay River, a sufficient amount to F E D
irrigate his land; that the passage opened by him is the
most convenient and least onerous to third parties, and A B
that he is willing to indemnify the intestate estate of Jose B. C
Banzon, owner of the servient estate, as the courts may
determine.
Although he did not pay, according to the SC, he is But can Felipe build a house on top of the canal?
willing to indemnify the estate of Jose Banzon. Therefore, it Yes, under Article 645.
is a legal easement of aqueduct that is not extinguished
even though the title of the servient estate is free from any Art. 645. The easement of aqueduct does not prevent the
encumbrance. owner of the servient estate from closing or fencing it, or
from building over the aqueduct in such manner as not to
So we already saw two distinctions between voluntary and cause the latter any damage, or render necessary repairs
legal or compulsory easement. The first one was under the and cleanings impossible. (560)
case of Benedicto vs. CA. Second one is the case of Banzon.
This article says that he has the right to close or fence his
VALISNO vs. ADRIANO: What is the basis for establishment estate and build over the aqueduct provided it does not
of the easement? Article 624. This is not an easement of cause any damage to the aqueduct or render necessary
aqueduct under Articles 642 and 643. There is no indemnity repairs and cleanings impossible.
required because the easement was not established
pursuant to Articles 642 and 643. So dapat may space for the cleaning of the aqueduct. So he
The entire property here was originally owned by can build on top of the aqueduct.
their father when the canal already existed. When the
father died, the property was divided into two – one for Art. 646. For legal purposes, the easement of aqueduct
Adriano and one for Honorata. It so happened that it was shall be considered as continuous and apparent, even
Felipe’s property that was adjacent to the river. The though the flow of the water may not be continuous, or its
moment the property was divided, there already exist an use depends upon the needs of the dominant estate, or
easement of aqueduct equivalent to a title. There was no upon a schedule of alternate days or hours. (561)
algene c.
142
R O
This is the provision which says that the easement of
O F B G A
aqueduct is continuous and apparent. This is by express
A D
provision of law. It doesn’t matter whether it is a legal or a
D
voluntary easement basta it is continuous and apparent.
H A I
Art. 647. One who for the purpose of irrigating or ROAD

improving his estate, has to construct a stop lock or sluice
gate in the bed of the stream from which the water is to
Illustration: B has no access to the highway. He is
be taken, may demand that the owners of the banks
completely surrounded. Naawa si A sa kanya so he said na
permit its construction, after payment of damages,
“B, I will give you an easement of right of way through my
including those caused by the new easement to such
property so that you can go to your property. That is a
owners and to the other irrigators. (562)
voluntary easement established by the will of the parties.
Art. 648. The establishment, extent, form and conditions ROAD

of the servitudes of waters, to which this section refers, C D E
shall be governed by the special laws relating thereto
R O
insofar as no provision therefor is made in this Code. R O AD
(563a) AD
F B G
We already know this.
A
Let’s go now to legal EASEMENT OF RIGHT OF WAY. When H Right of I
we were discussing right of way earlier, it could be a legal way -‐
easement or a voluntary easement. ROAD
Art. 649. The owner, or any person who by virtue of a real Now, what if none of them (C, D, E, F, G, H, A and I) want to
right may cultivate or use any immovable, which is give B an outlet to the highway? Diba all of them have
surrounded by other immovable pertaining to other persons access to the road except B? Let’s look at the provision.
and without adequate outlet to a public highway, is entitled to Article 649.
demand a right of way through the neighboring estates, after
payment of the proper “The owner, or any person who by virtue of a real right may
indemnity.
cultivate or use any immovable xxx”
Should this easement be established in such a manner that its use
So itong si B, perhaps he is the owner of the
may be continuous for all the needs of
property or the usufructuary of the property who has the
the dominant estate, establishing a permanent passage, the
right to cultivate or use the property.
indemnity shall consist of the value of the land occupied and the
amount of the damage caused to the servient estate.
In case the right of way is limited to the necessary passage for “xxx which is surrounded by other immovable pertaining to
the cultivation of the estate surrounded by others and for the other persons and without adequate outlet to a public
gathering of its crops through the servient estate without a highway, is entitled to demand a right of way through the
permanent way, the indemnity shall consist in the payment of neighboring estates, after payment of the proper
the damage caused by such encumbrance. indemnity.”
This easement is not compulsory if the isolation of the So B can demand. It is his right under the law.
immovable is due to the proprietor’s own acts. (564a) .
“Should this easement be established in such a manner that its use may be continuous for all the needs of the dominant estate,
establishing a permanent passage, the indemnity shall consist of the value of the land occupied and the amount of the damage
caused to the servient estate.”
The servient owners are very lucky because they
ROAD get paid the value of their property plus damages. And they
retain ownership of the land.
C D E R
algene c.
143
“In case the right of way is limited to the necessary passage

COSTABELLA vs. CA: Was there a voluntary easement
for the cultivation of the estate surrounded by others and
established in this case? No. Going back to our topic before,
for the gathering of its crops through the servient estate
we learned that an easement of right of way is an example
without a permanent way, the indemnity shall consist in the
of a discontinuous easement. Hence, it cannot be acquired
payment of the damage caused by such encumbrance.”
through prescription. It doesn’t matter even if they have
So let’s say the land of B is 10 hectares so his
been using it since time immemorial. It can only be acquired
employees will pass through the property of A, I, H and G
by virtue of a title. There was no title that established the
and sometimes through the properties of C, D, E and F. Like
easement.
only if there is harvest or once in a bluemoon. The rule is :
How about legal easement? Are they entitled to a
the indemnity shall consist in the payment of the damage
compulsory or legal easement? The answer is again NO. The
caused by such encumbrance. There is no permanent
requisites are not present in this case.
passageway so pay only for the damage.
From the FT of the case:
1. It is already well-‐established that an easement of
“This easement is not compulsory if the isolation of the right of way, as is involved here, is discontinuous
immovable is due to the proprietor’s own acts.” and as such cannot be acquired by prescription.
2. Hence, when there is already an existing adequate
Who is entitled to demand a right of way? outlet from the dominant estate to a public
The owner, or any person who by virtue of a real right may highway, even if the said outlet, for one reason or
cultivate or use any immovable. another, be inconvenient, the need to open up
another servitude is entirely unjustified. For to
When is he entitled? justify the imposition of an easement or right of
He must pay proper indemnity first according to Article way, "there must be a real, not a fictitious or
649. But jurisprudence says otherwise. (?) artificial necessity for it."
Art. 650. The easement of right of way shall be established FRANCISCO vs. IAC: By his own act of constructing a wall on
at the point least prejudicial to the servient estate, and, his property, he isolated his property to the public highway.
insofar as consistent with this rule, where the distance In this case, he was not granted a right of way.
from the dominant estate to a public highway may be the Even if you say that “I am surrounded with other
shortest. (565) estates. I have no adequate outlet to the public highway.”
So? Who caused your isolation? In this case, Francisco
Articles 649 and 650 give us the requisites for an easement
caused his own isolation. He was already given his own
of right of way. outlet but he blocked it. Therefore, he is not entitled to a
compulsory easement of right of way.
What is an easement of right of way?
The easement or privilege by which one person or a September 2, 2014
particular class of persons is allowed to pass over the land
of another, usually thru one particular path or line. Continuation of CASES
What are the requisites? FLORO vs. LLENADO: What particular requisite is not
1. The estate is surrounded by the estate of others present? The isolation was due to the acts of the owner of
2. There is no adequate outlet to a public highway the dominant estate. He was not able to develop the
3. There must be payment of the proper indemnity proposed access road which was provided in the
4. It must be established at the point least prejudicial subdivision plan.
to the servient estate (not necessarily the shortest Was there a voluntary easement granted by Floro
distance) to Llenado? What proof can be shown that there was a
5. The isolation must not be due to the estate voluntary easement, if ever? What is the best proof of the
owner’s own acts existence of a voluntary easement? The contract or the
6. It is demandable only by the owner of the estate or encumbrance is annotated.
one with a legal right like a usufructuary This case illustrates the fifth requisite: The isolation
must not be due to the estate owner’s own acts. Llenado’s
CASES lot was isolated but it was because of his own inaction or
negligence.
algene c.
144
From the FT of the case: For the Llenados to be

That easement of right of way is also a legal
entitled to a compulsory servitude of right of way under the
easement, then we can apply Article 652. If it is a voluntary
Civil Code, the preconditions provided under Articles 649
easement, it depends on the will of the party. They can
and 650 thereof must be established. These preconditions
agree whether “I can give you ½ meter.” And the other will
are: (1) that the dominant estate is surrounded by other
say “Ay ayoko nga.” Well, the other party cannot do
immovables and has no adequate outlet to a public
anything kasi it’s voluntary. But in this case, since it is also a
highway (Art. 649, par. 1); (2) after payment of proper
compulsory easement, because all of the requisites are
indemnity (Art. 649, par. 1); (3) that the isolation was not
present, then Article 652 is applicable. Because the
due to acts of the proprietor of the dominant estate (Art.
structure there is obstructing the 2 meters passage road
649, last par.); and, (4) that the right of way claimed is at
going to the Espinolas’ then it should be demolished insofar
the point least prejudicial to the servient estate; and insofar
as the encroachment is concerned.
as consistent with this rule, where the distance from the
Second, should indemnity be paid by the Espinolas?
dominant estate to a public highway may be the shortest
Let’s go to the issues one by one. If it’s a legal easement, is
(Art. 650).
Espinola required to pay indemnity? Yes under Article 649.
xxx There can be no denying that the isolation of
If it is a voluntary easement, is Espinola required to pay
the Llenado Homes Subdivision is the doing of its
indemnity? It depends on the agreement. Pag-‐voluntary
owner/developer/applicant. It appears that the access road
easement, the parties will decide especially the servient
indicated in the Plan of the Emmanuel Homes Subdivision
owner.
and the Llenado Homes Subdivision for which a right of way
In our case, is Espinola required to pay indemnity?
over the Ipapo property was procured, was merely for the
Under Article 652:
sake of securing an approval of the proposed development
Whenever a piece of land acquired by sale,
plan. T
exchange or partition, is surrounded by other
estates of the vendor, exchanger, or co-‐owner, he
QUIMEN vs. CA: According to the SC, as between
shall be obliged to grant a right of way without
demolishing a store with strong materials and cutting down
indemnity.
a tree for the easement of right of way, the second one is
There is no indemnity in this case.
least prejudicial. The distance is not as important as the
From the FT of the case: The essential requisites for
prejudice it would cause to the servient owner.
an easement to be compulsory are: (1) the dominant estate
From the FT of the case: IN EASEMENT OF RIGHT OF
is surrounded by other immovables and has no adequate
WAY that easement where the way is shortest and will
outlet to a public highway; (2) proper indemnity has been
cause least prejudice shall be chosen. However, if the two
paid; (3) the isolation was not due to acts of the proprietor
circumstances do not concur in a single tenement, the way
of the dominant estate; (4) the right of way claimed is at a
where damage will be least shall be used even if not the
point least prejudicial to the servient estate; and (5) to the
shortest route. This is so because least prejudice prevails
extent consistent with the foregoing rule, where the
over shortest distance. This means that the court is not
distance from the dominant estate to a public highway may
bound to establish what is the shortest distance; a longer
be the shortest.
way may be adopted to avoid injury to the servient estate,
The small house occupying one meter of the two-‐
such as when there are constructions or walls which can be
meter wide easement obstructs the entry of private
avoided by a round about way, or to secure the interest of
respondents’ cement mixer and motor vehicle. One meter
the dominant owner, such as when the shortest distance
is insufficient for the needs of private respondents. It is
would place the way on a dangerous decline.
well-‐settled that the needs of the dominant estate
determine the width of the easement. Conformably then,
September 3, 2014
petitioner ought to demolish whatever edifice obstructs
the easement in view of the needs of private respondents’
estate.
VILLANUEVA vs. CA: As already stated, the easement of
NAPOCOR vs. MANUBAY: Why is NAPOCOR willing to pay
right of way established in favor of spouses Espinola was
only 10%? We are talking about the area under the power
both a voluntary and a compulsory easement because all of
lines.
the requisites are present.
There are two kinds of properties involved in this
Should Villanueva remove the building that is
case:
encroaching on the easement? Yes.
1. The area occupied by the tower – that is really
algene c.
145
being used. It really deprives the owner of the

use
algene c.
146
(actual and beneficial) of the property. So there is

The case of NAPOCOR vs. Manubay is cited in more recent
really no issue here. NAPOCOR is willing to pay. But
cases involving indemnity to be paid to the land owners and
you know how many kilometres are traversed by
it is the market value. The SC said nga na the towers are
the lines?
placed there permanently and look at Article 649 ha.
2. The area under the lines – According to the SC, this
“Should this easement be established in such a
area should also be paid by NAPOCOR. NAPOCOR
manner that its use may be continuous for all the
said na 10% lang yan and Manubay can still use that
needs of the dominant estate, establishing a
portion of the property. Ang na-‐occupy lang
permanent passage, the indemnity shall consist of
permanently daw is Area No. 1. Sabi nila “Why do
the value of the land occupied and the amount of
we need to pay Area No. 2? And besides, according
the damage caused to the servient estate.”
to Article 649, in temporary passage, only damages
are to be paid.”
Art. 651. The width of the easement of right of way shall be
Unfortunately, the SC said that even the areas under
that which is sufficient for the needs of the dominant
the lines are to be paid – at the market value price of the
estate, and may accordingly be changed from time to time.
property. In other words, if you have a property and
(566a)
NAPOCOR decides to place power lines and towers there,
you get paid the market value of your property without
selling your property and you still retain ownership of the We already discussed this. This is related to the Velasco vs.
land – the title itself. So how lucky noh? Cusi case and the Villanueva case.
How much was required to be paid to Manubay?
Almost P12M. CASE
Do you remember the case of Ibrahim? The one
where NAPOCOR dug for their pipes? The SC awarded to
Ibrahim the market value of the land even if the power lines ENCARNACION vs. CA: How did Encarnacion acquire the
are just under the ground. easement? Diba it is a voluntary easement (acquired by
From the FT of the case: True, an easement of a title, established by the voluntary will of the parties). Why is
right of way transmits no rights except the easement itself, it that the SC applied Article 651 if it was established by the
and respondent retains full ownership of the property. The voluntary will of the parties? Remember, Article 651 is under
acquisition of such easement is, nevertheless, not gratis. As legal easement. But why did the SC apply it in this case?
correctly observed by the CA, considering the nature and Even if it was established by the voluntary will of
the parties, it is also a compulsory easement of right of
the effect of the installation power lines, the limitations on
way because all of the requisites are present.
the use of the land for an indefinite period would deprive
From the FT of the case: Where a private property
respondent of normal use of the property. For this reason,
has no access to a public road, it has the right of easement
the latter is entitled to payment of a just compensation,
over adjacent servient estates as a matter of law.
which must be neither more nor less than the monetary
Article 651 of the Civil Code provides that "(t)he
equivalent of the land.
width of the easement of right of way shall be that which is
sufficient for the needs of the dominant estate, and may
Atty. S talks about their property in Bukidnon. They were
accordingly be changed from time to time." This is taken to
offered easement fee daw and she cited the case of
mean that under the law, it is the needs of the dominant
NAPOCOR and Manubay. But according to the contractors
property which ultimately determine the width of the
of National Grid Corporation, they have no problem paying
passage. And these needs may vary from time to time. xxx
the areas actually occupied by the towers. Ang issue lang is
To force petitioner to leave his jeepney in the highway,
with regard to the areas under the power lines. So they said
exposed to the elements and to the risk of theft simply
na they will pay but they will also expropriate. They will get
because it could not pass through the improvised pathway,
daw the title and thus, we will need to subdivide the
is sheer pigheadedness on the part of the servient estate
property. So we met halfway. They named a price and I just
and can only be counter-‐productive for all the people
accepted it. We still retain the title to the property. Instead
concerned. Petitioner should not be denied a passageway
of easement, they will just expropriate. They have the
wide enough to accommodate his jeepney since that is a
power to expropriate, diba? In expropriation, it’s very unfair
reasonable and necessary aspect of the plant nursery
because the just compensation is based on some DAR
business.
formula which is lower. For easement of right of way, it is
the market value of the property. Since the easement to be established in favor of
petitioner is of a continuous and permanent nature, the
algene c.
147
indemnity shall consist of the value of the land occupied

and the amount of the damage caused to the servient
According to Paras, in a sense, the easement is voluntary
estate pursuant to Article 649 of the Civil Code.
because it is created implicitly by the will of the parties
(there was a contract entered into – whether a sale,
Art. 652. Whenever a piece of land acquired by sale,
donation, etc.) BUT it is also compulsory because the one
exchange or partition, is surrounded by other estates of
who is enclosed has the right to an easement of right of
the vendor, exchanger, or co-‐owner, he shall be obliged to
way. The payment of indemnity (refers to compulsory
grant a right of way without indemnity.
easement) depends on who is the buyer, the seller, the
In case of a simple donation, the donor shall be
owner or the donee.
indemnified by the donee for the establishment of the
right of way. (567a)
Let’s go to an illustration:
Art. 653. In the case of the preceding article, if it is the land
of the grantor that becomes isolated, he may demand a
right of way after paying a indemnity. However, the donor A1 B A2
shall not be liable for indemnity. (n)
A4
A3 A5
Articles 652 and 653 are related. What are the rules?
 In case of sale, exchange or partition (meaning the PUBLIC HIGHWAY
contract is onerous):
-‐ If the estate of the seller is the
A sold a parcel of land, surrounded by other estates, to B. B
enclosing estate, the buyer doesn’t
has no outlet. A gave B an outlet through A4.
need to pay indemnity for the
 A is obliged to give an outlet because he sold the
easement of right of way. The seller
enclosed estate to a buyer. The buyer is entitled to
can demand, legally, an easement of
a right of way without indemnity.
right of way. Bakit niya bibilhin yung
 Later, the outlet in A4 property became useless.
enclosed estate diba?
Hindi na siya passable, maybe it became flooded,
-‐ If it is the enclosed estate, the seller
etc. Is B allowed to get another outlet?
must pay the buyer indemnity for the
Yes. He can demand another outlet but no
establishment of the right of way.
longer under Article 651 but under Article
Example: If it is Encarnacion who is
649. Therefore, he must now pay
the seller and De Sagun is the buyer…
indemnity.
And he sold the entire property on the
If the road in A4 is no longer
highway, if he wants to retain a right
passable, then he still has a right to
of way, he must pay. (Encarnacion vs.
demand right of way but NOW he is
CA)
governed by Article 649. He cannot
 For donation, it is the other way around.
demand another outlet under Article 652
-‐ The donee is the one who will give the
because an outlet was already granted to
property. (?)
him when the sale was made. This time,
the necessity arises not because of the
In the case of Villanueva vs. CA, when Gabriel sold the
sale.
property to Espinola. Espinola has no outlet. Therefore,
Espinola could demand for an outlet. That’s why there was
Next illustration:
a case filed against Gabriel. Hence, this is applicable. That is
why there is no need to pay indemnity.
Article 649 is for a pure legal easement, when there is no

buyer-‐seller relationship. No vendor-‐vendee nor donor-‐
donee property. It just so happened that one property is
enclosed and the other has access to the highway. So you
have to know what provision to apply for payment of
indemnity for legal easements of right of way.
algene c.
148
ESTATE 2
(Sold by A to C)
ESTATE 1
(Sold by A to B)
PUBLIC HIGHWAY
algene c.
149
A owns two estates. He sold estate 1 to B and sold estate 2

 The necessary repairs shall be made by the
to C. C has no access to the highway. In order to gain
owner of the dominant estate.
access, he has to pass thru B’s land.
 What if the right of way is a dirt road and the
 Does C need to pay indemnity to B?
dominant owner wants it to be cemented? Can
Yes. Because the applicable provision here
he demand from the servient owner to cement
is Article 649 and not Article 652.
the road?
 If the estate 1 was not sold to B, then A has to give
NO. (Read the explanation below.)
C a right of way without indemnity.
 But since it is now sold to B, who is also a buyer, Article 627 gives us the right of the dominant owner. He can
then Article 652 will apply.
make, at his on expense, on the servient estate, any works
necessary for the works and preservation of the servitude.
I hope you can distinguish between the two 
So, yes, he can. As long as it is necessary for the works and
preservation.
RULES:
1. Article 649 Article 654 talks about necessary repairs so it coincides
 There is a requirement for the payment of with Article 627.
indemnity. (Permanent passage)
 Applicable only if there is no buyer-‐seller If you look at the obligations of the servient owner, under
nor donee-‐donor relationship. Article 628, he must contribute to the expenses in
Exception: If the right of way proportion to the benefits he received. The servient owner
previously granted by the seller is only obliged to pay the necessary repairs if he also
becomes useless and no longer benefits from it.
passable, the buyer can demand
for a right of way under Art. 649. Anything beyond that (beyond necessary repairs), like
2. Article 652 cementing the dirt road, is no longer the obligation of the
 Applies when there is: servient owner. If it is a compulsory easement, his
-‐ Sale obligation is only to give or provide an outlet. If it is a
-‐ Exchange voluntary easement, his obligation is only to give whatever
-‐ Partition he voluntarily agreed. The dominant owner cannot impose
-‐ Donor upon him to make improvements on the easement. This is
 ONEROUS: Seller (sale), exchanger different from usufruct.
(exchanger) or co-‐owner (partition) has
the obligation to grant a right of way “A proportionate share of the taxes shall be reimbursed
without indemnity. by said owner to the proprietor of the servient estate.”
 GRATUITOUS: Donee shall pay indemnity Who pays for the land taxes? Definitely, the owner of the
to the donor for the establishment of right land.
of way.
If the entire estate of the servient owner is 1,000 sq. m., the
September 4, 2014 easement of right of way is 100 m. and the realty taxes
amount to P1,000, then that taxes for the area used as a
We’re still on legal easement of right of way. right of way shall be reimbursed by the dominant owner to
the servient owner.
Art. 654. If the right of way is permanent, the necessary
repairs shall be made by the owner of the dominant Art. 655. If the right of way granted to a surrounded estate
estate. A proportionate share of the taxes shall be ceases to be necessary because its owner has joined it to
reimbursed by said owner to the proprietor of the servient another abutting on a public road, the owner of the
estate. (n) servient estate may demand that the easement be
extinguished, returning what he may have received by
Who is liable for the repairs that have to be done on way of indemnity. The interest on the indemnity shall be
easement of right of way? According to Article 654, it deemed to be in payment of rent for the use of the
depends. easement.
The same rule shall be applied in case a new road
algene c.
150
is opened giving access to the isolated estate.

In both cases, the public highway must “The same rule shall be applied in case a new road is
substantially meet the needs of the dominant estate in opened giving access to the isolated estate.”
order that the easement may be extinguished. (568a)
Okay, let me ask a question first. In the first situation I
ROAD discussed earlier, is the compulsory easement of right of
way automatically extinguished? Can merger, as a ground
C D E R for extinguishment, be applied? (Answer: NO) If B buys the
R O estate of F, he now has an access to the highway. Is the
O B A easement of right of way on the estate of A extinguished?
A F (dominan G D (Answer: NO)
D t) Under Article 631, this does not extinguish
A an easement. This does not exist – the non-‐
H (servient ) I necessity of the easement. Article 631 gives us the
ground of extinguishment of the easement in
ROAD general, whether it is a legal or voluntary
easement.
Who is entitled to a compulsory easement of right of way? The easement on the land of A is not
B. So, let’s just say B has compulsory easement of right of automatically extinguished. A may demand that
way through the property of A which is the most the easement be extinguished. If he doesn’t
convenient and least prejudicial way for him to reach the demand, then it will continue. A must also return
highway. Later, B purchased the estate of F. A (the owner the indemnity. According to the provision, he was
of the servient owner) may demand that the easement be able to earn interest on the money (like he placed
extinguished and he should return the indemnity paid by B it in a bank) paid by the dominant owner so hindi
(dominant owner). unfair for him.
Illustration: Basis: Article 655: “xxx the owner of the servient
estate may demand that the easement be
After purchase (1st situation): extinguished, returning what he may have
received by way of indemnity.”
ROAD
“In both cases, the public highway must substantially meet
C D E R the needs of the dominant estate in order that the
R O easement may be extinguished.”
O A If the new road newly established (refer to the immediately
A B G D preceding paragraph) is 1 meter, only for the pedestrian,
D and B has a vehicle, then it is not enough for the easement
to be extinguished.
H A I
Let’s go to this issue: What if the easement of right of way
ROAD
on the land of A was voluntarily given to B? Can A demand
that the easement be extinguished because B already
If B purchases the estate of F, A can: bought the property of F?
1. Demand that the easement of right of way on his No. Articles 655 only refers to compulsory or legal
estate be extinguished easements.
2. Return the indemnity paid by B
Reason: B already has an access to the public road or My question is if it refers to voluntary easements as well,
highway. where should this provision be located?
Article 631. I already mentioned earlier that this
“The interest on the indemnity shall be deemed to be in article provides for the ground for extinguishment of
payment of rent for the use of the easement.” So the easement or servitude in general.
indemnity is actually refundable. If you pay for the value of
the property, you can get it back because it is no longer Note: The provisions of 649 onwards refer only to
required. compulsory easement of right of way. Hence, non-‐necessity
algene c.
151
of an easement is a ground of extinguishment only for legal

by the rules of co-‐ownership. (571a)
or compulsory easement. If it is voluntary easement, it is
not a ground. We already saw this in the case of Benedicto
What is a party wall? It is a wall on the dividing line of the
vs. Herras.
two estates.
Remember, for voluntary easements, non-‐necessity is not a
ground. Why? Because it was voluntarily given. The servient
owner can give the right of way whether or not there is
A B
another outlet to the public road or highway. Whether the
easement is necessary or not, that is not the concern of the
servient owner.
What is the presumption?
Art. 656. If it be indispensable for the construction, repair,
If there is a wall between two estates, the law
improvement, alteration or beautification of a building, to
presumes that it is a party wall. Co-‐ownership governs a
carry materials through the estate of another, or to raise
party wall.
therein scaffolding or other objects necessary for the
work, the owner of such estate shall be obliged to permit
Why is this easement under compulsory or legal
the act, after receiving payment of the proper indemnity
easements?
for the damage caused him. (569a)
Because it is a kind of easement where the shares
of the owner cannot be physically separated. Walang
Indemnity here is only for the damages caused. This is very
choice ang owners. The easement is the wall itself.
popular in subdivisions especially where there are houses
being built and the other lot is being used to put up
Art. 659. The existence of an easement of party wall is unless
scaffoldings. Sometimes, the materials are transported
there is a title, or exterior sign, or proof
presumed,
across, not through the roads, through the empty lots.
to the contrary:
In dividing walls of adjoining buildings up to the point of
Can the owner say “Pay indemnity because you are passing
common elevation;
thru the lot”? No. Only when there is/are damage/s. In dividing walls of gardens or yards situated in cities, towns, or
in rural communities;
Art. 657. Easements of the right of way for the passage of In fences, walls and live hedges dividing rural lands. (572)
livestock known as animal path, animal trail or any
other, and those for watering places, resting places and
animal folds, shall be governed by the ordinances and Article 659 is the provision which tells us the general
regulations relating thereto, and, in the absence presumption that “The existence of an easement of party
thereof, by the wall is presumed.” Exception: “xxx unless there is a title, or
usages and customs of the place. exterior sign, or proof to the contrary.”
Without prejudice to rights legally acquired, the
animal path shall not exceed in any case the width of 75 General rule: Easement of party wall exists
meters, and the animal trail that of 37 meters and 50
centimeters. (1) In dividing walls of adjoining buildings up to the point of
Whenever it is necessary to establish a common elevation
compulsory easement of the right of way or for a watering In San Pedro St., dikit-‐dikit ang buildings. Example: We have a 3
place for animals, the provisions of this Section and those story building and another 5 story building na magka-‐dikit. This
of Articles 640 and 641 shall be observed. In this case the wall, up to the common point of elevation, it is presumed to be a
width shall not exceed 10 meters. (570a) party wall.
Just read Article 657. We already discussed this.
Let’s go to EASEMENT OF PARTY WALL.

Art. 658. The easement of party wall shall be governed by
the provisions of this Title, by the local ordinances and
customs insofar as they do not conflict with the same, and
algene c.
152
A B
In all these cases, the ownership of the walls,
fences or hedges shall be deemed to belong exclusively to
(2) In dividing walls of gardens or yards situated in cities,
the owner of the property or tenement which has in its
towns, or in rural communities
favor the presumption based on any one of these signs.
Ito yung sa mga subdivisions.
(573)
(3) In fences, walls and live hedges dividing rural lands
EXTERIOR SIGNS:
Yung mga barb-‐wires around agricultural estates.
Barb-‐wire fences are presumed to be party wall.
(1) Whenever in the dividing wall of buildings there is a
window or opening
Exceptions:
1. If there is a title
Example: In the TCT of A, it is expressly
stated there that there is a fence in the
house of A.
2. If there is an exterior sign
3. If there is proof to the contrary
A B
Let’s say A bough the lot from X. In the
deed of absolute sale, it is stated that X
Owner of the wall: B. B is the one who can look
sells the house and the fence around the
into the property of B. (Note: Window opens
house to A. There is proof that it is not a
inward)
party wall.
(2) Whenever the dividing wall is, on one side, straight and
If there is conflict between a title and an exterior sign, the
plumb on all its facement, and on the other, it has similar
title shall prevail.
conditions on the upper part, but the lower part slants or
projects outward
What are the exterior signs? That the wall is not a party
wall. That is provided for under Article 660.
A B
Art. 660. It is understood that there is an exterior sign,
contrary to the easement of party wall:
(1) Whenever in the dividing wall of buildings
there is a window or opening;
(2) Whenever the dividing wall is, on one side, Owner of the wall: B.
straight and plumb on all its facement, and on the other, it
has similar conditions on the upper part, but the lower (3) Whenever the entire wall is built within the boundaries
part slants or projects outward; of one of the estates
(3) Whenever the entire wall is built within the
boundaries of one of the estates;
(4) Whenever the dividing wall bears the burden
of the binding beams, floors and roof frame of one of the A B
buildings, but not those of the others;
(5) Whenever the dividing wall between
courtyards, gardens, and tenements is constructed in such
a way that the coping sheds the water upon only one of Owner of the wall: B. The wall was in his estate
the estates; .
(6) Whenever the dividing wall, being built of (4) Whenever the dividing wall bears the burden of the
masonry, has stepping stones, which at certain intervals binding beams, floors and roof frame of one of the
project from the surface on one side only, but not on the buildings, but not those of the others
other;
(7) Whenever lands inclosed by fences or live
hedges adjoin others which are not inclosed.
algene c.
153
A
Art. 661. Ditches or drains opened between two estates are also
B presumed as common to both, if there is no title
or sign showing the contrary.
There is a sign contrary to the part-ownership
‐ whenever the
earth or dirt removed to open the ditch or to clean it is only on
Owner of the wall: A. Because his building is the one side thereof, in which case the ownership of the ditch shall
one that supports the wall. belong exclusively to the owner of the land having this exterior
sign in its favor. (574)
(5) Whenever the dividing wall between courtyards,
gardens, and tenements is constructed in such a way that
the coping sheds the water upon only one of the estates
If there is a ditch between two estates (A and B) and all the
dirt and soil are on the lot of B, who is the owner? B.
Note: Nag-‐draw si Atty. S. but I was not able to copy it. 
A B
Owner of the wall: B. If the water falls on his A B C

property, then he is the owner.
(6) Whenever the dividing wall, being built of masonry, has D E F

stepping stones, which at certain intervals project from the
surface on one side only, but not on the other;
A B
Owner of the wall: B.
(7) Whenever lands inclosed by fences or live hedges adjoin

others which are not inclosed.
Owner of the wall: E.
In all these cases, the ownership of the walls, fences or

hedges shall be deemed to belong exclusively to the owner
of the property or tenement which has in its favor the
presumption based on any one of these signs.
What if there are conflicting signs? What is the effect? Like

the beam is on the building of A tapos the window is on the
building of B? (Weird noh?)
It is now presumed to be a party wall again. Ma-‐
cancel out ang exterior signs.
algene c.
154
Art. 662. The cost of repairs and construction of party walls and not being used in the legal community and not being
the maintenance of fences, live hedges, ditches, and drains discussed in fourth year.
owned in common, shall be borne by all the
owners of the lands or tenements having the party wall in their CASES
favor, in proportion to the right of each.
Nevertheless, any owner may exempt himself from CASE vs. HEIRS OF TUAZON: Did the exterior signs matter?
contributing to this charge by renouncing his part-‐ ownership, No. The title prevails over all exterior signs. Even if there
except when the party wall supports a building belonging to him. are 1,000 signs in favor of Case, if the title belongs to
(575) Tuazon, then Tuazon’s title is preferred.
Obviously, the party wall is subject to co-‐ownership so the LAO vs. HEIRS OF ALBURO: There are exterior signs here
rules on co-‐ownership are applicable, including that of that indicate the existence of a party wall.
renunciation.
VALENZUELA vs. UNSON: The exterior signs cancelled out
Art. 663. If the owner of a building, supported by a party each other so there is a presumption that there exists a
wall desires to demolish the building, he may also party wall.
renounce his part-‐ownership of the wall, but the cost of all
repairs and work necessary to prevent any damage which Let’s go to EASEMENT OF LIGHT AND VIEW.
the demolition may cause to the party wall, on this
occasion only, shall be borne by him. (576) When we discussed how an easement is acquired, we said
that there are two ways: by virtue of a title and by
Art. 664. Every owner may increase the height of the party prescription.
wall, doing at his own expense and paying for any damage
which may be caused by the work, even though such damage be If the easement of light and view is acquired by
temporary. prescription, is it a legal easement or a voluntary easement?
The expenses of maintaining the wall in the part newly raised or We will see later.
deepened at its foundation shall also be
paid for by him; and, in addition, the indemnity for the If it is acquired by virtue of a title, is it a legal or voluntary
increased expenses which may be necessary for the easement? It depends. If it is legal, it is under Article 624. If
preservation of the party wall by reason of the greater height or the benefit is voluntarily given, it is a voluntary easement.
depth which has been given it.
If the party wall cannot bear the increased height, the owner Art. 667. No part-‐owner may, without the consent of the open
desiring to raise it shall be through
others, the party wall any window or
obliged to
reconstruct it at his own expense and, if for this purpose it be aperture of any kind. (580)
necessary to make it thicker, he shall
required from his own land. (577) give the space
This is related to party-‐wall. If this is a party wall (draws on
the board), neither A nor B can open a window through a
Art. 665. The other owners who have not contributed in party wall.
giving increased height, depth or thickness to the wall
may, nevertheless, acquire the right of part-‐ownership What is the effect if there is a window? There’s a
therein, by paying proportionally the value of the work at presumption that it is not a party wall. (Note: The window
the time of the acquisition and of the land used for its here is not allowed.)
increased thickness. (578a)
BUT there could also be a window there build by one and
Art. 666. Every part-‐owner of a party wall may use it in allowed by the other to continue. If that window has been
proportion to the right he may have in the co-‐ownership, there for ten years, it acquires the status of an easement.
without interfering with the common and respective uses (Note: The window here is tolerated by the other owner.)
by the other co-‐owners. (579a)
Is that wall still a party wall? Yes. There are two easements
This may be the only time you will read these provisions there:
(referring to Articles 663-‐6) in your entire life. These are 1. Easement of party wall
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2. Easement of view (in favor of the one who opened

Let’s analyse Article 669. It says that “When the distances
the window)
in Article 670 are not observed xxx”. So we have to go to
Article 670 first. What does 670 say?
Example: A and B are the co-‐owners of a party wall.
 A cannot make an opening on the party wall
Art. 670. No windows, apertures, balconies, or other
without the consent of B.
similar projections which afford a direct view upon or towards
 If A opens a window and B does not oppose, then
an adjoining land or tenement can be made, without leaving a
A can acquire an easement of view by virtue of
distance of two meters between the wall in which they are made
prescription from the time he opens it. and such contiguous property.
 A can consider the wall as his in view of the Neither can side or oblique views upon or towards such
exterior sign. He can now claim. conterminous property be had, unless there be a distance of sixty
 What can B do before the 10 year period is over? centimeters.
He can order that the window be closed. The nonobservance of these distances does not give rise to
prescription. (582a)
Is an easement acquired by prescription a voluntary
easement or a legal easement? Legal easement.
Maybe the one who did not oppose the window The law says that the distance must be 2 meters between
voluntarily agreed but it is the law that says that the wall and the adjacent property. (1st paragraph)
the easement has been acquired through
prescription. LOT A LOT B
Art. 668. The period of prescription for the acquisition of an

easement of light and view shall be counted:
From the time of the opening of the window, if it is through a
party wall; or
From the time of theupon the proprietor of the
formal adjoining land or
prohibition
tenement, if the window is through a wall on the dominant
estate. (n) 2 m.
Period of prescription shall be counted from: If oblique, the law says that the distance must be 60
1. The time of the opening of the window if it is centimeters.
through a party wall (positive easement)
We already discussed. (Refer to the LOT A LOT B
discussion under Art. 667) House is like this:
2. The time of the formal prohibition upon the
proprietor of the adjoining land or tenement if it
is through a wall on the dominant estate (negative
easement)
LOT A LOT B
60 cm.
By the way, we are only talking here of the provisions of

the Civil Code on easement. If the Building Code and other
special laws say otherwise, then so be it. Basta, we are
studying here the Civil Code.
A notarial prohibition must be issued first Those are the distances under Article 670. Let’s go back to
before the prescription period Article 669.
commences to run. (Period: 10 years)
Art. 669. When the distances in Article 670 are not
observed, the owner of a wall which is not party wall,
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adjoining a tenement or piece of land belonging to

another, can make in it openings to admit light at the
height of the ceiling joints or immediately under the
ceiling, and of the size of thirty centimeters square, and, in
every case, with an iron grating imbedded in the wall and
with a wire screen.
Nevertheless, the owner of the tenement or
property adjoining the wall in which the openings are
made can close them should he acquire part-‐ownership If there’s a one meter distance between the wall of A’s
thereof, if there be no stipulation to the contrary. building and the boundary line of A and B’s lots, a restricted
He can also obstruct them by constructing a window is allowed. So, A now has a restricted window
building on his land or by raising a wall thereon here. There is nothing on the lot of B.
contiguous to that having such openings, unless an  Can that window be closed by A?
easement of light has been acquired. (581a) No. because it is allowed by Article 669. If
your distance does not comply with Article
If the distance is only one meter (refer to illustration 1 under 670, restricted window is allowed.
Art. 670), can A have a full window?  Can B close the window of A on the wall on which
the restricted window was built?
No, according to Article 669.
No.
What kind of window can A build?  Under Article 669, B can close the window but
there is one condition: that he acquires part
Restricted window.
Basis: Art. 669: “ xxx make in it openings to admit ownership. So, the wall of A must become a party
light at the height of the ceiling joints or wall. Under Article 667, you cannot put a window if
immediately under the ceiling.” The size is 30cm. it is a party wall, diba? So if B buys the wall of A, he
can close the window. Unless there is a stipulation
NOT: BUT: in A and B’s agreement that B cannot close the
window.
 Generally speaking, for as long as A owns the wall,
he can have the restricted window because it is
only for light and not for view.
 If B acquires part ownership of the wall:
If you are facing the other lot, you cannot build a 1. He can close the window OR
full window. Your window must be a restricted window. 2. Demand A to close the window
(Note: Restricted window is allowed if the distance Reason: No window opening is allowed on
between the wall of the house on which the window was a party wall.
built and the boundary line of the properties are less than
2m.) This sentence does not apply to our example
above. In our example, B cannot acquire ownership of the
“Nevertheless, the owner of the tenement or property wall because it is inside the property of A. The second
adjoining the wall in which the openings are made can close sentence applies to this (when there is no distance
them should he acquire part-‐ownership thereof, if there be between the wall and the boundary line):
no stipulation to the contrary.”
LOT A LOT B
Is this a continuation of the first sentence? How do you
analyze it?
LOT A LOT B
“He can also obstruct them by constructing a building on

his land or by raising a wall thereon contiguous to that
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having such openings, unless an easement of light has been

Let’s go to an illustration: X made a restricted window on
acquired.”
his wall for light. What can Y, the adjoining owner, do
If walang observance of the distances under Article
within 10 years from the date of notarial prohibition?
670, pwede tabihan ni B ang building ni A. He can obstruct
 Y can obstruct the light by:
the light unless an easement of light and view has been
1. Building a building on his property
acquired.
(like his house is higher) OR
2. Building a blocking wall
LOT A LOT B
We already looked at Article 670. The first two sentences
are very easy. Now, the last sentence (“The nonobservance
of these distances does not give rise to prescription”) is
confusing. Discussion found under 9-‐8-‐14.
Art. 671. The distance referred to in the preceding article

shall be measured in cases of direct views from the outer
line of the wall when the openings do not project, from
When can A acquire an easement of light? 10 years from the outer line of the latter when they do, and in cases of
notarial prohibition. oblique view from the dividing line between the two
properties. (583)
If A acquired an easement of light, then B cannot build a
building which would block the light. B could build a
building provided it is done with a distance of 3 meters Refer to the drawing of the example in cases of oblique view.
from the boundary line.
It is permissible to build even up to the boundary line? Yes.
In other words, Article 669 talks about a situation where: In subdivisions, it is not allowed to build up to the boundary
 1st sentence: the wall of the building is less than 2 line. There must be a setback (2 m etc.) That is according to
meters away from the boundary line the Deed of Restrictions.
 2nd sentence: a wall being there na on the
boundary (that’s why B can acquire co-‐ownership BUT under the Civil Code, you can build up to the boundary.
na) You can open a restricted window because it is your
 3rd sentence: a situation wherein the windows can property. But that can be blocked by your neighbor who
be obstructed by B will build a higher building from the boundary line.
Except: when the easement of view has
been acquired by A Let’s say the window is in favor of A. When A built on his
building, there was a window so that is his wall. But si B
Restricted windows are only for light. That is why they have constructed a taller building and blocked the window. So
to be located right under the ceiling, the beam. the window now opens towards the building of B. Now,
who owns the wall where the window was built? Answer:
Unless the easement of light has been acquired, the light A. Because the exterior sign says so.
from the restricted window may still be obstructed. That’s
the example here. So B can put a building right on the Let’s look at another illustration: On this wall, one meter
boundary line because the easement has not yet been from the boundary line, A opens a regular window with
acquired. direct view. May B, the adjoining owner, order A to close it
anytime?
Again, if the proper distances under Article 670 (2m and 60  Yes. Because it is not allowed.
cm) are observed, then windows are allowed (any sizes).
If after 10 years, B does not demand that the window be
That’s why if the wall is on the boundary line, that’s what closed, is his right of closure may be deemed prescribed?
you call a fire wall. Straight lang yan eh. You don’t see any This is our next topic.
windows. Sometimes, there are small windows but not for
overlooking. On a wall one meter away from the boundary line of A
opened a regular window with direct view. Can B, after the
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lapse of 10 years, legally obstruct the view of A by

constructing a building on his land or raising his wall? Yes.
If the window is regular and there’s only a 1.5 meter
distance, A will never acquire an easement of view over the
Art. 672. The provisions of Article 670 are not applicable to
property of B. Window was opened in 1990.
buildings separated by a public way or alley, which is not
less than three meters wide, subject to special regulations
Can B build a house that would block A’s window?
and local ordinances. (584a)
It depends if there is a notarial prohibition or not.
Do you watch teleseryes or movies? Have you seen those
Can B file an action in court and compel A to remove the big
houses with an alley in between? Yung mga may big
window in 2001?
balconies and alleys? Tapos dumudungaw lang sila sa alley?
Yes. The issue of light and view and notarial
The owner/s of the house can build regular windows
prohibition is totally separate from this issue. The
provided that the alley is 3 meters wide.
notarial prohibition is required whether or not the
distances are observed.
Building 1 Building 2
We are talking here of the “mere distances under Article

670.” The New Civil Code abrogated the ruling in Soriano
vs. Sternberg. In the said case, Sternberg acquired an
easement of light and view because 10 years had passed
from the day the window was opened even if it was built on
a wall with a distance of less than 2 m from the boundary
line of the two lots. (Note: Soriano vs. Sternberg is no
Alley (3 meters wide) for regular windows to be allowed
longer controlling.)
The provision of Article 670, restricting the big windows, 2
If you do not observe the distance, it will not give rise to
m., etc. does not apply to buildings separated by public
prescription.
alleys separated by not less than 3 m. wide. If the alley is 2.8
m wide, then you cannot build big windows. Restricted
Lot A Lot B
windows lang. The 3-‐meter alley is like the distance
between two buildings. But this is subject to special
regulations and local ordinances.
September 8, 2014
Note: Reporting on last paragraph of Article 670 – “The

2.5 meters
nonobservance of these distances does not give rise to
prescription.”
BUT if the distance between the property is 2.5 meters and
there’s a big window, then B cannot close it.
The notarial prohibition refers to the notice of the light and
view from the window or the balcony. Whether the
The controversial issue here is the ruling of the SC in the
distance is 2.5 or 1.5 meters, he needs a notarial prohibition.
case of Soriano vs. Sternberg. The ruling there was
That is why you have to look at what we are talking about.
different from Article 670. We have to really on one thing –
We are talking about regular windows.
the provision which is later than the decision in the Soriano
case.
Lot A Lot B
What if the window was on the wall on the boundary line?
We have here a restricted window. We know the rule that a
window is not allowed in a party wall. If there’s a window in
the wall, then that is not a party wall.
Less than 2 meters (did not observe distance)

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159
Lot A Lot B
Lot A Lot B
EMPTY LOT
According to the provision, can B close the window of the 2 meters

wall?
No. Take note that the wall is not a party wall. The In 1999, can B build a building on the boundary that would
window is a restricted window which is allowed. If B really block the window from entering the window of A?
acquires co-‐ownership of the wall, that is the time that he Yes. A has not acquired an easement of light and
can close the window. view because it has not yet been 10 years from notarial
prohibition.
Let’s say B acquires co-‐ownership of the wall in 2001 and
the window was still there. Remember, it was opened in Let’s say it’s already 2001, can B build the building? B says
1990. Can he close the window in 2001? “What can I do? There’s a notarial prohibition against my
No. Because A has already acquired the easement. property. Does it mean that I can no longer use my lot?”
In other words, Article 670 applies to big windows and NO, B can still build the building provided that he
shorter distance. Yung sa example natin (refers to the builds at a distance of 3 meters from the boundary line.
window on the wall on the boundary line), it is already a
restricted window. That’s why it can be acquired through Lot A Lot B
prescription.
Take note:
 Big windows + Short distance = NOT ALLOWED
 Restricted window on the wall built on the
boundary line = NOT ALLOWED but it can be
acquired through prescription 2 meters 3 meters
 What can we do in relation to this issue (when the
distance is not properly observed)? Compel him to What do you mean by not blocking the easement of light
close it or put a restricted window. Can it be and view that has already been acquired by any title? The
blocked by the other lot owner? Yes. Anytime. distance from the building (however tall it is – because the
owner can build as high as he wants) and the boundary line
Now, let’s look at Article 673. must be 3 meters.
Art. 673. Whenever by any title a right has been acquired September 9, 2014
to have direct views, balconies or belvederes overlooking
an adjoining property, the owner of the servient estate We’re still in Article 673. Our example yesterday was an
cannot build thereon at less than a distance of three easement of light of view acquired through prescription –
meters to be measured in the manner provided in Article with notarial prohibition (negative easement). But there
671. Any stipulation permitting distances less than those are other ways of acquiring an easement of light and view
prescribed in Article 670 is void. (585a) under Article 673.
First situation: A has a big window and the distance is 2 Article 673 is applicable if the easement was acquired by
meters so in accordance with Article 670. A gave a notarial virtue of a title – if it is granted by another party. For
prohibition to B in 1990. example, B (the neighbor who owns the lot), A (who has a
big window) can say to B “I enjoy the view and I need the
morning sun. Can you please not block the window?” If B
says okay, then that’s it. They will come up with an
agreement wherein B will not build anything within 3
meters from the boundary line.
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Article 674 is very simple. If you have a house on your

They could also limit the height of B’s roof to 10 meters. property and there is a roof with no gutter (the thing that
Can B say “Okay since there’s a limit in my roof of 10 catches the water)…
meters. I will build my house at a distance of less than 3
meters from the boundary line since there’s a limitation on The provision says: “The owner of a building shall be
my height.”? Is this allowed? obliged to construct its roof or covering in such manner
No. Basis: Art. 673 -‐ Any stipulation permitting that the rain water shall fall on his own land or on a street
distances less than those prescribed in Article 670 is void. or public place, and not on the land of his neighbor, even
though the adjacent land may belong to two or more
Can B say “Okay, since I have to build 3 meters away. I will persons, one of whom is the owner of the roof.”
build a house with a height of 50 meters.” Is this allowed?
Yes. Do you remember this case? This is the case of Cabacungan
Basis: NPC vs. Ibrahim and Article 437 vs. Corales. Corales owned one lot and he is the co-‐owner
What if A says “Sige, pwede less than 3 meters nalang.” of the other lot. The water was falling on the other lot
What is the minimum distance? 2 meters if by agreement which she co-‐owned. So the sisters who co-‐owned the lot are
(Article 670). saying na why is she not following the easement on drainage.
She said that there was a merger of the dominant and servient
Let’s say the easement of light and view was acquired by estate because she owns the lot and co-‐owns the other lot.
title under Article 624? What’s that? The SC said that for merger to be completely extinguished,
If A acquires an easement of light and view under there must be absolute merger – like Corales should be the full
Article 624, B needs to respect such easement. He can still owner of lot 1 and lot 2.
build a building on his lot (as high as he can) provided that
it is made at a distance of 3 meters from the boundary line Remember that the Civil Code is a very old law, do you think
of lots A and B. under our new Building Code and other codes, a person is
allowed to make the water fall in a public place? I don’t
Does B need to wait 10 years under Article 624 before he think so. The only place for the water to fall is one’s own
can build? (Answer: NO) Does A need to give a notarial land.
prohibition to B? (Answer: NO)
The easement was acquired by title and snot by This provision should not even exist. This is already
prescription. Notarial prohibition and 10 years are only common sense or etiquette. The owner of the lot shall not
required in negative easements acquired by prescription. prejudice his neighbor or the public.
If the easement was acquired by title, what’s the title? “Even if it should fall on his own land, the owner shall be
Article 624 of the Civil Code. obliged to collect the water in such a way as not to cause
damage to the adjacent land or tenement.”
According to Paras, the word “title” under Article 673
refers to an easement acquired by title, either by CASE:
agreement or law, or by prescription. The word “title” is
general which refers to all other ways of acquiring PURUGGANAN vs. PAREDES: What kind of easement do we
easement. Article 673 applies for easement acquired under have here? Voluntary easement established by the
Article 624 which is acquired by title. voluntary will of the parties.
Purugganan, who voluntarily gave the easement to
Art. 674. The owner of a building shall be obliged to Paredes, allowed the water to fall on his land. The house of
construct its roof or covering in such manner that the rain Paredes was already on the boundary. So where else should
water shall fall on his own land or on a street or public the water fall? That is why Purugganan gave an easement
place, and not on the land of his neighbor, even though of 1 meter.
the adjacent land may belong to two or more persons, one How do compare that voluntary easement of
of whom is the owner of the roof. Even if it should fall on drainage that was established by the voluntary will of the
his own land, the owner shall be obliged to collect the parties and the legal easement under Article 674? Under
water in such a way as not to cause damage to the Article 674, there is no servient owner. There is really no
adjacent land or tenement. (586a) easement under Article 674. It only prescribes a regulation.
It’s just a limitation on one’s ownership. If you build your
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161
house, you better make sure that you do not prejudice your
near fortified places or fortresses without compliance
neighbor by making the water fall on his lot.
with the conditions required in special laws, ordinances,
But in this case, the easement was voluntarily
and regulations relating thereto. (589)
given. There was an easement of drainage wherein in
Purugganan expressly allowed the water from the roof of
So you have to look at the special laws, ordinances, etc.
Paredes to fall on his lot. However, the roof shall not
exceed the 1 meter width of his lot.
Art. 678. No person shall build any aqueduct, well, sewer,
Nowadays, there are many houses that build up to
furnace, forge, chimney, stable, depository of corrosive
the boundary. The regulation is that under Article 674. If it’s
substances, machinery, or factory which by reason of its
up to the boundary, there must be a wall that would stop
nature or products is dangerous or noxious, without
the water from going to another’s property. This is what
observing the distances prescribed by the regulations and
Paredes should have done. He should have built a higher
customs of the place, and without making the necessary
roof so that the water would fall on his property pursuant
protective works, subject, in regard to the manner
to Article 674. But in this case, Purugganan was kind
thereof, to the conditions prescribed by such regulations.
enough to allow the water to fall on his land.
These prohibitions cannot be altered or renounced by
stipulation on the part of the adjoining proprietors.
Art. 675. The owner of a tenement or a piece of land, subject to
In the absence of regulations, such precautions
the easement of receiving water falling from roofs, may build in
shall be taken as may be considered necessary, in order to
such manner as to receive the water
avoid any damage to the neighboring lands or tenements.
upon his own roof or give it another outlet in accordance with
(590a)
local ordinances or customs, and in such a way as not to cause
any nuisance or damage whatever to the dominant estate. (587) So you have a factory which omits corrosive substances,
what’s the distance? Where should you build it? What is the
distance from a subdivision? Well, Article 678 doesn’t say
There are some people who have a little gutter on their anything about it. It only said that you refer to the
roof that catches the water. That is under Article 675. regulations, the ordinances, customs of the place, etc. No
stipulation that violates these ordinances or regulations
Art. 676. Whenever the yard or court of a house is should be valid.
surrounded by other houses, and it is not possible to give
an outlet through the house itself to the rain water Art. 679. No trees shall be planted near a tenement or
collected thereon, the establishment of an easement of piece of land belonging to another except at the distance
drainage can be demanded, giving an outlet to the water authorized by the ordinances or customs of the place, and,
at the point of the contiguous lands or tenements where in the absence thereof, at a distance of at least two meters
its egress may be easiest, and establishing a conduit for from the dividing line of the estates if tall trees are
the drainage in such manner as to cause the least damage planted and at a distance of at least fifty centimeters if
to the servient estate, after payment of the property shrubs or small trees are planted.
indemnity. (583) Every landowner shall have the right to demand
that trees hereafter planted at a shorter distance from his
This can be legally demanded. This is a legal easement of land or tenement be uprooted.
drainage. The situation is that the house is sitting exactly on The provisions of this article also apply to trees
the lot (50 sq. m.) so ang house in 50 sq. m. talaga. which have grown spontaneously. (591a)
Article 676 provides: “xxx the establishment of an If you want to plant a tree, Article 679 says: “xxx
easement of drainage can be demanded, giving an outlet to authorized by the ordinances or customs of the place.” So
the water at the point of the contiguous lands or you have to refer to the ordinances or customs first. If
tenements where its egress may be easiest.” there’s none (no special laws, ordinances, customs), how
far from the wall should the tree be planted?
Just like the legal easement of right of way, there must be  If it’s a large tree (like coconut trees) -‐ 2 meters
indemnity. You cannot just make the water fall on your from the boundary line
neighbor’s land and not pay for indemnity.  Shrubs or small trees – 50 cm
Art. 677. No constructions can be built or plantings made
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162
What’s the remedy of the landowner whose right was

and regulations, factories and shops may be maintained
violated?
provided the least possible annoyance is caused to the
Demand that trees hereafter planted at a shorter
neighborhood.
distance from his land or tenement be uprooted.
Let’s go to lateral and subjacent support. Let’s go first to
Art. 680. If the branches of any tree should extend over a
the provisions.
neighboring estate, tenement, garden or yard, the owner
of the latter shall have the right to demand that they be Article 684. No proprietor shall make such excavations
cut off insofar as they may spread over his property, and, upon his land as to deprive any adjacent land or building of
if it be the roots of a neighboring tree which should sufficient lateral or subjacent support.
penetrate into the land of another, the latter may cut
them off himself within his property. (592) We have two kinds of support here:
1. Lateral support – same level
If you have a tree and the branches are falling on your Example: When both the land being
neighbor’s trees plus it has fruits… Article 680 says: “the supported and supporting land are on the
owner of the latter shall have the right to demand that they same level. As an owner, we already know
be cut off insofar as they may spread over his property.” under Article 437, that the land owner can
excavate as far as he wants to. However,
The neighbor who is the recipient of the branches of the he cannot do so if by such action, a
rambutan, can he harvest the fruits? No. He can only building on the other lot will collapse or
demand that that the branches be cut off. Remember, the adjacent properties may crumple.
under the principle of accession, the owner of the land is 2. Subjacent support – support from underneath
the owner of the tree. when the land supported is above the supporting
land
If the roots of the tree comes out from the neighbor’s land, Example: A owns a parcel of land with a
then the neighbor is now the owner of the tree. So he can house but underneath, the soil is being
cut of the root himself. This is very simple. used by B in connection with a tunnel. B
must not undermine the support of the
Art. 681. Fruits naturally falling upon adjacent land belong house by building the tunnel very close
to the owner of said land. (n) underneath the house.
What about fruits hiding from the tree? This belongs to the Article 685. Any stipulation or testamentary provision
owner of the tree. But the fruits naturally falling on the allowing excavations that cause danger to an adjacent land
neighbor’s land shall belong to the neighbor. or building shall be void.
September 10, 2014 Article 686. The legal easement of lateral and subjacent
support is not only for buildings standing at the time the
Let’s go to EASEMENTS AGAINST NUISANCE. excavations are made but also for constructions that may
be erected.
Art. 682. Every building or piece of land is subject to the
easement which prohibits the proprietor or possessor This applies to future constructions.
from committing nuisance through noise, jarring,
offensive odor, smoke, heat, dust, water, glare and other Article 687. Any proprietor intending to make any
causes. excavation contemplated in the three preceding articles
shall notify all owners of adjacent lands.
We already took up nuisance. And here, we have a legal
easement against nuisance. The servient owner is the one There are high-‐rise condominiums noh with underground
who owns the building or the land that is a nuisance. The parking spaces. They have to make sure that the surrounding
dominant owner in this case is the general public or the areas will not be prejudice by its constructions – the houses
person disturbed by the nuisance. will not sink or the lands crumble.
Art. 683. Subject to zoning, health, police and other laws CASES
algene c.
163
 Impose restrictions on the property he owns for

NGO SIN SING vs. LI SENG GIAP: Take note that under our the purpose of selling to others
provisions, we don’t have any provisions as to the liability These others who buy are considered as successors-‐in- ‐
of the entity or the party who makes excavations and interests who are bound by the impositions, limitations or
deprives an adjacent owner of lateral or subjacent support. conditions imposed by the owner.
But in this case, the SC said that there is still liability
that is based on torts (Article 2176) and therefore, damages A classic example of this is the subdivision developer.
can be collected from the party who caused the Generally, the developer owns the subdivision. Then, he
excavations. subdivides and sells to different buyers. The buyers have to
However, in this case, it was also proven that the sign a document called of Deed of Restrictions wherein it is
building was not safe. It exceeded what was granted in the enumerated there that: buyers of the lots must have a
permit which allowed 2-‐storey building only. But the setback, the fence must only be 2 meters high, the house
building here was 4-‐storey and the materials used were not must only be 2-‐storey, the design must be Asian modern,
durable. etc. Pwede to lahat as long as it does contravene the laws,
the public policy or public order. Is there a law which
CASTRO vs. MONSOD: What kind of easement do we have provides that the house should be Asian Modern-‐designed?
here? Voluntary easement. Only voluntary easements No. But the Deed of Restriction says so.
need
to be annotated on the title of the servient estate. Article 689. The owner of a tenement or piece of land, the
According to the SC in this case, a legal easement is If a parcel of
usufruct of 100 hectares
which of land
belongs to belonging
another, by X is impose
may subject
automatic. There is no need for annotation. Every owner to usufruct and the usufructuary is Y. Tapos at the
thereon, without the consent of the usufructuary, any back of
has the right to lateral and subjacent support – it is a legal the land is a community that has no access to the public
servitudes which will not injure the right of usufruct. (595)
easement. If the neighbor does something to disrupt it, the highway or maybe it has an access but the owner (X) was
neighbor shall be liable for damages. kind enough to give them access to the highway, can he do
What happened here is that by excavating the so? Of course yes.
portion of the land, there’s a possibility as provided under
Article 686. Monsod wanted that easement of lateral and Does he need to ask the consent of the Usufructuary? No.
subjacent support to be annotated in the title. The SC said To give voluntary easement of right of way – this is his right
na no need. The fact that the SC already issued an order, an as an owner of the property. It is his right to encumber the
injunction, preventing Castro from such acts is enough. It property.
would be superfluous to annotate that easement on the
title because it’s a legal easement. However, it says here: provided it does not prejudice the
right of the usufruct. This is the only condition.
Let’s go to VOLUNTARY EASEMENTS.
Aside from those easements that are established by the will

of the owners… let’s look at Article 688.
Article 688. Every owner of a tenement or piece of land may Article 690. Whenever the naked ownership of a tenement
establish thereon the easements which he may deem or piece of land belongs to one person and the beneficial
suitable, and in the manner and form which he may deem best, ownership to another, no perpetual voluntary easement
provided he does not contravene the laws, public may be established thereon without the consent of both
policy or public order. (594) owners. (596)
In other words, every owner can actually give an easement
to another. Naked ownership belongs to one and the beneficial
 Just like in the case of Purugganan. He decided to ownership belongs to another. Not necessarily usufruct ang
give a 1-‐meter easement for the water to fall on his situation dito, it could be something else.
property in favor or Paredes.
 An owner may also voluntarily give an easement of The naked owner and the beneficial owner (both) shall give
right of way. Just like in the case of Benedicto. consent to a perpetual voluntary easement. If it is merely
temporary (like allowing scaffoldings), then consent of
Aside from that, an owner can also:
algene c.
164
both is not necessary. Why? It is merely an act of

he binds himself and then later, he does not want to pay,
administration.
he can renounce his property in favor of the dominant
estate.
Granting a perpetual easement, which is a real right, is an
act of ownership. Therefore, the consent of both the naked
Imagine, who on his right mind should do this thing?
and beneficial owners must be given.
Anyway, just take note of this provision.
Take note that naked owner does not only refer to
CASES
usufruct. There are still other incidents.
NORTH NEGROS SUGAR vs. HIDALGO: Can North Negros
Article 691. In order to impose an easement on an
block the road? The SC said “Indeed North Negros may
undivided tenement, or piece of land, the consent of all
close it at its pleasure, as no period has been fixed when
the co-‐owners shall be required.
the easement was voluntarily constituted, but while the
The consent given by some only, must be held in
road is thrown open, North Negros may not capriciously
abeyance until the last one of all the co-‐owners shall have
exclude the Hidalgo from its use.”
expressed his conformity.
Diba there’s no contract and nothing annotated on
But the consent given by one of the co-‐owners
the land of North Negros. However, there was proof that
separately from the others shall bind the grantor and his
people were allowed to pass through the road by paying a
successors not to prevent the exercise of the right
certain amount. There’s nothing in the agreement that only
granted. (597a)
chosen persons or entities can pass. Hence, it cannot
discriminate.
This is very easy because you already know co-‐ownership.
This involves an act of alteration which requires unanimous Pero if it’s stated in the title, pwede. Like if I don’t
want you to pass in my road, I can do it if it’s in the title.
consent. But you don’t have to get the consent at the same
time, pwede by installment. Once the consent is given, The SC said that North Negros has two options:
1. To close the road and prevent all the people to
hindi na pwedeng umatras.
pass OR
Article 692. The title and, in a proper case, the possession 2. Let everyone pass including Hidalgo
The easement here is for the benefit of the
of an easement acquired by prescription shall determine
community.
the rights of the dominant estate and the obligations of
the servient estate. In default thereof, the easement shall
TRIAS vs. ARANETA: This is related to the case you studied
be governed by such provisions of this Title as are
in Consti – Ortigas vs. Feati – wherein Ortigas, as
applicable thereto. (598)
developers of Greenhills subdivision, also imposed an
easement. There is an annotation in every title of a
This is a voluntary easement. More often that not, there’s a
subdivision lot buyer in Greenhills that he can only
title constituting the easement. So if none, then we go to
construct a residential house in the subdivision. But as
the provisions of the Civil Code.
years went by and development reached that area (may
What governs voluntary easement? mga banks, stores, etc. na) and Ortigas did its best to
1. Title prevent the construction of the bank because of the
annotation of the title.
2. Civil Code provisions (if no title)
While annotation may be the law between the
Article 693. If the owner of the servient estate should have parties… If there is already a law or an ordinance
bound himself, upon the establishment of the easement, reclassifying the lot from residential to industrial, then wala
to bear the cost of the work required for the use and ng magagawa ang owner. In the case of Ortigas vs. Feati,
preservation thereof, he may free himself from this the zoning ordinance prevailed over the encumbrance
obligation by renouncing his property to the owner of the annotated in the title.
dominant estate. (599) From the FT of the case: Now, it is proper for
Tuason & Co., Inc. (thru Araneta, Inc.) to oppose the
Normally, under the law, it is the dominant owner who elimination of the condition from the certificate of title,
maintains the easement. Article 693 says that if the servient because, if it is erased, a purchaser who gets a new
owner offers to maintain the easement (martyr siya ba), if certificate of title without the annotation, will hold the lot
free from the encumbrance, and might build a factory
algene c.
165
there.
algene c.
166
As declared by Sec. 39 of Act 496 as amended,

College Campus, "in the event the La Vista Subdivision
"every purchaser of registered land ... shall hold the same
Association refuses VENDEE-‐MORTGAGORS (the
free from all encumbrances except those noted in said
petitioners) access to the other half portion of the road
certificate."
owned by said association."
The existence of a zoning ordinance prohibiting
And with regard to this provision, Maryknoll did
factories in the area is immaterial. The ordinance might be
not fail in its obligation to provide a road right of way inside
repealed at any time; and if so repealed, this prohibition
its campus. To support this point, the private respondent
would not be enforceable against new purchasers of the
submitted a manifestation showing that there are two (2)
land, who may be ignorant thereof. The same remark
roads located within the Maryknoll College Campus leading
applies to Rafaela's promise not to build a factory on the
from the petitioners' lot to Katipunan Avenue.
lot: new owners might not be bound.
This, petitioners (Rivera) did not refute. If indeed
the petitioners have been granted a road right of way, such
September 11, 2014
right should have been asserted against Maryknoll College
and not La Vista which is actually not a party to the
contract.
RIVERA vs. IAC: What happened here was this entire
LA VISTA vs. CA: Successors-‐in-‐interest are also benefited
property was purchased by PBC. This portion was bought
by the voluntary easement of right of way established by
by PBC and the entire property was bought by Ateneo de
both original parties – Tuason and PBC. But if you noticed,
Manila. Ateneo de Manila sold this portion to Mary Knoll
the ruling is different from the case of Rivera because of
which is now Miriam College. This portion that was not
the contract entered into by Rivera and Mary Knoll wherein
used by the school was converted to residential area so
it was stated that the easment of right of way, which is the
there were houses at the back of Mary Knoll. Rivera’s house
Mangyan road, can be used by Rivera in going in and out of
was somewhere there.
Katipunan. But the contract really shows that Mary Knoll
In truth and in fact, he could pass through the
will provide an easement of right of way and since there are
roads inside the campus of Mary Knoll to go to the
already roads inside the campus, the SC said that Rivera
subdivision but he wanted to pass through the Mangyan
doesn’t have a cause of action against La Vista. He can ask
road. La Vista Homeowners Association doesn’t want his to
Mary Knoll and in fact, there were already roads provided.
pass so he invoked his right against La Vista to be able to
From the FT of the case: The contractual easement
pass there based on the contract entered by him and Mary
of right-‐of-‐way having been confirmed, we find no reason
Knoll.
to delve on the issue concerning P.D. No. 957 which
But the SC said while it is stated in the contract
supposedly grants free access to any subdivision street to
that he is entitled to an easement of right of way, it doesn’t
government or public offices within the subdivision. In the
mean that this was the one (referring to Mangyan road).
instant case, the rights under the law have already been
Can you grant an easement of right of way to an exisiting
superseded by the voluntary easement of right-‐of-‐way.
easement already? So here, this is already existing in favor
of whoever.
UNISOURCE vs. CHUNG: Same principle laid down in the
With respect to the buyers of Mary Knoll, those
case of La Vista. Since the easement was voluntary, then it
leaving at the back of the school, the easement provided to
cannot be extinguished because there is another outlet to
them is the one inside the campus and not the ones
the highway. So necessity is not really material in voluntary
outside. This is a voluntary easement. The owners who
easements unless the parties stipulated in the agreeement
constituted the easement has the right to make certain
that “in case there is another opening available to the
provisions as to who can pass. Atty. Rivera and the other
servient owner, then the easement will be extinguished.” If
guy – they are not included to those originally intended by
there’s none, then it will not be extinguished by cessation
Tuason and PBC. This case is further discussed in the next
of the necessity.
case (La Vista vs. CA).
Even if it qualifies as a legal easement, it doesn’t
From the FT of the case: Maryknoll College granted
change the fact that the easement is also voluntary
a right of way over the one-‐half (1/2) portion of the
especially if there’s an annotation on the title of the
Mangyan Road only for utilities particularly electric,
servient estate.
telephone, water, sewerage, and drainage. It was a grant
From the FT of the case: As we have said, the
for specific purposes only. It did not grant a road right of
opening of an adequate outlet to a highway can extinguish
way over that particular portion of the road. Maryknoll
only legal or compulsory easements, not voluntary
however provided a road right of way inside the Maryknoll
algene c.
167
easements like in the case at bar. The fact that an

easement
algene c.
168
by grant may have also qualified as an easement of

The consideration being the liberality of
necessity does not detract from its permanency as a
the donor.
property right, which survives the termination of the
2. It is a mode of acquiring ownership
necessity.
Therefore, it does not require delivery or
A voluntary easement of right of way, like any
xxx to transfer ownership. However, we
other contract, could be extinguished only by mutual
have one exception here under Article
agreement or by renunciation of the owner of the
748.
dominant estate.
What we are talking right now is donation inter vivos –
donation made by a live donor to a live donee. But it’s not
that simple. The opposite of donation inter vivos is
donation mortis causa which is not governed by the
Title III -‐ Donation
provisions of donation but by the provisions on wills and
successions. We are focusing primarily on donation inter
We are now in Book 3. We will not discuss the first
vivos.
provisions of Book 3 because they are related to
Intellectual Property so we will go directly to Donations.
Essential characteristics of donation inter vivos:
1. Consent, subject matter and cause
Donation is a mode of acquiring ownership under Book 3
Because donation is a contract. Just like in
(Modes of Acquiring Ownership). You already took up
any contracts, there must be acceptance
Obligations and Contract, you already learned that sale is
from the parties (consent). What is the
not a mode of acquiring ownership. Ownership is
cause? The liberality of the donor. What is
transferred by delivery. However, in donation, the fact of
the subject matter? The property donated.
donation itself already transfers ownership so there is no
2. Formalities
need of delivery.
Sometimes, it just enough to give the
object. You don’t need to make up a form
Article 725. Donation is an act of liberality whereby a
and it is already a valid donation like giving
person disposes gratuitously of a thing or right in favor of
a chocolate to a kid. However, there are
another, who accepts it. (618a)
some donations like donation of real
properties that require certain formalities.
Donation is an act of liberality. Definitely, there is pure
3. Generally irrevocable
donation under Article 725. The donor does not expect
To prevent xxx givers. Alangan naman you
payment or compensation for his donation. His purpose is
give and the next day, bawiin mo. If that’s
just to give the thing or right. Of course, there must be
just a pen, that’s fine but what if you
acceptance.
donate a parcel of land? You cannot just
The requisites of donation are: get back what you donated. As a general
1. There is a decrease in the patrimony of the donor rule, donations inter vivos are irrevocable
If this is the patrimony of the donor and but there are grounds for revocation.
there is a donation made which decreases 4. Intent to benefit the donee (animus donandi)
it by 20% (100%-‐20%), then there is a 5. Resultant increase in the patrimony or assets of
corresponding increase in the patrimony the donor
(100%+20%) of the donee. 6. Necessity of acceptance by the donee
Note: The donor is the one who donates There is no valid donation without
and the donee is the one who receives. acceptance.
2. There is an increase in the patrimony of the donee 7. Upon acceptance, the donee becomes the
Refer to explanation in no. 1 absolute owner of the property donated
3. Intent to do an act of liberality There is an automatic transfer of
ownership.
General characteristics of donation:
1. It is an essentially gratuitous contract From the viewpoint of motive, purpose or cause, we have
four kinds of donation:
1. Simple – Article 725 (donation is an act of liberality
algene c.
169
of the donor)
algene c.
170
2. Remuneratory – Article 726 (when a person gives

always there. X is now very
to another a thing or right on account of the
successful. Of course, while the
latter's merits or of the services rendered by
yaya was with her, X paid her the
him to the donor)
proper salary so she doesn’t really
3. Modal or conditional – Article 726 (when the gift
owe her anything. She doesn’t
imposes upon the donee a burden which is less
have any monetary debts. But
than the value of the thing given)
because she is so happy with the
4. Onerous – is not really a donation because the
services of the yaya, she decided
burdens, charges or services asked for in return is
to donated a property. So the
equal to the thing donated. In reality, this is not
donation is on account of the
really a donation. Why it is placed here, I don’t
yaya’s (donee) merits or of the
know but this is the fourth kind of donation.
services rendered to her (donor)
Therefore, since it is not really a donation, the form
provided they do not constitute a
is not that of a donation but that of a contract. But
demandable debt.
we will see later how controversial this is.
So this is remuneratory – to
reward the donee.
From the time of taking effect, we have two kinds which
2. Modal or conditional (2nd part)
we already talked about:
“When the gift imposes upon the donee a
1. Inter vivos or In praesenti
burden which is less than the value of the
2. Mortis causa
thing given.”
Example: X says to Y, “I will give
From the viewpoint of occasion, we have:
you a car but you have to drive
1. Ordinary
me MWF only that is in exchange
2. Donation propter nuptias
of my donation.” So the gift
imposes a burden which is “to
As to the object of donated, we have:
drive the donor” but the value of
1. Corporeal property
the services is less than the value
a. Real
of the thing given.
b. Personal
2. Incorporeal property
Article 727. Illegal or impossible conditions in simple and
a. Alienable right
remuneratory donations shall be considered as not imposed. (n)
Article 726. When a person gives to another a thing or right on Example: Simple donation (Article 725) – X goes to his
account of the latter's merits or of the services inaanak’s birthday and gives an iPad. He gives it and he says
rendered by him to the donor, provided they do not “Pero kiss naman.” That is the condition for giving the iPad
constitute a demandable debt, or when the gift imposes which is just fine. But if he says “I will give you an iPad but
upon the donee a burden which is less than the value of the you have to fly to the roof of this building.” This condition is
thing given, there is also a donation. (619) impossible. Therefore, according to Article 727, it is
considered as not imposed.
We have here two kinds of donation:
1. Remuneratory (1st part) Will it make the donation void or nullify the donation?
“When a person gives to another a thing No. The donation is effective. Just ignore the
or right on account of the latter's merits impossible condition.
or of the services rendered by him to the
donor, provided they do not constitute a Example: X donates a car to Y. He says “I will donate it to
demandable debt.” you but you have to deliver drugs to C in Kidapawan.” That
Example: Ever since X was small, is an illegal condition so sabihin ni Y “Sorry I cannot do that
she already had a yaya. The yaya but I will accept the car.”
also became the yaya of her
children and her grandchildren. But take note that this provision is the exact opposite of a
So as she grows up, the yaya was contract. In contracts, the presence of the illegal or
algene c.
171
impossible condition renders the contract void. This is for

the DONOR, and as an act of liberality and
ordinary contracts, donation is also a contract but it is
generosity and considering further that
specific so it cannot apply to donations.
the DONEE is a grandson of the DONOR,
the DONOR hereby voluntarily and freely
CASES
gives, transfer[s] and conveys, by way of
donation unto said DONEE, his heirs,
ABELLA vs. CIR: To avoid payment of taxes – this is the
executors, administrators and assigns, all
reason for the donation to the campaign funds but what
the right, title and interest which the said
did the SC say? According to the SC, the donative intent is
DONOR has in the above described real
the creature of the mind. What are you intentions? Nobody
property, together with all the buildings
knows. It cannot be perceived except by the material and
and improvements found therein, free
tangible acts which manifest it.
from all lines [sic] and encumbrances and
Donative intent is a creature of the mind. It cannot
charges whatsoever xxx.
be perceived except by the material and tangible acts
There is nothing there that says na there is a need
which manifest its presence. This being the case, donative
for the payment and so it is a simple donation and not an
intent is presumed present when one gives a part of ones
onerous one.
patrimony to another without consideration. Donative
Why is it important to determine what kind of
intent is not negated when the person donating has other
donation do we have here? We will see that later when we
intentions, motives or purposes which do not contradict
go to formalities.
donative intent.
Campaign contributions are considered as
CITY OF ANGELES vs. CA: Just take note that mandatory
donations and therefore, subject to donor’s tax.
donations do not fall under our provisions (Civil Code) but
under the special laws in this case (PD 957 and PD 1216).
LENTFER vs. JURGEN WOLFF: The requirement under
Like under PD 957, if a developer develops a high end
Article 1238 is that the third person does not intend to be
subdivision, it also have to build a low end subdivision
reimbursed but that is not the case here.
which is 30% of the high-‐end area.
From the FT of the case: On this point, we find
The question is can these donations contain
petitioners' stance without merit. Article 1238 of the New
conditions? The answer is yes. There’s no prohibition to
Civil Code is not applicable in this case.Trying to apply Art.
make conditions for mandatory donations.
1238 to the instant case is like forcing a square peg into a
round hole. The absence of intention to be reimbursed, the
Article 728. Donations which are to take effect upon the
qualifying circumstance in Art. 1238, is negated by the facts
death of the donor partake of the nature of testamentary
of this case. Respondent's acts contradict any intention to
provisions, and shall be governed by the rules established
donate the properties to petitioner Moreño-‐Lentfer.
in the Title on Succession. (620)
LIQUEZ vs. CA: Is the donation valid? Was there an illegal or
impossible condition? The illegal condition here does not According to this article, donations which are to take effect
make the donation void. upon the death of the donor partake of the nature of
testamentary provisions, and shall be governed by the rules
LAGAZO vs. CA: Apparently, the donor donated a property established in the Title on Succession. So these donations
that was unpaid – meron pang kulang so he (donee) had to are not governed by the provisions that we taking now.
pay the installment. He is alleging that it’s like he bought
the property because nga of the payments so it’s onerous General features of Donations Mortis Causa:
daw and not pure. 1. They take effect upon the death of the donor
What did the SC say? You don’t look at the facts or The provision of the last will and
those that happened after the donation. You look at the testament will only take effect when the
intent of the donor. It is clear that the donor did not have donor dies. This is one of the differences
any intention to burden or charge petitioner as the donee. of DIV and DMC. (DIV – generally
The words in the deed are in fact typical of a pure revocable, DMC – revocable so donor may
donation. change it everyday)
What did the deed say? The formalities of a will are more
That for and in consideration of the love stringent that that of donation.
and affection which the DONEE inspires in
algene c.
172
2. They partake of the nature of testamentary

provisions
This is what we call donation in praesenti. What does it
3. They shall be governed by the rules established in
mean? It will take effect during the lifetime of the donor
Title on Succession
but the property will be physically delivered only after the
donor’s death. Does it matter? No because it is not the
We have many cases and jurisprudence telling us the
delivery that transfers ownership but the donation itself –
characteristics of donations mortis causa. So what will we
from the moment of acceptance (perfection of donation).
do? We have to look at the Deed and check what the donor
says in it. So what are the distinguishing characteristics of
CASES
DMV.
 It conveys no title or ownership to the donee
DEL ROSARIO vs. FERRER: A donor who executes a deed of
before the death of the donor or that the donor
donation does not know the features of DIV and DMC so
should retain the ownerhsip (full or naked) and
most of the times, you will see a provision there that will
control of the property while alive
point out the inter vivos features and then other provisions
 That before the donor’s death, the donation
will make it seem like what was executed was a donation
should be revocable by the donor at will (but
mortis causa.
revocability may be provided for indirectly by
If you look at what the donor said:
means of a reserved power in the donor to dispose
o It is our will that this Donation Mortis
of the properties conveyed)
Causa shall be irrevocable (Inter vivos
 That the donation should be void if the donor
indication) and shall be respected by the
should survive the donee
surviving spouse.
o It is our further will that any one surviving
Article 729. When the donor intends that the donation
spouse reserves the right, ownership,
shall take effect during the lifetime of the donor, though
possession and administration (Mortis
the property shall not be delivered till after the donor's
causa indication) of this property herein
death, this shall be a donation inter vivos. The fruits of the
donated and accepted (Inter vivos
property from the time of the acceptance of the donation,
indication) and this Disposition and
shall pertain to the donee, unless the donor provides
Donation shall be operative and effective
otherwise. (n)
upon the death of the DONORS (Mortis
causa indication).
When the donor intends that the donation shall take effect
That is why it is really difficult to determine what
during the lifetime of the donor, though the property shall
kind of donation was given because of the provisions in the
not be delivered till after the donor's death, this shall be a
deed laid down by the donor. So what now? It is the SC that
donation inter vivos.
will determine. Why did the SC say that the donation is inter
Example: Mother will say “Anak, I will donate this
vivos even if there are three indications for the DMC? Well,
property to you.” So the donation already took
they are the SC. Diba?
effect. But she says “Anak, I will be the one who
will occupy the land and enjoy the fruits.” It is still a From the FT of the case: The Court thus said in
donation inter vivos because the important thing is Austria-‐Magat that the express "irrevocability" of the
that there is already a transfer of ownership. There donation is the "distinctive standard that identifies the
is no need for the donor to die because the document as a donation inter vivos." Here, the donors
transfer of ownership occurs. plainly said that it is "our will that this Donation Mortis
Causa shall be irrevocable and shall be respected by the
What about the fruits of the property from the time of surviving spouse." The intent to make the donation
donation? irrevocable becomes even clearer by the proviso that a
General rule: Fruits shall pertain to the donee surviving donor shall respect the irrevocability of the
Exception: The donor provides otherwise donation. Consequently, the donation was in reality a
If the donor only provides for possession donation inter vivos.
and use lang, the fruits under Article 729 The donors in this case of course reserved the
will belong to the donor. If the donor "right, ownership, possession, and administration of the
provides for the usufruct to the donee, property" and made the donation operative upon their
then the fruits will belong to the donee. death. But this Court has consistently held that such
reservation (reddendum) in the context of an irrevocable
algene c.
173
donation simply means that the donors parted with

their
algene c.
174
naked title, maintaining only beneficial ownership of the

1945. The issue here is whether or not the donation is
donated property while they lived.
mortis causa or inter vivos.
Notably, the three donees signed their acceptance
There was a donation made in favor of Salud and
of the donation, which acceptance the deed required. This
the donation was accepted by her. It was inter vivos
Court has held that an acceptance clause indicates that the
because of all those details – that it was given to her
donation is inter vivos, since acceptance is a requirement
because of the wish of the original owner, that she
only for such kind of donations. Donations mortis causa,
accepted it in a public instrument. The donation was made
being in the form of a will, need not be accepted by the
in 1946. Did she possess the land when she received it? In
donee during the donor’s lifetime.
1951, she transferred possession of the land to her mother.
Since the donation in this case was one made inter
Then the mother and brother stayed there from 1951. It was
vivos, it was immediately operative and final. The reason is
Claudio, the brother, who paid for the taxes.
that such kind of donation is deemed perfected from the
In 1956, Juana, the mother, sold the land to
moment the donor learned of the donee’s acceptance of
Claudio. In 1958, he registered the land in his name. Was
the donation. The acceptance makes the donee the
that proper? Did he acquire ownership of the land through
absolute owner of the property donated.
prescription? First of all, his possession was not adverse
because Salud merely allowed them to stay in the land. He
VILLANUEVA vs. BRANOCO: Our main issue here is whether
or not the donation is mortis causa or inter vivos. What did knew that the property belong to Salud. Was he in good
faith? No. So the requirement is 30 years. It was only in
the donor say in the deed of donation? Why did she donate?
She has a husband who did not treat her well and left her. It 1951-‐ 1958, so 7 years pa lang.
was the donee who took care of her so she decided to My point here is in unregistered land, even if the
donate to the donee. That is the sign of remuneratory. donee allows somebody else to possess the property and
What did she say? the required period for OCENPO is present, even if the
o xxx because of the love and affection donation is valid, she will still lose ownership of the land
through extinctive possession. But in this case, since the
which I feel [for] her, I have one parcel of
donation is inter vivos, she already owned the property
land located at Sitio Amambajag, Culaba,
even if she did not register it.
Leyte bearing Tax Decl. No. 1878 declared
According to the SC: There is nothing in this
in the name of Alvegia Rodrigo, I give
(devise) said land in favor of EUFRACIA instrument to suggest that the donation was to take effect
upon the death of the donors as to make it a donation
RODRIGUEZ, her heirs, successors, and
assigns together with all the mortis causa, as urged by the petitioners. The donation
improvements existing thereon (Inter became effective upon acceptance by Salud except that, in
vivos indication) obedience to her mother's request, she chose not to
register the land in the meantime and to allow her mother
o It is now in the possession of EUFRACIA
to enjoy its fruits. What was deferred was not its
RODRIGUEZ since May 21, 1962 in the
effectivity but only its enjoyment by Salud. Registration
concept of an owner, but the Deed of
was not necessary to make the donation a binding
Donation or that ownership be vested on
commitment insofar as the donors and the donee were
her upon my demise. (Mortis causa
concerned.
indication)
o xxx if the herein Donee predeceases me,
September 15, 2014
the [Property] will not be reverted to the
Donor, but will be inherited by the heirs of
SPOUSES GESTOPA vs. CA: There was a first donation
x x x Rodriguez (Inter vivos indication)
which is undeniably a donation mortis causa. Did the
So there are more provisions indicating that it is inter vivos
spouses make a second donation? Yes. Since the first
than mortis causa, therefore, according to the SC, the
donation was mortis causa, it was automatically revoked
donation is inter vivos. What Rodrigo reserved for herself
when the second donation was made which was a donation
was only the beneficial title to the Property, evident from
inter vivos. It was indicated that indeed, it was a donation
Rodriguez’s undertaking to "give one [half] xxx of the
inter vivos.
produce of the land to Apoy Alve during her lifetime."
So the sale of the spouses of the property was void
PARAJILLO vs. IAC: This involves an unregistered land. because they already validly donated it inter vivos so they
What is the date of the deed of donation? 1946. He died in no longer own the property. DIV cannot be revoked unlike
DMC.
algene c.
175
MAGLASANG vs. HEIRS OF CABATINGAN: That the

So we have already discussed enough cases. Let’s now go
donations were made "in consideration of the love and
to the distinctions:
affection of the donor" does not qualify the donations as
inter vivos because transfers mortis causa may also be
Inter vivos Mortis Causa
made for the same reason.
Time it takes During the After the death of
From the FT of the case: In the present case, the
effect lifetime of the the donor
nature of the donations as mortis causa is confirmed by the
donor
fact that the donations do not contain any clear provision
Formalities Law on Donations Law of Wills and
that intends to pass proprietary rights to petitioners prior
(If simple; if Codicils
to Cabatingan's death. The phrase "to become effective
onerous – Law on
upon the death of the DONOR" admits of no other
Contracts)
interpretation but that Cabatingan did not intend to
Revocability Not Revocable Revocable
transfer the ownership of the properties to petitioners
Exc: When (Anytime while
during her lifetime. Petitioners themselves expressly
allowed by law the donor is alive)
confirmed the donations as mortis causa in the following
based on the
Acceptance and Attestation clauses, uniformly found in the
grounds
subject deeds of donation, to wit:
When legitime is Preferred over Reduced ahead of
"That the DONEE does hereby accept the
impaired donations mortis donations inter
foregoing donation mortis causa under the terms
causa vivos since it is
and conditions set forth therein, and avail herself
(You will really a legacy or
of this occasion to express her profound gratitude
understand this devise
for the kindness and generosity of the DONOR."
when you reach
xxx
Succession.)
"SIGNED by the above-‐named DONOR and DONEE
at the foot of this Deed of Donation mortis causa,
which consists of two (2) pages x x x."
Whether the YES No
donee can -‐ Ownership is -‐ Ownership is
GANUELAS vs CAWED: The SC here gives emphasis on the
dispose of the transferred only transferred
third characteristic: That the donation should be void if the
donation immediately, upon the donor’s
donor should survive the donee or if the donee dies before
although certain death
the donor, then the donation does not take effect.
reservations such
It was explained very well why the donation was
as usufruct may
considered as mortis causa.
be made
From the FT of the case: If the donation is made in
contemplation of the donor's death, meaning that the full Acceptance Donation must be Acceptance must
or naked ownership of the donated properties will pass to accepted during be done only
the donee only because of the donor's death, then it is at the lifetime of the after the donor’s
donor death
that time that the donation takes effect, and it is a donation
mortis causa which should be embodied in a last will and
testament. Article 730. The fixing of an event or the imposition of a
As stated in a long line of cases, one of the suspensive condition, which may take place beyond the
decisive characteristics of a donation mortis causa is that natural expectation of life of the donor, does not
the transfer should be considered void if the donor should destroy the nature of the act as a donation inter vivos,
survive the donee. unless a contrary intention appears. (n)
The deed contains an attestation clause expressly
confirming the donation as mortis causa: Example: X says “I will donate this car to you on the
SIGNED by the above-‐named donor, Celestina condition that you become a lawyer or that you graduate in
Ganuelas, at the foot of this deed of donation law school.” This is a suspensive condition. You already
mortis causa, consisting of two (2) pages xxx know naman the distinction between suspensive and
Note: The distinguishing characteristics of DMC resolutory, right?
were enumerated here.
algene c.
176
Even if the donor is still alive when you graduate in law

How about onerous donations? What do we mean by
school, it will take effect already. It is still inter vivos unless
onerous? If the burden is equal to the thing donated.
a contrary intention appears.
Example: I’ll give you a car worth P2M. Give me a
flying lessons worth P2M. This is onerous and
Article 731. When a person donates something, subject to therefore, the formality will that be of a contract.
the resolutory condition of the donor's survival, there is a
donation inter vivos. (n) Article 734. The donation is perfected from the moment
the donor knows of the acceptance by the donee. (623)
The example given here is A was about to undergo a liver
transplant. Before his operation, A donated a land to C on Of course, today it’s very easy to know acceptance if it is a
the condition that if A survives the operation, B’s simple donation. If it is not, then we have to follow certain
ownership of the land will revert back to A. Is this a formalities under Article 749 if it is a parcel of land.
donation inter vivos? Yes because it takes effect
automatically by the donation itself. But if A survives, it will I think this should be amended. What do they mean?
revert back. Acceptance or knowledge of the acceptance? Just like in
the case of Lagazo, Lola donated a parcel of land to Lagazo.
Article 732. Donations which are to take effect inter vivos Lola is in Canada. Acceptance, under Article 749, needs
shall be governed by the general provisions on contracts formalities. But what if nag-‐facetime sila and Lagazo said
and obligations in all that is not determined in this Title. na giaccept na niya? Is that enough? For me, yes. Pero wala
(621) pa kasi to before when the Civil Code was enacted.
The primary law in donations inter vivos is the Book 3 Anyway, this is the theory of cognition. A donation is never
(Modes of Acquiring Ownership), Chapter 1, of the Civil enough if it is one-‐sided. There must be an acceptance of
Code. We have the suppletory application of the provisions the donee and the donor must have knowledge of the
of ObliCon because donations are also contracts. acceptance.
Article 733. Donations with an onerous cause shall be governed by According to Paras, when must acceptance of the donation
the rules on contracts and remuneratory donations by the be made? Obviously, when both the donor and donee are
provisions of the present Title as regards that portion which still alive. It must be made during the lifetime of the donee.
exceeds the value of the burden
imposed. (622) What can the donor do prior the knowledge of the
acceptance of the donee? He can sell it because the
Remember our discussion in Articles 725 and 726? donation has not yet been perfected. Under Article 749, we
 If it’s a pure donation, the donor did not expect for will learn that the donation and acceptance may be made in
anything in return, then the formalities is that of one document.
donation.
 It says here: remuneratory donations by the Let’s go now to the next topic – Persons who may give or
provisions of the present Title as regards that receive donations.
portion which exceeds the value of the burden
imposed. Article 735. All persons who may contract and dispose of
Pero diba remuneratory is to reward? Baka their property may make a donation. (624)
ang gina-‐mean dito is modal or conditional
donation because it is the one with the What age can a person enter into a contract in the
burden. Philippines? 18 years of age. Can a child make a donation?
Example: The car donated is Yes. Basically, all persons (not necessarily only those who
worth P2M and the cost of driving are 18 and above) can contract donation.
lessons is P50,000, as regards the
P1,950,000 – the formalities will What if a person is incapacitated to contract or to donate?
be that of donation, the P50,000 Then the donation is voidable (valid until annulled).
– the formalities of the contract.
This what Article 733 means.
algene c.
177
Can a child donate a chocolate bar to his friend? Of course

Yes. If you base it with Article 737 – The donor's
yes. That donation is valid. Who can annul it? Siguro yung
capacity shall be determined as of the time of the making
nag-‐bigay sa child ang mag-‐stop.
of the donation.
But Paras is insisting that the making should mean
Those who are of unsound mind, can they donate? Yes but
perfection. When is donation perfected? Upon the
voidable ang donation.
knowledge of the donor of the donee’s acceptance. Here,
the lolo never found out of the donation because he was
Voidable donations:
already of unsound mind so it can never be perfected.
 Those entered into by minors.
By adding this provision, medyo naging magulo.
 Those entered by persons with unsound mind.
But anyway, this is the provision. According to Paras, the
 Those whose consent was vitiated.
making must be interpreted to mean the perfection of the
donation. Just take note of that. Of course, I will not ask you
Void donations:
something that I find confusing myself. I’m just discussing
 Guardians
this for the bar. Check the comments of the other authors.
A guardian has no power to dispose the
property of the ward.
We already looked at who may make a donation.
 Trustees
Practically, everybody. It’s just that there are some
Even if the property is in the name of the
limitations. Don’t forget your Family Code:
trustee, a donation made by him is void.
 There is a restriction for the husband in donating
Basis: Article 736
the conjugal property but only for moderate
donations
Article 736. Guardians and trustees cannot donate the property
 He can donate only his capital property/ies
entrusted to them. (n)
 He can donate to children and to third persons but
he cannot donate to his wife
Let’s say X here is a child (age: 16 years old). She is a child
 Donation between spouses = void (also applies to
star and she has a guardian. The guardian donated some of
common law spouses)
her properties. Can X, the child, revoke the donation?
Atty. S: This is not our topic ha. This is only to add for those
No because the action is not to revoke but to have
who are incapacitated to donate.
it declared null and void. This is a donation inter vivos which
is null and void.
Art. 98. Neither spouse may donate any
community property without the consent of the
Article 737. The donor's capacity shall be determined as of
other. However, either spouse may, without the
the time of the making of the donation. (n)
consent of the other, make moderate donations
from the community property for charity or on
This is what I find very confusing. It is very clear and short
occasions of family rejoicing or family distress. (n)
but the authors have different comments about it.
Article 738. All those who are not specially disqualified by
According to Paras, “making” means “perfection.” If I am
law therefor may accept donations. (625)
the donor and you are the donee, then we are in front of
each other, walang problema. Let’s say sometimes I’m of
unsound mind and I donate something to you, right now, Who may accept? All those who are not specifically
during the donation and acceptance, I am of sound mind so disqualified by law.
the donation is valid because I’m capacitated.
Who cannot receive donations? Those enumerated under
What if A receives a donation from his grandfather in Article 739.
Baguio. Lolo is old so medyo senile-‐senile na. When he
executed the donation, he was of sound mind. May lawyer Who may not accept? (Added)
na, the lolo signed and everything was prepared. A received  Husband and wife
the deed of donation and he accepted it but dun sa place  Alien religious organizations
ng lolo niya, walang wifi. Pag-‐dating ng acceptance ni A,
the lolo is already demented. Is it a valid donation? Article 739. The following donations shall be void:
(1) Those made between persons who were guilty
of adultery or concubinage at the time of the donation;
algene c.
178
(2) Those made between persons found guilty of second sign for it’s a blackmail. The
the same criminal offense, in consideration thereof; consent here is vitiated.
(3) Those made to a public officer or his wife,
descendants and ascendants, by reason of his office. 3. Those made to a public officer or his wife,
In the case referred to in No. 1, the action for descendants and ascendants, by reason of his
declaration of nullity may be brought by the spouse of the office.
donor or donee; and the guilt of the donor and donee may Of course, if I know someone from the
be proved by preponderance of evidence in the same City Council. It’s her birthday and I give her
action. (n) a gift, is it void? Of course not kasi kakilala
ko siya. How about si Vice Mayor? I don’t
Article 739 enumerates the void donations by reason of know him and I give his son a birthday gift,
public policy. They are null and void from the beginning and that falls under Article 739. I don’t know
therefore, the action is declaration for nullity. Again, this him diba? So I’m giving the gift kasi by
does not talk about revocation. reason of his office.
Take note that this article is not
1. Those made between persons who were guilty of encompassing. It does not apply all the
adultery or concubinage at the time of the times. The donation must be by reason of
donation his office. Even Christmas gifts fall under
Example: Husband donates a car to his this category. If the donor would not have
mistress. This is a void donation by reason given the gift had the donee not been
of public policy. occupying public office.
The action for declaration of the Relatives not enumerated under
nullity may be brought by the spouse of the law can receive donations. Who are
the donor. The guilt of the donor may be those prohibited? (Direct line)
proved by preponderance of evidence. In 1. Wife
other words, under this item, the husband 2. Descendants
and the mistress need not be found by the 3. Ascendants
court of law as guilty of adultery and But these provisions does not
concubinage. It is enough that in the same prevent the public officer from being a
complaint, it is proven by preponderance donor.
of evidence. No need na found guilty sila
beyond reasonable doubt. (Read last par.) Article 740. Incapacity to succeed by will shall be
applicable to donations inter vivos. (n)
2. Those made between persons found guilty of the
same criminal offense, in consideration thereof This is a very short provision but this is related to
Example: Wife hires killer to kill her succession. If a person is incapacitated to succeed under
husband. She says to the killer “I will give Article 740, he is also incapacitated to become a donee.
you a house and lot if you kill my
husband.” That donation is void. It is made It speaks of donations by reason of unworthiness. What
between persons found guilty of the same are the pertinent provisions here? Articles 1032 and 1027.
criminal offense.
Remember ha na under number 2, Art. 1027. The following are incapable of
the wife and the killer must be found succeeding:
guilty. The wife of parricide, the killer of (1) The priest who heard the confession of
murder or homicide as the case may be. the testator during his last illness, or the minister
They must be convicted of the crime. of the gospel who extended spiritual aid to him
during the same period;
Illustration: RP is a newspaper columnists. (2) The relatives of such priest or minister
RP knows that FG is having an affair with of the gospel within the fourth degree, the church,
her secretary. FG gives RP P1M so he will order, chapter, community, organization, or
not write about the story. What is that institution to which such priest or minister may
P1M? It is voidable. It is not under the belong;
algene c.
179
(3) A guardian with respect to

(8) Any person who falsifies or forges a
testamentary dispositions given by a ward in his
supposed will of the decedent. (756, 673, 674a)
favor before the final accounts of the guardianship
Note: Change “testator” to “donor”; “will” to
have been approved, even if the testator should
“deed of donation”
die after the approval thereof; nevertheless, any
provision made by the ward in favor of the
When we talk of incapacity, there are two kinds:
guardian when the latter is his ascendant,
1. Absolute incapacity – where in no case can there
descendant, brother, sister, or spouse, shall be
be a transmission of donation just like in the case
valid;
of an abortive infant
(4) Any attesting witness to the execution
2. Relative incapacity – those provided under Articles
of a will, the spouse, parents, or children, or any
1032 and 1027 where under certain conditions, a
one claiming under such witness, spouse, parents,
person cannot be a donee of a particular person
or children;
 1027 – relative incapacity by reason of
(5) Any physician, surgeon, nurse, health
undue influence
officer or druggist who took care of the testator
 Like the priest who heard the
during his last illness;
confession of the testator during
(6) Individuals, associations and
his last illness. Who cannot be a
corporations not permitted by law to inherit. (745,
donee? The priest. He cannot
752, 753, 754a)
receive from the person who
Note: “Succeeding” replaced “receiving
made the confession. In relation
donations”
to the person only.
 Most of the times, the guardians
Art. 1032. The following are incapable of
of the child are the parents. Pero
succeeding by reason of unworthiness:
there are cases na appointed ang
(1) Parents who have abandoned their
guardians just like when the
children or induced their daughters to lead a
parents of the child die. What if
corrupt or immoral life, or attempted against their
the child donates everything to
virtue;
the guardian? That donation is
(2) Any person who has been convicted of
void. There is a presumption of
an attempt against the life of the testator, his or
undue influence. Baka inutusan
her spouse, descendants, or ascendants;
niya ang child to donate it to him.
(3) Any person who has accused the
An exception is if the guardian is
testator of a crime for which the law prescribes
the lola, the sister, brother, etc. -‐
imprisonment for six years or more, if the
ascendant, descendant, brother,
accusation has been found groundless;
sister, or spouse.
(4) Any heir of full age who, having
 Check the enumeration under the
knowledge of the violent death of the testator,
provision.
should fail to report it to an officer of the law
within a month, unless the authorities have already
September 16, 2014
taken action; this prohibition shall not apply to
cases wherein, according to law, there is no
So we are discussing relative incapacity. We have certain
obligation to make an accusation;
provisions like Articles 1027 and 1032. Again, Article 1027
(5) Any person convicted of adultery or
talks about incapacity by reason of undue influence.
concubinage with the spouse of the testator;
(6) Any person who by fraud, violence,
 1032 – refers to the incapacity of the donee
intimidation, or undue influence should cause the
because he is unworthy to receive donation
testator to make a will or to change one already
from a particular donor
made;
 We have parents who have
(7) Any person who by the same means
abandoned their children. So only
prevents another from making a will, or from
in relation to their children… if
revoking one already made, or who supplants,
the child is the donor.
conceals, or alters the latter's will;
 This provision provides for the
algene c.
180
grounds of the unworthiness

of
algene c.
181
the heir which also applies to

So donations made to incapacitated persons shall be void,
donation.
though simulated under the guise of another contract or
through a person who is interposed. Like husband cannot
Note: Just familiarize the cited provisions.
donate to mistress nor to the sister of the mistress because
the latter is made through a person who is interposed.
We looked at yesterday whether minors or insane persons
can donate. What about receive? Can they receive? Look at
Can the husband instead sell the property to the mistress?
Article 741.
No. It is under a guise of another contract. Again, Article
743 does not refer to insane or minor but to those who are
Article 741. Minors and others who cannot enter into a
not allowed as donee.
contract may become donees but acceptance shall be done
through their parents or legal representatives. (626a)
Did you already discuss double sales in your Sales? In our
discussion under possession, we also discussed the rules on
If acceptance requires certain formalities, it shall be done
double possession, diba? Now, for donation, we have
through their parents of legal representatives. But there
Article 744. The related provision is Aritcle 1544.
are times when mere thank you is already enough. It is
tantamount to a valid acceptance from the minor.
Article 744. Donations of the same thing to two or more
different donees shall be governed by the provisions
Example: If the minor receives P100 for her birthday and
concerning the sale of the same thing to two or more
she says “Thank you!”, that is enough. No need for the
different persons. (n)
parents to accept from her.
When we go to the formalities, we will see later that there What are the rules under Article 1544?
are donations that require written acceptance. Under this,  If there are two donees and the subject property is
the parents or legal representatives must accept. If the a movable property, who is the owner of the thing
donation is onerous or conditional, dili pwede ang minor donated? The person who may have first taken
mag-‐accept because there are burdens imposed on the possession thereof in good faith.
child. The child cannot accept by himself. Of course there is only one thing donated
only one will be in possession. So ang
Article 742. Donations made to conceived and unborn preferred is the one who is in possession
children may be accepted by those persons who would of the property.
legally represent them if they were already born. (627)  If the subject property is immovable property, the
ownership shall belong to the person acquiring it
Donations can be made to the children under the stomach who in good faith first recorded it in the Registry
of the mothers. Who may receive? It says here: those of Property.
persons who would legally represent them if they were  If no recording was made, the donee preferred is
the one who in good faith was first in possession.
already born. Of course, the parents if they are alive or
 If no one is in possession, the one who presents
others who may legally represent them like the trustees,
the oldest title.
guardians, etc.
Art. 1544. If the same thing should have been sold to

You have to relate this with Article 40 of the Family Code
different vendees, the ownership shall be transferred
for a child to acquire juridical personality. Relate this Article
to the person who may have first taken possession
to that.
thereof in good faith, if it should be movable property.
Should it be immovable property, the ownership
Article 743. Donations made to incapacitated persons shall
shall belong to the person acquiring it who in good
be void, though simulated under the guise of another
faith first recorded it in the Registry of Property.
contract or through a person who is interposed. (628)
Should there be no inscription, the ownership shall
This does not refer to the incapacitated like the insane pertain to the person who in good faith was first in the
persons. This refers to void donations – Articles 739 and possession; and, in the absence thereof, to the person
740. who presents the oldest title, provided there is good
faith. (1473)
algene c.
182
One thing you have to remember under Articles 744 and

exercising sufficient judgment in ceding her share to
1544 is that they have no retroactive effect. They also do
respondent Leopoldo.
not apply when one is donation and the other is sale.
As testified by the notary public who notarized the
Deed of Donation, Felisa confirmed to him her intention to
If X donated his car to A and one month later, he donated
donate her share in Lot No. 653 to Leopoldo. He stressed
the same car to B. You apply Article 1544 (in relation to Art.
that though the donor was old, she was of sound mind and
744) as to who is the legal donee there.
could talk sensibly. Significantly, there is nothing in the
record that discloses even an attempt by petitioners to
If A donated his car to B and one month later, he sold the
rebut said declaration of the notary public. Clearly,
same car to C, then Article 1544 is not applicable. What
therefore, the courts below did not err in sustaining the
should apply? You look at if the donation was valid and
validity of the deed of donation.
what kind of donation it is. If it is mortis causa, then the sale
can take effect. Even that property is mentioned in the will
CATALAN vs. BASA: What if he was not of unsound mind
and the testator decides to sell it, that is his business. He
when he donated? What is the status of the donation?
has the right to dispose. If it is inter vivos and it’s valid, then
Voidable. The incapacity in this case refers to whether or
the donation will be the valid contract and the sale is
not the donor was of unsound mind not Article 739.
already null and void because there was nothing to sell
From the FT of the case: It is interesting to note that
anymore.
the petitioners questioned Feliciano’s capacity at the time
he donated the property, yet did not see fit to question his
So you look at the validity of the first contract. If it is valid,
mental competence when he entered into a contract of
then that will be preferred. Article 1544 only applies when
marriage with Corazon Cerezo or when he executed deeds
there is double sale. Article 744 applies only when there is
of donation of his other properties in their favor.
double donation.
The presumption that Feliciano remained
competent to execute contracts, despite his illness, is
CASES
bolstered by the existence of these other contracts.
Competency and freedom from undue influence, shown to
CALICDAN vs. CENDENA: Here, the donation was not valid.
have existed in the other acts done or contracts executed,
The person who donated the property did not have the
are presumed to continue until the contrary is shown.
capacity to dispose it because the property does not
Needless to state, since the donation was valid,
belong to her but to her children being the heirs.
Mercedes had the right to sell the property to whomever
Is she considered a part heir here? No since the
she chose.
applicable law was the old law. Wala pa yung Family Code.
However, the buyer (Silverio Cendena) thought
HEIRS OF MARAMAG vs. DE GUZMAN: The question here is:
that she was the owner and she donated it in good faith or
For example, the proceeds amounted to P4M and the
bad faith (may be she know that she isn’t the owner) but it
premiums paid amounted to P400,000. In our case, there
doesn’t matter because from 1947 until 1992, he was in
were three children and Eva. They are supposed to get P1M
possession of the property (OCEAN). Therefore, even
each from the P4M. Let’s set aside Eva’s share because that
though he did not acquire ownership of the property
is void under the Insurance Code – she cannot be a
through donation he still acquired ownership through
beneficiary.
prescription.
With respect to the P1M of the three children, is
there a donation from the father? He assigned the children
HEIRS OF SEVILLA vs. SEVILLA: When we talk of the
as beneficiaries, diba? Let’s look at the 3M here kasi nga
capacity here, what was the capacity being questioned
void ang pag-‐assign kay Eva.
here? The capacity to give consent to the donation.
What are the three elements of a donation?
Did the SC here discuss “making” in relation to
 Increase in the patrimony of the donee
perfection? No. This is a 2003 case and the issue here is the
 Decrease in the partrimony of the donor
capacity of the donor but the SC did not discuss what do
you mean by making unlike in the book of Paras where he  Intent to donate
said that it shall be considered as perfection of the My question is very simple: Is there a donation to the
donation. children? How much was the decrease from the patrimony
From the FT of the case: Moreover, petitioners of the donor? Only P400,000 (premiums paid). Is there a
failed to show proof why Felisa should be held incapable of corresponding increase in the patrimony of the donee?
algene c.
183
Are insurance proceeds considered donations?

of the donor and of the donee. (n)
Take note that insurance proceeds do not come from the
donor himself but from the insurance company. So you
When should be acceptance be made? During the lifetime
cannot consider that as donation because that decrease in
of both the donor and the donee.
the patrimony of the donor is not the same increase in the
patrimony of the donee.
Now, let’s go to the formalities.
The donation is limited to the corresponding
amount. If the donor actually shelled out P400,000
Article 748. The donation of a movable may be made orally
insurance premium, that is the extent of the donation,
or in writing.
legally speaking. But the P2.6M is not. Therefore, as you will
An oral donation requires the simultaneous
see later when you reach succession, that is not subject to
delivery of the thing or of the document representing the
collation. It is not an advance inheritance. Donations kasi
right donated.
for parents or childrens are considered as advance
If the value of the personal property donated
inheritance. So when somebody dies, everything is
exceeds five thousand pesos, the donation and the
computed even the donations previously given.
acceptance shall be made in writing. Otherwise, the
In this case, the legitimate children of Loreto, their
donation shall be void. (632a)
argument is wrong. They are not deprived of their legitime
because the bulk of the proceeds are not considered as a
For movables, the donation may be made:
donation and not included in the computation of their
1. Orally or
estate. Because that portion of the proceeds for Eva is void,
2. In writing
it cannot go to the estate of Loreto. It will go to the other
beneficiaries. This is what you call as accretion in This is when delivery is required. If you make an
succession. That is how this case was explained. You will oral donation, it requires the simultaneous delivery of the
understand this better when we take up all the other thing or of the document representing the thing donated.
topics.
Let’s say I will donate a cellphone to X. If the cellphone is
not delivered to her, then there’s no donation. I have to
September 17, 2014
give it to her. If ever I don’t have the cellphone with me, I
can give her the receipt and siya nalang mag-‐bili.
Article 745. The donee must accept the donation
personally, or through an authorized person with a special
If the value of the personal property exceeds P5,000, the
power for the purpose, or with a general and sufficient
donation and acceptance must both be in writing. Non-‐
power; otherwise, the donation shall be void. (630)
compliance = void donation because of the formalities.
How should a donation be accepted? It depends on the
If the ninong gives and iPad to his inaanak, if there’s a little
formalities. Personal acceptance is sufficient in some
card there, that’s already sufficient. The inaanak must also
donations. But if the capacity to act is required, it should be
send a “Thank you” note because of the formalities under
through an authorized person.
the law. But normally, this doesn’t happen. Who’s gonna
question that anyway?
How do you authorize a person? Execute a special power of
attorney.
Illustration: In January 1, 2000, A made a donation to B of
P4,000 which B may collect to BPI. B received the letter but
Although Article 745 speaks of “with a special power for
did not answer. On January xx, he went to BPI and
the purpose, or with a general and sufficient power,” a
collected the money. Is the donation valid?
general power of attorney is no longer accepted nowadays.
Yes. The donation is less than P5,000. Even if the
The power must be specified. If there is no SPA, then the
donation was in writing, the acceptance can be made by
donation is considered as void.
one’s acts. The fact that B went to BPI and took the money,
that is already tantamount to acceptance.
Whenever you see a donation which is not accepted by the
donee himself or by another person through an SPA, what
RULES FOR MOVABLES
is the action? To declare it null and void, not revocation.
 P5,000 or less – may be orally or in writing;
express or implied
Article 746. Acceptance must be made during the lifetime
algene c.
184
 More than P5,000 – must be in writing

-‐ In a separate document
(both donation and acceptance)
 Acceptance made in a separate document:
 If orally made (P5,000 or less) – there
1. Donor shall be notified (send the
must be simultaneous delivery of:
document of acceptance + another
-‐ The thing donated OR
authenticated document for
-‐ The document representing it
notification)
2. There must be notation in both
Article 749. In order that the donation of an immovable may be documents (refer to the note at the
valid, it must be made in a public document, end)
specifying therein the property donated and the value of
the charges which the donee must satisfy. Article 747. Persons who accept donations in
The acceptance may be made in the same deed of representation of others who may not do so by
donation or in a separate public document, but it shall not take themselves, shall be obliged to make the notification and
effect unless it is done during the lifetime of the donor. notation of which article 749 speaks. (631)
If the acceptance is made in a separate instrument, the donor
shall be notified thereof in an
Yung may SPA diba? Let’s say that the acceptance was not
authentic form, and this step shall be
made by the donee but an agent with SPA. Aside from
instruments. (633)
noted in both satisfying the requirements under Article 749, there must
also be a notation in the documents that:
 the acceptance was made in a separate instrument
For immovables, we have two kinds of formalities:  the acceptance was made by an authorized person
1. Donation and the acceptance in one document and with SPA
the notarization  that the donor has been notified that the
– very simple; signed by the donor, donee acceptance was made by a person with SPA
and notary public; the property donated is
specified This is the additional requirement if the acceptance is made
through someone with special power. That’s the
2. Donation is in one instrument (acknowledged by procedure.
the donor and notarized by the notary public) and
the acceptance is in a different instrument What if the donation of the immovable is in a private
Let’s say the donee is in Baguio. He has to document?
execute another document. He must It is null and void unless it is a donation propter
accept and sign it. It must be notarized. nuptias. Donation propter nuptias is not governed by the
There is an additional provisions on donation but of the Family Code. There’s a
requirement: the donor shall be notified special procedure for that.
thereof in an authentic form, and this step
shall be noted in both instruments. Neither party may compel the other to execute a public
instruement. It cannot be ratified unless an entirely new
Note: The notification requirement must public document is executed. So make another one which
be complied with. There must be a complies with the rules.
notation in both instruments.
But the donee who received the same may eventually
RULES FOR IMMOVABLES acquire the property through prescription.
 Donation must be in a public instrument
(absolute rule for immovables; regardless CASES
of the price)
 Must include the: LAGAZO vs. CA: Here we have a grandmother who donated
-‐ Property donated a parcel of land to Lagazo. Lagazo has to pay some
-‐ Value of the charges installments diba? According to him, that donation was
 Acceptance must be in a public instrument onerous because it has a burden. But the SC ruled that it
-‐ May be made in the same instrument was a simple donation.
(of donation) OR
algene c.
185
Why was he insisting that it was simple? Because

2nd page – donation), here (refers to 2 nd page) it says that
he did not accept the donation in accordance with Article
who appeared in the notary public is only the donor’s
749. According to him, since the donation is onerous, it is
name. It was alleged that it is a public instrument insofar as
governed by the rules on contract. Hence, the formalities
the donation is concerned but not with acceptance.
under Article 749 are not applicable. As ruled by the SC,
The SC said that you cannot divide the entire
since it is a simple donation, then he has to follow the
document into two. You cannot say that it is half-‐public and
formalities laid down under Article 749.
the other is half-‐private. Therefore, although it is not
When the case raised the CA (before it reached the
perfect for it did not fully comply with the law, there is
SC), he submitted an affidavit that he is accepting the
already a substantial compliance.
donation. However, the CA said that “Okay. Since both of
From the FT of the case: Simply put, the
you are alive and pursuant to Article 745, we will allow.”
specification of the location of the signature is merely
Still it was not acceptable because there was no notation
directory. The fact that one of the parties signs on the
and notification in the acceptance. It was just a mere
wrong side of the page, that does not invalidate the
affidavit that he is accepting the donation given to him. The
document. The purpose of authenticating the page is
SC said that it is not enough.
served, and the requirement in the above-‐quoted provision
is deemed substantially complied with.
The same thing happened in the case of…
In the same vein, the lack of an acknowledgment
RP vs. LEON SILIM: The affidavit of acceptance was not
by the donee before the notary public does not also render
noted in the deed of donation as required under Article
the donation null and void. The instrument should be
749. Yet, in this case, the SC held that there was a valid
treated in its entirety. It cannot be considered a private
acceptance. The purpose of the formal requirement for
document in part and a public document in another part.
acceptance of a donation is to ensure that such acceptance
The fact that it was acknowledged before a notary public
is duly communicated to the donor.
converts the deed of donation in its entirety a public
In this case, school building was immediately
instrument. The fact that the donee was not mentioned by
constructed after the donation was executed. Silim had
the notary public in the acknowledgment is of no moment.
knowledge of the existence of the building.
To be sure, it is the conveyance that should be
Yes, we have those formalities (regarding
acknowledged as a free and voluntary act. In any event,
acceptance) under the law but if its purpose has already
the donee signed on the second page, which contains the
been fulfilled, then it’s already okay to forego with the
Acknowledgment only. Her acceptance, which is explicitly
requirements. The law requires knowledge of the
set forth on the first page of the notarized deed of
acceptance diba? If may proof, okay na.
donation, was made in a public instrument.
What the difference between the case of RP and Lagazo?
SHOPPER’S PARADISE vs. ROQUE: The issue here is: Does
In the case of RP, Silim donated a parcel of land to
the Deed of Donation need to be registered to bind third
the Bureau of Public Schools so they can build a school
persons. The answer is no. It is enough that there is a valid
there. He lives in the same place. Does he need to be
acceptance and the donor has been notified of it, then
informed of the acceptance when he already knows? He
there is a valid donation. No need for registration.
lives within the same vicinity.
Unlike in the case of Lagazo, the grandmother was
ARANGOTE vs. MAGLUNOB: Does a subsequent
in Canada. Perhaps, if there was no notification and
acceptance cure the formal defect of non-‐acceptance? The
notation, there’s no proof that he executed an affidavit of
SC said no. Take note that this is not a sweeping statement,
acceptance. How do you know that the grandmother
it may differ depending on the case.
knows of the acceptance, diba?
It’s just that in this case, the notarized deed of
Again, the purpose of the formal requirement for
acceptance was made several years after the complaint
acceptance of a donation is to ensure that such acceptance
was filed in court. So too late the hero. Again, there was no
is duly communicated to the donor.
notation and notification.
Sometimes, the SC is very strict. In some cases
QUILALA vs. ALCANTARA: What I have before you is a jurat.
naman, they allow the non-‐existence of notation and
If it’s a contract, it’s an acknowledgement where it is stated
notification to be disregarded.
“the persons appeared before me”, the names, competent
proof of identity, etc. (Shows a document.)
Let’s go to the next section.
Although this is a complete document with the
acceptance and donation (2 pages: 1st page – acceptance
algene c.
186
Article 750. The donation may comprehend all the present the donor cannot dispose of at the time of the donation.
property of the donor, or part thereof, provided he (635)
reserves, in full ownership or in usufruct, sufficient means
for the support of himself, and of all relatives who, at the “Donations cannot comprehend future property.”
time of the acceptance of the donation, are by law entitled
to be supported by the donor. Without such reservation, Ano yang future property? Yung mga would-‐be heirs na
the donation shall be reduced in petition of any person mayaman masyado ang daddy. Yung dad nila nag-‐promise
affected. (634a) na for certain properties na they will get. There was already
a will. If it’s not a donation inter vivos, hindi future property
This is a bit confusing but just open your minds. According because it automatically takes effect. But if the donation is
to Article 750, the donation may comprehend all the mortis causa, then the properties here are considered as
present property of the donor. This is what you should future properties. Hence, the children cannot donate such
remember. property.
 Can I donate everything that I own? Yes. Wala
naman akong heirs. Article 752. The provisions of article 750 notwithstanding,
 Let’s say meron akong children (compulsory heirs), This one will
no person may make
give you confuse.
or receive, byRead thisdonation,
way of Article. Article
more
can I still donate everything that I own? Yes. 752
thanapplies
he mayonly
giveupon the death
or receive of the donor.
by will.
 Can my child say “You are depriving me of my The donation shall be inofficious in all that it may
legitime”? No. Everything I own as an owner, I What can
exceed the
this testator give
limitation. (636)by will to others? Only 50% of his
have a right to dispose. Even if I don’t have estate.
anything when I die, walang pakialam yung heirs.
The right to dispose is absolute in that sense. Upon the death of this particular donor who gave a lot of
 Of course, when somebody makes a will, he does things when he was still alive, all his donations will be
not have an absolute right to give away xxx collated. If the donations exceed whatever is left of his
because we have what we call as legitimes – that is estate, that would be considered as inofficious.
he needs to give 50% to his compulsory heirs.
 Can he finish his estate when he is alive? Yes. The But Article 752 does not mean that he cannot donate
donation may comprehend all the present
property of the donor, or part thereof.
What is the only condition here?

Provided he reserves, in full ownership or in usufruct,
sufficient means for the support of himself, and of all everything that he owns right now. Meaning, this only
relatives who, at the time of the acceptance of the applies to those who have compulsory heirs at the time of
donation, are by law entitled to be supported by the death. Anyway, the example for that will come later.
donor.
Article 753. When a donation is made to several persons
“Without such reservation, the donation shall be reduced jointly, it is understood to be in equal shares, and there
in petition of any person affected.” shall be no right of accretion among them, unless the
So this is not a void donation. It is reducible. Who is donor has otherwise provided.
the person affected? The preceding paragraph shall not be applicable
1. The donor – He can file an action to reduce the to donations made to the husband and wife jointly,
donation between whom there shall be a right of accretion, if the
2. The donor’s children – Represented by people with contrary has not been provided by the donor. (637)
capactiy to act
We have acrretion here which has a different meaning.
So this (Article 750) is the first ground for reduction of When a donation is made to several persons like I donate
donation. The action here is reduction. P1M to A and B. It is understood to be in equal shares so
P500,000 each sila.
Article 751. Donations cannot comprehend future
property. “There shall be no right of accretion among them, unless
By future property is understood anything which the donor has otherwise provided.”
algene c.
187
To be able to understand accretion, you have to

“The donor shall also be liable for eviction or hidden
know RIP:
defects in case of bad faith on his part.”
1. Repudiates
If the donation was made on good faith, the donor
2. Incapacitated
is not responsible for the hidden defects. Let’s say the car
3. Pre-‐deceases
donated is defective. If the donation was done in good
faith, the donor is not liable for the hidden defects. If it was
Illustration: P1,000,000 donation to A and B.
made in bad faith, he is liable.
 Presumption: Equal shares (A receives P500,000
and B the other half)
Article 755. The right to dispose of some of the things donated, or
 If A revokes, does his share go to B? No.
of some amount which shall be a charge thereon, may be
 If A is incapacitated to accept the donation, does
reserved by the donor; but if he should
his share go to B? No.
die without having made use of this right, the property or
 If A pre-‐deceases the donor, does his share go to
amount reserved shall belong to the donee. (639)
B? No.
 There shall be no accretion (Meaning of accretion:
if something happens to one, his share will go to If the donor wants to reserve the right to dispose the thing
the other) between A and B in cases of RIP. donated, he can do that. Even if the donation is effective
Exception: When otherwise provided by already, the donor can reserve the right to dispose.
the donor. The donor can say that
accretion can apply. That is his business. If Article 756. The ownership of property may also be
none, then the rules under Article 753 will donated to one person and the usufruct to another or
govern. others, provided all the donees are living at the time of the
 The non-‐applicability of accretion in donation does donation. (640a)
not cover when donees are husband and wife. The
share of one will go to the other if there is RIP. We already know this. I am the donor, I want to give the
usufruct to A and the naked ownership to B. What is the
Article 754. The donee is subrogated to all the rights and condition? That both of them are alive at the time of
actions which in case of eviction would pertain to the donation.
donor. The latter, on the other hand, is not obliged to
warrant the things donated, save when the donation is Article 757. Reversion may be validly established in favor of only
onerous, in which case the donor shall be liable for the donor for any case and circumstances, but not in favor of
eviction to the concurrence of the burden. other persons unless they are all living at the
The donor shall also be liable for eviction or time of the donation.
hidden defects in case of bad faith on his part. (638a) Any reversion stipulated by the donor in favor of a in violation
ofthird
what is provided in the
person
preceding paragraph shall be void, but shall not nullify the
“The donee is subrogated to all the rights and actions donation. (614a)
which in case of eviction would pertain to the donor.”
Because the donation is effective during the
lifetime of the donor, ownership transfers to the donee so Can this be provided in the deed of donation? That the
all the rights and actions (right to recover) is already property be reverted back to the donor?
transferred to the donee. Yes. Article 757 provides that reversion may be
validly established in favor of only the donor for any case
“The latter, on the other hand, is not obliged to warrant and circumstances, but not in favor of other persons unless
the things donated, save when the donation is onerous they are all living at the time of the donation.
xxx”
Let’s say the donor gives the donee a parcel of Example: I will donate my car to you but after 5 years, it will
land. The next year, it happens to be expropriated. Tapos revert back to me. This is valid as long as it is stipulated in
sabihin ni donee, “Donor, na-‐expropriate yung lupa. Can the deed of donation.
you give me another one?” He cannot do it. Unless the
donation is onerous. If I say “I will donate my car to you but after 5 years, it pass
on to your child in case you have one,” pwede ba to? No.
Because it must be in favor of a person who is living at the
time the donation was made.
algene c.
188
the property affected shall be returned or its value if the

If I say “I will donate my car to you but after 5 years, that donee has sold the same.
will no longer belong to you but to your sister who is alive.” If the property is mortgaged, the donor may
Pwede to. redeem the mortgage, by paying the amount guaranteed,
with a right to recover the same from the donee.
The donor can make these kinds of conditions. When the property cannot be returned, it shall be
estimated at what it was worth at the time of the
Article 758. When the donation imposes upon the donee donation. (645a)
the obligation to pay the debts of the donor, if the clause
does not contain any declaration to the contrary, the Article 763. The action for revocation or reduction on the
former is understood to be liable to pay only the debts grounds set forth in article 760 shall prescribe after four
which appear to have been previously contracted. In no years from the birth of the first child, or from his
case shall the donee be responsible for the debts legitimation, recognition or adoption, or from the judicial
exceeding the value of the property donated, unless a declaration of filiation, or from the time information was
contrary intention clearly appears. (642a received regarding the existence of the child believed
dead.
We know this already under usufruct so we will no longer This action cannot be renounced, and is
discuss this. transmitted, upon the death of the donor, to his legitimate
and illegitimate children and descendants. (646a)
Article 759. There being no stipulation regarding the payment of
debts, the donee shall be responsible therefor Article 764. The donation shall be revoked at the instance of the
only when the donation has been made in fraud of donor, when the donee fails to comply with any of the
creditors. conditions which the former imposed upon the latter.
The donation is always presumed to be in fraud of creditors, In this case, the property donated shall be
when at the time thereof the donor did not the alienations
returned made by the donee and the mortgages imposed
to the donor,
reserve sufficient property to pay his debts prior to the thereon by him being void, with the limitations established, with
donation. (643) regard to third persons, by the Mortgage Law and the Land
Registration laws.
CHAPTER 4 -‐ Revocation and Reduction of Donations This action shall prescribe after four years from the
noncompliance with the condition, may be transmitted to the
heirs of the donor, and may be exercised against the donee's
Article 760. Every donation inter vivos, made by a person having
heirs. (647a)
no children or descendants, legitimate or
legitimated by subsequent marriage, or illegitimate, may be
revoked or reduced as provided in the next article, by the
happening of any of these events: Article 765. The donation may also be revoked at the
If the donor, after the donation, should have instance of the donor, by reason of ingratitude in the
legitimate or legitimated or illegitimate children, even though
following cases:
they be posthumous;
(1) If the donee should commit some offense
If the child of the donor, whom the latter
believed to be dead when he made the donation, should against the person, the honor or the property of the
turn out to be living; donor, or of his wife or children under his parental
If the donor subsequently adopt a minor child. authority;
(644a) (2) If the donee imputes to the donor any criminal
offense, or any act involving moral turpitude, even though
he should prove it, unless the crime or the act has been
Article 761. In the cases referred to in the preceding article, committed against the donee himself, his wife or children
the donation shall be revoked or reduced insofar as it under his authority;
exceeds the portion that may be freely disposed of by will, (3) If he unduly refuses him support when the
taking into account the whole estate of the donor at the donee is legally or morally bound to give support to the
time of the birth, appearance or adoption of a child. (n) donor. (648a)
Article 762. Upon the revocation or reduction of the Article 766. Although the donation is revoked on account
donation by the birth, appearance or adoption of a child, of ingratitude, nevertheless, the alienations and
algene c.
189
mortgages effected before the notation of the complaint inofficious donations. Those referred to in the
for revocation in the Registry of Property shall subsist. preceding paragraph cannot renounce their right during
the lifetime of the donor, either by express declaration, or
Later ones shall be void. (649) by consenting to the donation.
The donees, devisees and legatees, who are not
Article 767. In the case referred to in the first paragraph of entitled to the legitime and the creditors of the deceased
the preceding article, the donor shall have a right to can neither ask for the reduction nor avail themselves
demand from the donee the value of property alienated thereof. (655a)
which he cannot recover from third persons, or the sum
for which the same has been mortgaged. Article 773. If, there being two or more donations, the
The value of said property shall be fixed as of the disposable portion is not sufficient to cover all of them,
time of the donation. (650) those of the more recent date shall be suppressed or
reduced with regard to the excess. (656)
Article 768. When the donation is revoked for any of the
causes stated in article 760, or by reason of ingratitude, or
when it is reduced because it is inofficious, the donee shall
not return the fruits except from the filing of the
complaint.
If the revocation is based upon noncompliance
with any of the conditions imposed in the donation, the
donee shall return not only the property but also the fruits
thereof which he may have received after having failed to
fulfill the condition. (651)
Article 769. The action granted to the donor by reason of

ingratitude cannot be renounced in advance. This action
prescribes within one year, to be counted from the time
the donor had knowledge of the fact and it was possible
for him to bring the action. (652) “I think that it is very important if you
know what you want,
Article 770. This action shall not be transmitted to the heirs understand where you are heading towards, and
of the donor, if the latter did not institute the same, try your best to get it.
although he could have done so, and even if he should die It is only when we use our hearts to do it, and
before the expiration of one year. fall in love with what we are doing,
Neither can this action be brought against the heir then can we really get real determination.”
of the donee, unless upon the latter's death the complaint
has been filed. (653)
Article 771. Donations which in accordance with the

provisions of article 752, are inofficious, bearing in mind
the estimated net value of the donor's property at the
time of his death, shall be reduced with regard to the
excess; but this reduction shall not prevent the donations
from taking effect during the life of the donor, nor shall it
bar the donee from appropriating the fruits.
For the reduction of donations the provisions of
this Chapter and of articles 911 and 912 of this Code shall
govern. (654)
Article 772. Only those who at the time of the donor's

death have a right to the legitime and their heirs and
successors in interest may ask for the reduction or
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Coverage:
When you write a book or song, that is your creation.
 Book 3 of the Civil Code – Modes of Acquiring
Nobody owns it before you. So that is original mode of
Ownership
acquisition.
 Republic Act No. 8293 or the Intellectual Property
Code
We also have derivative modes where there was an owner
An Act Prescribing the Intellectual Property Code and before you. The ownership was transferred to you by law.
Establishing the Intellectual Property Office, Providing for
Examples:
its Powers and Functions, and for Other Purposes
1. Law
Approved: June 6, 1997
 Article 445 – the owner of the principal is
Effectivity: January 1, 1998
the owner of the accessory
 Republic Act No. 10372
 Article 461 – change in the course of the
An Act Amending Certain Provisions of RA 8293,
river; you are the owner of the dried up
Otherwise known as the “Intellectual Property Code of the
river bed if it occupies your property
Philippines” and for Other Purposes
 Article 465 – formation of islands, if the
island form on a river that is non-‐navigable
September 9, 2014
and it is closer to your bank
 Adjunction
We are now on the final chapter of our subject Property.
2. Donation
Just to give you an introduction to Intellectual Property…
3. Succession – when the decedent dies, the heir
So far, we have been taking up the Civil Code. 99% of the
automatically becomes the owner of the property;
time, it deals with substantive issues. However, the
whether it is testate (the testator left a will and
Intellectual Property Code deals with both substantive and
assigned his properties) or intestate (there was no
procedural issues. When I discuss the procedural aspect, do
will, so the heirs acquire ownership by operation of
not go to sleep and think na “Hindi naman to remedial
law)
law.” IPC comes out in commercial law. It’s supposed to be
a separate subject. 4. As a consequence of certain contracts – sale,
barter, etc.
Let’s go to the first part of Book 3. It is called “Different
Original modes Derivative Modes
Modes of Acquiring Ownership.”
1. Occupation 1. By law
2. Intellectual creation 2. Donation
MODES OF ACQUIRING OWNERSHIP
3. Succession
Article 712. Ownership is acquired by occupation and by 4. As a consequence of
other contracts
intellectual creation.
Ownership and other real rights over property are
acquired and transmitted by law, by donation, by testate You have to be able to distinguish between the mode of
and intestate succession, and in consequence of certain acquiring ownership and the title. Like under number 4, the title
contracts, by tradition. is sale and the mode is delivery.
They may also be acquired by means of
prescription. (609a) Mode Title
The process of acquiring or That which is not ordinarily
The first two: Occupation and Intellectual Creation. These transferring ownership. sufficient to convey
are the original modes of acquiring ownership. They are ownership but which gives a
independent of any pre-‐existing right of another. juridical justification for a
mode; it provides for a
What is occupation? cause for acquisition of
Example: Hunting, fishing, finding treasure. You don’t know ownership.
if there’s an owner previous to you. When you hunt, the Example: If A buys a car
animal is originally wild. from B, then that it is a
justification for B to deliver
What is intellectual creation? the car to A, which will
transfer to ownership to
him.
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Proximate cause Remote cause is never without an owner. If it is without an owner or

Note: The title comes first than the mode. unregistered or when nobody is there, it is owned by the
State – it is a property of public dominion. Even abandoned
Just read the other distinctions in the book of Paras, also land becomes patrimonial land of the State acquired
the distinctions between personal and real right. through acquisitive prescription.
Of course, ownership can also be acquired by prescription. Ownership of land cannot be acquired by occupation but it
can be acquired by prescription.
What is occupation? According to Article 713…
Occupation Prescription
Article 713. Things appropriable by nature which are There is an original owner It is already owned by
without an owner, such as animals that are the object of somebody else
hunting and fishing, hidden treasure and abandoned Original mode Derivative mode
movables, are acquired by occupation. (610) Period of possession is Period of possession is
shorter longer
Occupation is the acquisition of ownership by seizing
corporeal things, personal property that has no owner Article 715. The right to hunt and to fish is regulated by
made with the intention of acquiring them and accomplised special laws. (611)
through legal rules. What is the prescriptive period? If you are the owner of a
swarm of
Article 716.bees
Theand the bees
owner actually of
of a swarm livebees
in your
shallproperty
have a
Just like abandonment, occupation applies only to personal (your land) then they go to your neighbors,
right to pursue them to another's land, indemnifying if you do not
the
or movable properties. It cannot apply to real properties. pursue them
possessor in 2latter
of the days, for
thethe
bees will beIfowned
damage. the owner by your
has
Even if the general understanding of the word occupation neighbors.
not pursued Dothe
notswarm,
ask me or to ceases
explain to
these
do things
so withinbecause
two
is that you occupy things, like apartment unit or a parcel of I’m not part of the Code Commission.
consecutive days, the possessor of the land may occupy or
land but that is NOT its meaning here in acquisition of retain the same. The owner of domesticated animals may
ownership. Don’t think about the normal understanding of Whatclaim
also aboutthemdomesticated animals?
within twenty daysYou
to already knowfrom
be counted the
occupation here. Okay? differences between wild, domesticated and domestic
their occupation by another person. This period having noh?
Pag-‐wildthey
expired, animals, you acquire
shall pertain to him whoownership over
has caught andthem
kept
What are the essential requisites of occupation? through
them. (612a)occupation. You bring the wild animal to your
1. There must be a seizure or apprehension – material place and then it becomes domesticated if it is in the habit
holding is not required as long as there is right of of returning. What if the domesticated animal left and went
disposition to your neighbor’s house? According to Article 716, you only
2. The property seized must be corporeal personal have twenty days. Ang weird nga ng provision eh. Diba
property kakasabi lang na occupation is an original mode and this
Corporeal – something that you can hold; article is talking about the owner and neighbor?
it must be tangible; hindi pwede ang
shares of stock (it may be personal but it is
incorporeal)
3. The property seized must be susceptible of
appropriation either abandoned or unowned
4. There must be an intent to appropriate
5. The requisites or conditions of the law must be
complied with such as:
a. Good faith
b. Proper title
c. Legal period of time
Article 714. The ownership of a piece of land cannot be
acquired by occupation. (n) Article 717. Pigeons and fish which from their respective
breeding places pass to another pertaining to a different
This is already an express provision of the law. Why? owner shall belong to the latter, provided they have not
Because land, unlike fishes in the sea or animals in the wild, been enticed by some article or fraud. (613a)
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The finder and the owner shall be obliged, as the case may
If there is a pigeon in your property and it flies to your be, to reimburse the expenses. Let’s say the owner collects
neighbor, your neighbor will be considered as its owner. his property, then he has to reimburse the fees for
Pero pag-‐fish? Paano na yan? Maybe the Code Commission publication, etc.
here is already tired in making this provision. 
The thing is, there is a question about it on the bar exam
Article 718. He who by chance discovers hidden treasure in but it is not an application of the provision. The question
another's property shall have the right granted him in was: When the mayor received the item, he did not publish
article 438 of this Code. (614) and kept it to himself. What is he liable for? He is liable for
theft.
Let’s now go to the finder’s keepers law. This is another
mode of acquiring ownership. This is not an original mode Article 720. If the owner should appear in time, he shall be
but a derivative mode. obliged to pay, as a reward to the finder, one-‐tenth of the
sum or of the price of the thing found.
Article 719. Whoever finds a movable, which is not
treasure, must return it to its previous possessor. If the How many times do you hear a taxi driver finding things on
latter is unknown, the finder shall immediately deposit it his taxi? How much does the taxi driver receive as a reward?
with the mayor of the city or municipality where the The owner of the millions give P1,000 or P500. How much is
finding has taken place. the driver entitled to under Article 720? 1/10.
The finding shall be publicly announced by the
mayor for two consecutive weeks in the way he deems So if what is found is P1,000,000, the driver is entitled to
best. receive P100,000. This is in accordance to Article 720. 10%
If the movable cannot be kept without ang reward, okay?
deterioration, or without expenses which considerably
diminish its value, it shall be sold at public auction eight Summary: Rules for Finder of Movable Property
days after the publication. 1. The finder must return it to its previous possessor.
Six months from the publication having elapsed 2. If the previous possessor is unknown, the finder
without the owner having appeared, the thing found, or shall immediately deposit it with the mayor of the
its value, shall be awarded to the finder. The finder and the city or municipality where the finding has taken
owner shall be obliged, as the case may be, to reimburse place.
the expenses. (615a) 3. The finding shall be publicly announced by the
mayor for two consecutive weeks in the way he
Whoever finds a movable, which is not treasure, must deems best.
return it to its previous possessor. If your don’t know the 4. The movables shall be sold at public auction 8 days
owner, you have to bring it to the mayor or to the lost and after the publication. (if the movable cannot be
found center in your area. kept without deterioration or wihtout expenses
which considerably diminish its value)
The finding shall be publicly announced by the mayor for 5. The movable or its value shall be awarded to the
two consecutive weeks in the way he deems best. So finder (6 months from the publication having
pwede niya i-‐announce sa television or publish it in a elapsed without the owner having appeared)
newspaper. Well, bahala siya basta that is his prerogative 6. The finder and the owner shall be obliged, as the
under Article 719. case may be, to reimburse the expenses.
What if it is a hamburger that is found? You cannot keep it We are done with occupation. Wala namang related
for a long time diba? You have to sell it a public auction occupation sa provision diba except Article 713? Let’s go to
eight days after publication. Intellectual Creation.
6 months from publication and nobody looks for the Let’s have a little exercise. I just want to know if you
movable thing, then the thing or its value shall be awarded already have an idea. Write three things on a sheet of
to the finder. He will acquire ownership of the thing that he paper. Give an example that can be:
found. 1. Patented
2. Trademark
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193
3. Copyrighted
acquire ownership even before their work is copyrighted or
patented.
*Reading of the answers in class*
Take note, you should be able to distinguish between the
These three kinds of intellectual property are the popular
work itself and the copyright. The copyright is exactly what
ones and they have different functions. Before we go to
it means – the right to copy. If I write the book, I own it. I
that, let’s go to what intellectual creation under Article 721.
own my work. Do I own the copyright? Well, we will see
later if I automatically acquire the right to reproduce.
Article 721. By intellectual creation, the following persons
acquire ownership:
When we speak of patent, the particular product I produce,
(1) The author with regard to his literary,
I own it automatically. That is my intellectual creation. But
dramatic, historical, legal, philosophical, scientific or other
the right to mass produce it or distribute it, that is another
work;
story. That is what patent is all about.
(2) The composer; as to his musical composition;
(3) The painter, sculptor, or other artist, with
Ownership – even before the owner (the persons referred
respect to the product of his art;
to under Article 721) is already the owner before its
(4) The scientist or technologist or any other
publication. However, to protect his right, you have to ask
person with regard to his discovery or invention. (n)
for a copyright. If one does not have a copyright over his
work, then anybody can copy.
Under this article, the following acquires ownership:
1. Author with respect to his work
Article 723. Letters and other private communications in
2. Composer with respect to his composition
writing are owned by the person to whom they are
3. Painter, Sculptor or other artist with respect to his
addressed and delivered, but they cannot be published or
art product
disseminated without the consent of the writer or his
4. Scientist or Technologist or any other person with
heirs. However, the court may authorize their publication
regard to his discovery or invention
or dissemination if the public good or the interest of
Under this, there is something here that is
justice so requires. (n)
not supposed to be here. If you discover a
planet or a comet, do you own the comet?
No. So discoveries are not included. Let’s say X write a love letter to Y, who owns the love
Inventions are patentable but discoveries letter? The person to whom it is addressed and delivered,
are not. If you discover a new element, so si Y.
that is already there. You did not make it.
You can name it after you but not own it. Can Y publish the love letter? Like in Eskriba publication?
No. She has to ask permission from X, the sender.
Intellectual creation is a product of mental labor, embodied
in writing or other some material form. It is one of the You have to be able to distinguish between the paper itself
original modes of acquiring ownership. and what’s in it. The love letter which is tangible (owned by
the recipient)… The receiver can enjoy it or dispose of it or
Article 722. The author and the composer, mentioned in recover it from A if the latter takes it from her (rights of the
Nos. 1 and 2 of the preceding article, shall have the owner). The thoughts and the ideas, the flowery words, are
ownership of their creations even before the publication owned by the sender. So the thoughts and emotions
of the same. Once their works are published, their rights belong to the writer. He is the only one who can publish it
are governed by the Copyright laws. or communicate it to the owner. So Y cannot show it to
The painter, sculptor or other artist shall have another person.
dominion over the product of his art even before it is
copyrighted. That’s it. Recipient cannot publish or disseminate the
The scientist or technologist has the ownership of letters or private communication in writing unless the
his discovery or invention even before it is patented. (n) writer or his heirs gave their consent, or the public good
or the interest of justice so requires.
According to Article 722, the author, the composer, the

painter, sculptor, other artists, the scientist or technologist
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According to the provision, the court may require the law, shall be entitled to benefits to the extent necessary to
publication and dissemination if the public good or interest give effect to any provision of such convention, treaty or
of justice so requires. So you can go to court. reciprocal law, in addition to the rights to which any
owner of an intellectual property right is otherwise
Article 724. Special laws govern copyright and patent. entitled by this Act. (n)
(429a)
This is very important because it talks about who may
REPUBLIC ACT NO. 8293: invoke the Intellectual Property Code and what related
INTELLECTUAL PROPERTY CODE OF THE PHIPILIPPINES laws can be invoked.
So with this, we are going to jump to RA 8293 (AN ACT Any person who is:
PRESCRIBING THE INTELLECTUAL PROPERTY CODE AND 1. A national or
ESTABLISHING THE INTELLECTUAL PROPERTY OFFICE, 2. Domiciled or
PROVIDING FOR ITS POWERS AND FUNCTIONS, AND FOR 3. Has a real and effective industrial
OTHER PURPOSES). establishment
in a country which:
We have amendments under RA 10372 (AN ACT AMENDING a. is a party to any convention, treaty or agreement
CERTAIN PROVISIONS OF REPUBLIC ACT NO. 8293, relating to intellectual property rights or the
OTHERWISE KNOWN AS THE "INTELLECTUAL PROPERTY repression of unfair competition, to which the
CODE OF THE PHILIPPINES", AND FOR OTHER PURPOSES). Philippines is also a party or
b. extends reciprocal rights to nationals of the
Parts of the Intellectual Property Code of the Philippines Philippines by law
are also amended by RA 9502 (Universally Accessible shall be entitled to: benefits to the extent necessary to give
Cheaper and Quality Medicines Act of 2008 or AN ACT effect to any provision of such convention, treaty or
PROVIDING FOR CHEAPER AND QUALITY MEDICINES, reciprocal law, in addition to the rights to which any owner
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 8293 OR of an intellectual property right is otherwise entitled by this
THE INTELLECTUAL PROPERTY CODE, REPUBLIC ACT NO. Act.
6675 OR THE GENERICS ACT OF 1988, AND REPUBLIC ACT
NO. 5921 OR THE PHARMACY LAW, AND FOR OTHER The IPC gives certain people and entities certain rights in
PURPOSES). It focuses on the portion on patents. order to protect their intellectual property rights. Aside
from the IPC, there are also treaties and conventions by the
Intellectual property – the product of mental labor Philippines in which the country is a signatory and is bound.
embodied in writing or some other material form. It is one We have:
of the original modes of acquiring ownership.  Berne Convention of 1981 – Switzerland
 Stockholme Act of 1967 – Sweden
September 23, 2014  Paris Act of 1971
 Exchange Notes in the US-‐Philippines in 1948 – This
We will now be taking up the provisions of the Intellectual is the agreement on reciprocity
Property Code one by one. The provisions here (refering to  Paris Convention on Intellectual Property – One of
PPT slides) are not reflected as provisions. I already the most popular conventions
outlined them. All of these provide for the rights that are given to
intellectual property holders or creators.
Section 1. Title. -‐ This Act shall be known as the
"Intellectual Property Code of the Philippines." If one is a foreigner, let’s say a Chinese person from China
or maybe his domicile is in China or maybe he has a
Section 3. International Conventions and Reciprocity. -‐ Any business there, provided that country is a signatory to a
person who is a national or who is domiciled or has a real Paris Convention on Intellectual Property… He goes here in
and effective industrial establishment in a country which is the Philippines and his intellectual property rights are
a party to any convention, treaty or agreement relating to violated, then he can invoke the Paris Convention on
intellectual property rights or the repression of unfair Intellectual Property. He can also invoke the RA 8293 or the
competition, to which the Philippines is also a party, or Intellectual Property Code of the Philippines as a basis for
extends reciprocal rights to nationals of the Philippines by his rights.
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 including licensing of computer software except

Bar Exam Question: What is the scope of the IPC? Does it computer software developed for mass market.
only apply to Filipinos?
You can see from Section 3 that even foreigners Section 4.3. The term "Office" refers to the Intellectual
can avail or invoke this law. Property Office created by this Act.
Let’s go to defintions. 4.4. The term "IPO Gazette" refers to the gazette
published by the Office under this Act. (n)
Section 4. Definitions. -‐ 4.1. The term "intellectual property
rights" consists of: The term office here refers to the IPO or the Intellectual
a) Copyright and Related Rights; Property Office. Just like the Official Gazette, the IPO has
b) Trademarks and Service Marks; its own IPO Gazette published by the IPO itself.
c) Geographic Indications;
d) Industrial Designs; Section 5 talks about the functions of the IPO which I will
e) Patents; leave up to you.
f) Layout-‐Designs (Topographies) of Integrated
Circuits; and Section 5. Functions of the Intellectual Property Office
g) Protection of Undisclosed Information (IPO). -‐ 5.1. To administer and implement the State policies
declared in this Act, there is hereby created the
According to Section 4, we have different intellectual Intellectual Property Office (IPO) which shall have the
property rights. If you look at my outline, I highlighted the following functions:
important IP rights: a) Examine applications for grant of letters patent
 Copyright and related rights for inventions and register utility models and industrial
 Trademarks and service marks designs;
 Patents b) Examine applications for the registration of
These three are always asked in the bar. marks, geographic indication, integrated circuits;
c) Register technology transfer arrangements and
Section 4.2. The term "technology transfer arrangements" settle disputes involving technology transfer payments
refers to contracts or agreements involving the transfer of covered by the provisions of Part II, Chapter IX on
systematic knowledge for the manufacture of a product, Voluntary Licensing and develop and implement strategies
the application of a process, or rendering of a service to promote and facilitate technology transfer;
including management contracts; and the transfer, d) Promote the use of patent information as a tool
assignment or licensing of all forms of intellectual for technology development;
property rights, including licensing of computer software e) Publish regularly in its own publication the
except computer software developed for mass market. patents, marks, utility models and industrial designs,
issued and approved, and the technology transfer
This provision talks about TTA or Technology Transfer arrangements registered;
Arrangements. From the term itself, it is quite easy to f) Administratively adjudicate contested
understand. proceedings affecting intellectual property rights; and
g) Coordinate with other government agencies
It is defined as the contracts or agreements involving the and the private sector efforts to formulate and implement
transfer of systematic knowledge for: plans and policies to strengthen the protection of
 The manufacture of a product, intellectual property rights in the country.
If I am the inventor of the product, I am
5.2. The Office shall have custody of all records, books,
the only one who manufactures this
drawings, specifications, documents, and other papers and
product. I can enter into a TTA with you
things relating to intellectual property rights applications
and give you a know-‐how.
filed with the Office. (n)
 the application of a process, or rendering of a
service including management contracts, and
 the transfer, assignment or licensing of all forms There are a lot of functions. But basically, these functions
of intellectual property rights, are distributed. That’s why we won’t take up Section 5 as it
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196
is. As we reach the other provisions, we will see different

6. The Administrative, Financial and Personnel
functions.
Services Bureau
7. Bureau of Copyright and Other Related Rights
What is the structure of the IPO?
Section 6. The Organizational Structure of the IPO. -‐ 6.1.
The Director General, the deputies and assistants are all
The Office shall be headed by a Director General who shall
appointed by the President. Other officers and employees
be assisted by two (2) Deputies Director General.
are appointed by the Secretary of Trade and Industry.
6.2. The Office shall be divided into six (6) Bureaus, each of
Who is the Sec. of DTI?
which shall be headed by a Director and assisted by an
Researched: Gregory L. Domingo is the current Secretary of
Assistant Director. These Bureaus are:
the Department of Trade and Industry (DTI) serving since 01
a) The Bureau of Patents;
July 2010 when he was appointed by President Benigno S.
b) The Bureau of Trademarks;
Aquino III.
c) The Bureau of Legal Affairs;
d) The Documentation, Information and
Section 7 talks about the functions of the DG, the DDGs.
Technology Transfer Bureau;
e) The Management Information System and EDP
Section 7. The Director General and Deputies Director
Bureau; and
General. -‐ 7.1. Functions. -‐ The Director General shall exercise
f) The Administrative, Financial and Personnel
the following powers and functions:
Services Bureau
a) Manage and direct all functions and activities of
g) the Bureau of Copyright and Other Related
the Office, including the promulgation of rules and
Rights.
regulations to implement the objectives, policies, plans,
programs and projects of the Office: Provided, That in the
6.3. The Director General, Deputies Director General,
exercise of the authority to propose policies and standards
Directors and Assistant Directors shall be appointed by the
in relation to the following: (1) the effective, efficient, and
President, and the other officers and employees of the
economical operations of the Office requiring statutory
Office by the Secretary of Trade and Industry,
enactment; (2) coordination with other agencies of
conformably with and under the Civil Service Law. (n)
government in relation to the enforcement of intellectual
property rights; (3) the recognition of attorneys, agents,
Note:
or other persons representing applicants or other parties
As amended by Section 1 of RA 10372
before the Office; and (4) the establishment of fees for the
Not read in class. Added for review purposes.
filing and processing of an application for a patent, utility
model or industrial design or mark or a collective mark,
The head of the IPO is the Director General (DG) and he is geographic indication and other marks of ownership, and
assisted by two deputies. for all other services performed and materials furnished
by the Office, the Director General shall be subject to the
Under what department of the government is the IPO? supervision of the Secretary of Trade and Industry;
Department of Trade and Industry (DTI) b) Exercise exclusive appellate jurisdiction over all
decisions rendered by the Director of Legal Affairs, the
What are the different bureaus of the IPO? There are seven. Director of Patents, the Director of Trademarks, the
If you look at the provision, there are only 6. The said Director of Copyright and Other Related Rights, and the
provision is amended by RA 10372. Before RA 10372, there Director of the Documentation, Information and
was no Bureau of Copyyrights and Other Related Rights. Technology Transfer Bureau. the decisions of the Director
General in the exercise of his appellate jurisdiction in
There are now 7 Bureaus: respect of the decisions of the Director of Patents, the
1. The Bureau of Patents Director of Trademarks and the Director of Copyright and
2. The Bureau of Trademarks Other Related Rights shall be appealable to the Court of
3. The Bureau of Legal Affairs Appeals in accordance with the Rules of Court; and those
4. The Documentation, Information and Technology in respect of the decisions of the Director of the
Transfer Bureau – incharged of TTAs Documentation, Information and Technology Transfer
5. The Management Infromation System and EDP Bureau shall be appealable to the Secretary of Trade and
Bureau Industry; and
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c) Undertake enforcement functions supported by

DTM and DC. The decisions of the DG are appeallable to the
concerned agencies such as the Philippine National Police,
CA.
the National Bureau of Investigation, the Bureau of
Customs, the Optical Media Board, and the local
The decisions of the Director of Documentation,
government units, among others;
Information and Technology Transfer Bureau (DITT) are
d) Conduct visits during reasonable hours to
also appeallable to the DG. But in this case, the decisions of
establishments and businesses engaging in activities
the DG are appeallable to the Secretary of Trade and
violating intellectual property rights and provisions of this
Industry (STI). You have to differentiate. This is provided
Act based on report, information or complaint received by
for under Section 7.1B.
the office; and
e) Such other functions in furtherance of
If there is something filed with the DG in its original
protecting IP rights and objectives of this Act.
jurisdiction then the appeal will no longer be with the CA
but with the STI. This is under Section 7.1C. “Exercise
7.2. Qualifications. -‐ The Director General and the Deputies
original jurisdiction to resolve disputes relating to the terms
Director General must be natural born citizens of the
of a license involving the author's right to public
Philippines, at least thirty-‐five (35) years of age on the day
performance or other communication of his work. The
of their appointment, holders of a college degree, and of
decisions of the Director General in these cases shall be
proven competence, integrity, probity and independence:
appealable to the Secretary of Trade and Industry.“
Provided, That the Director General and at least one (1)
Deputy Director General shall be members of the
Summary:
Philippine Bar who have engaged in the practice of law for
at least ten (10) years: Provided further, That in the  Decisions of DLA, DP, DTM and DC -‐> Appeallable
selection of the Director General and the Deputies Director with DG -‐> Appeallable with CA
General, consideration shall be given to such qualifications  Decisions of DITT -‐> Appeallable with DG -‐>
as would result, as far as practicable, in the balanced Appeallable with STI
representation in the Directorate General of the various  Decisions of DG (original jurisdiction) -‐>
fields of intellectual property. Appeallable with STI
7.3. Term of Office. -‐ The Director General and the Deputies Who will supervise the DG? The Secretary of Trade and
Director General shall be appointed by the President for a Industry.
term of five (5) years and shall be eligible for
reappointment only once: Provided, That the first Director If you want to know the qualifications of the DGs and
General shall have a first term of seven (7) years. DDGS, they must be:
Appointment to any vacancy shall be only for the  Natural born citizens
unexpired term of the predecessor.  At least 35 years old
 Holders of college degree
7.4. The Office of the Director General. -‐ The Office of the  Holders of proven competence, integrity, probity
Director General shall consist of the Director General and and independence
the Deputies Director General, their immediate staff and The DG and at least one DDG must be a member of the
such Offices and Services that the Director General will set Philippine Bar who have engaged in the practice of law for
up to support directly the Office of the Director General. at least 10 years.
(n)
The term of office = 5 years
Note: Eligible for appointment only once
As amended by Section 2 of RA 10372
Not read in class. Added for review purposes. Let’s go to different Bureaus.
Any decision of the DLA (Director of Legal Affairs), the DP What are the general functions of the Bureau of Patents?
(Director of Patents), DTM (Director of Trademarks) and DC
(Director of Copyrights and Other Related Rights) are all Section 8. The Bureau of Patents. -‐ The Bureau of Patents
appeallable to the DG. The DG exercises exclusive shall have the following functions:
appellate jurisdiction over all decisions of the DLA, DP,
8.1. Search and examination of patent applications
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and the grant of patents; 1. Search and examination of the applications for
8.2. Registration of utility models, industrial the registration of marks, geographic indications
designs, and integrated circuits; and and other marks of ownership and the issuance of
8.3. Conduct studies and researches in the field of the certificates of registration
patents in order to assist the Director General in This is the same with the 1st function of the
formulating policies on the administration and BP. After the search and examination, it
examination of patents. (n) will issue a certification of the mark.
2. Conduct studies and researches in the field of
The functions of the BP are as follows: trademarks in order to assist the Director General
1. Search and examination of patent applications in formulating policies on the administration and
and the grant of patents examination of trademarks.
If you are the inventor of a thing and you
want to apply for a patent to patent your Section 9A. The Bureau of Copyright and Other Related
product or invention, you go to the BP. It Functions
Rights. – of
thethe BureauofofCopyright
Bureau Copyright and
and Other Related
Related
will search for similar applications and it Rights:shall have the following functions:
Rights
will examine your applications. After that
long procedure, it is also the role of the 9A.1. Exercise original jurisdiction to resolve
Bureau to grant the patent. disputes relating to the terms of a license involving the
2. Registration of utility models, industrial designs, author’s right to public performance or other
and integrated circuits communication of his work;
It is the office to go to if you want to 9A.2. Accept, review and decide on applications
register a utility motel, industrial design for the accreditation of collective management
and integrated circuits. We will discuss this organizations or similar entities;
later. 9A.3. Conduct studies and researches in the field
3. Conduct studies and researches in the field of of copyright and related rights; and
patents in order to assist the Director General in 9A.4. Provide other copyright and related rights
formulating policies on the administration and service and charge reasonable fees therefor.
examination of patents.
Note: As amended by Section 3 of RA 10352
Let’s go to the general functions of the Bureau of
Trademarks.
Section 9. The Bureau of Trademarks. -‐ The Bureau of 1. Exercise original jurisdiction to resolve disputes
Trademarks shall have the following functions: relating to the terms of a license involving the author’s
right to public performance or other communication of his
9.1. Search and examination of the applications for work
the registration of marks, geographic indications and If you look at letter C Section 7.1. It says
other marks of ownership and the issuance of the that the Director of the IPO will exercise original
certificates of registration; and jurisdiction to resolve disputes relating to the
9.2. Conduct studies and researches in the field of terms of a license involving the author's right to
trademarks in order to assist the Director General in public performance or other communication of his
formulating policies on the administration and work.
examination of trademarks. (n) This means that Section 9A amended
Section 7.1C. Under RA 8293, there was no Bureau
You already have an idea what a trademark is. It pertains to of Copyright so it was the job of the DG to resolve
the sign, logo. disputes involving copyrights. But now, we have
Examples: Logo of Lacoste (the crocodile); the the Bureau of Copyrights and Other Related
“M” of McDonalds, the apple of iPhone Rights, the original jurisdiction of the DG is
transferred to the the BCOR.
If you want to apply for a trademark, if you want to open an 2. Accept, review and decide on applications for
establishment or a clothing line, go to the Bureau of the accreditation of collective management organizations
Trademarks. or similar entities
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3. Conduct studies and researches in the field of

b. Cancellation of trademarks and patents
copyright and related rights
c. Petitions for compulsory licensing of
4. Provide other copyright and related rights
patents
service and charge reasonable fees therefor
2. Exercise original jurisdiction in administrative
This is encompassing. But can you see
complaints for administrative complaints for
anything about registration here? None. You will
violations of laws involving intellectual property
understand that better later.
rights where the total damages claimed are not
less than P200,000
Let’s go to the Bureau of Legal Affairs (BLA) which is the
3. Hold and punish for contempt all those who
quasi-‐judicial body in the IPO.
disregard orders or writs issued in the court of the
proceedings
Section 10. The Bureau of Legal Affairs. -‐ The Bureau of
4. After formal investigation, impose administrative
Legal Affairs shall have the following functions:
penalties
These are the general functions of the BLA. If you want to
10.1. Hear and decide opposition to the application for
be specific, you look at the provision itself. Marami pa,
registration of marks; cancellation of trademarks; subject
Section 10 is very long.
to the provisions of Section 64, cancellation of patents,
utility models, and industrial designs; and petitions for
Section 10.2 (b) After formal investigation, the Director for
compulsory licensing of patents;
Legal Affairs may impose one (1) or more of the following
administrative penalties:
Let’s say X goes to the Bureau of Trademarks and he wants (i) The issuance of a cease and desist order which
to register a particular trademark. Y found out about it. shall specify the acts that the respondent shall cease and
Apparently, it was Y who created the trademark. He wants desist from and shall require him to submit a compliance
to oppose the application of registration with the BT. report within a reasonable time which shall be fixed in the
Where should Y go to oppose? He should go to the BLA and order;
not with the BT. (ii) The acceptance of a voluntary assurance of
compliance or discontinuance as may be imposed. Such
What if the trademark registration has already been issued? voluntary assurance may include one or more of the
Can Y still oppose? No more. He can file for cancellation following:
with the same office – BLA. (1) An assurance to comply with the provisions of
the intellectual property law violated;
What else does the BLA do? (2) An assurance to refrain from engaging in
unlawful and unfair acts and practices subject of
Section 10.2. (a) Exercise original jurisdiction in the formal investigation;
administrative complaints for violations of laws involving (3) An assurance to recall, replace, repair, or
intellectual property rights: Provided, That its jurisdiction refund the money value of defective goods
is limited to complaints where the total damages claimed distributed in commerce; and
are not less than Two hundred thousand pesos (P200,000): (4) An assurance to reimburse the complainant
Provided further, That availment of the provisional the expenses and costs incurred in prosecuting
remedies may be granted in accordance with the Rules of the case in the Bureau of Legal Affairs.
Court. The Director of Legal Affairs shall have the power The Director of Legal Affairs may also require the
to hold and punish for contempt all those who disregard respondent to submit periodic compliance reports and file
orders or writs issued in the course of the proceedings. a bond to guarantee compliance of his undertaking;
(iii) The condemnation or seizure of products
Take note, administrative complaints ha. The total damages which are subject of the offense. The goods seized
claimed are not less than P200,000. If less than P200,000, hereunder shall be disposed of in such manner as may be
then the catch-‐all body takes jurisdiction which is the RTC. deemed appropriate by the Director of Legal Affairs, such
as by sale, donation to distressed local governments or to
Summary of BLA’s general functions: charitable or relief institutions, exportation, recycling into
1. Hear and decide other goods, or any combination thereof, under such
a. Opposition to the application for guidelines as he may provide;
registration of marks (iv) The forfeiture of paraphernalia and all real
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and personal properties which have been used in the design registration, or mark or any right, title or interest
commission of the offense; therein during their employment and for one (1) year
(v) The imposition of administrative fines in such thereafter. (Sec. 77, R.A. No. 165a)
amount as deemed reasonable by the Director of Legal
Affairs, which shall in no case be less than Five thousand Can the employees of the IPO apply for a patent or
pesos (P5,000) nor more than One hundred fifty thousand trademark?
pesos (P150,000). In addition, an additional fine of not No. They cannot during their employment and for one year
more than One thousand pesos (P1,000) shall be imposed thereafter.
for each day of continuing violation;
(vi) The cancellation of any permit, license, If the officer or employee is a lawyer, he cannot act as an
authority, or registration which may have been granted by attorney or patent agent of an application for the grant of
the Office, or the suspension of the validity thereof for patent, for the registration of a utility model, etc.
such period of time as the Director of Legal Affairs may
deem reasonable which shall not exceed one (1) year; Note: All officers and employees cannot acquire any mark,
(vii) The withholding of any permit, license, patent or registration of utility model. Exception:
authority, or registration which is being secured by the Hereditary succession.
respondent from the Office;
(viii) The assessment of damages; You know the difference? He cannot apply by will. Meaning,
(ix) Censure; and the testator cannot say na “Oh DG of the IPO, sayo na yung
(x) Other analogous penalties or sanctions. (Secs. patent ko.” This is not allowed. If the father of DG of the
6, 7, 8, and 9, Executive Order No. 913 [1983]a) IPO dies and he has an invention pala with patent, then the
DG can inherit it by operation of law.
10.3. The Director General may by Regulations establish
the procedure to govern the implementation of this Those are the initial provisions. Let’s now go to the
Section. (n) different intellectual property rights.
Note: Not read in class. Added for review purposes. PATENT
Let’s jump to Section 17.

What is a patent?
Section 17. Publication of Laws and Regulations. -‐ The
A grant made by the government to an inventor, conveying
Director General shall cause to be printed and make
and securing to him the exclusive right to make use of his
available for distribution, pamphlet copies of this Act,
invention for a given period.
other pertinent laws, executive orders and information
circulars relating to matters within the jurisdiction of the
Again, you have to know the difference between the
Office. (Sec. 5, R.A. No. 165a)
invention itself and the rights in relation to that invention. If
the inventor makes a robot which can do everything and he
Anything issued by the IPO should be published. Any law
keeps it to himself, then that is his business. If he wants to
that is related to the intellectual property shall be
be the only one to enjoy it, then that’s his business.
published. It shall be the DG who shall cause it to be printed
and make available for distribution. We also have the IPO
If you are the inventor, would you like to show it to the
website (http://www.ipophil.gov.ph) which is very helpful.
world that you have invented something? Do you want to
make profit out from it? Of course, yes, diba? Without a
Section 18. The IPO Gazette. -‐ All matters required to be
patent, that invention can be copied. Then you may lose the
published under this Act shall be published in the Office's
exclusivity of your invention. To protect yourself from
own publication to be known as the IPO Gazette. (n)
infringement from others, you have to apply for a patent.
Therefore, now, if he has the patent, generally, he has the
Section 19. Disqualification of Officers and Employees of exclusive right to make use of it but it is only for a period.
the Office. -‐ All officers and employees of the Office shall not Patent is not permanent, it is only given for a limited period
apply or act as an attorney or patent agent of an application of time.
for a grant of patent, for the registration of a utility model,
industrial design or mark nor acquire, except by hereditary Can you go to the BP and say that you want to register
succession, any patent or utility model,
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everything? No. For something to be patentable, it must earlier application: Provided further, That the applicant or
comply with Section 21. the inventor identified in both applications are not one
and the same. (Sec. 9, R.A. No. 165a)
Section 21. Patentable Inventions. -‐ Any technical solution
of a problem in any field of human activity which is new, What is prior art? Everything which has been made
involves an inventive step and is industrially applicable available to the public anywhere in the world, before the
shall be Patentable. It may be, or may relate to, a product, filing date or the priority date of the application claiming
or process, or an improvement of any of the foregoing. the invention.
(Sec. 7, R.A. No. 165a)
There’s this case where one woman claims to have a patent
What is patentable? to powder puffs. It is something that you use to get
Any technical solution of a problem in any field of human powder – it could be round, square, etc. This Filipina
activity which is: woman claims to have a patent over it that she was the one
1. New (novel) who invented it. Is it patentable? Is it new? Diba sa panahon
2. Involves an inventive step pa ni Cleopatra, nagme-‐make up na siya? So it cannot be
3. Industrially applicable patented because it is already existing. It is no longer new.
(Note: 1-‐3 are the three requisites for patentability) You will learn more about this when we discuss the cases.
What can be patented? It may be, or may relate to: That is why the first role of Bureau of Patents is to search
 A product similar inventions of the alleged invention around the
Example: Robot world. If there is, nawala na ang requisite the new.
 A process
Example: Turning stone to gold The second requisite is inventive step.
 An improvement of a product or process
Example: A gadget invented by X and it is Section 26. Inventive Step. -‐ An invention involves an
improved by Y in a sense that the gadget If X used this
inventive stepthermos,
if, havingdo you knowtohow
regard to use
prior art, this?
it isDoes
not
can now perform other things this havetoanainventive
obvious step? None.
person skilled in theIfart
youatknow how to
the time of use
the
something
filing date by
or simply
prioritylooking at the
date of it, there is no inventive
application claimingstep.
the
Section 23 tells us what is not new. Kasi, diba for something You already
invention. (n)know.
to be patentable, it must be new.
But if you encounter something and you ask “What is this?
Section 23. Novelty. -‐ An invention shall not be considered What does it do? What is its function? How can I use this?”
new if it forms part of a prior art. (Sec. 9, R.A. No. 165a) Then, there is an indication that there is an inventive step.
What is not new or novel? Section 23 does not tell us what Inventive step does not refer to you and me. If it is a
is “new or novel” but rather what is “NOT new or novel.” It gadget, you show it to an engineer or to a technician. If he
says that an invention shall not be considered new if it does not know how to use it, there is inventive step. Again,
forms part of a prior art. it does not refer to ordinary people like us who are not
skilled in that particular art. Perhaps, for us, everything has
Section 24. Prior Art. -‐ Prior art shall consist of: an inventive step. The skilled person/s should not know
24.1. Everything which has been made available to how to use it.
the public anywhere in the world, before the filing date or
the priority date of the application claiming the invention; The third requisite is industrial applicability.
and
24.2. The whole contents of an application for a Section 27. Industrial Applicability. -‐ An invention that can be
patent, utility model, or industrial design registration, produced and used in any industry shall be industrially
published in accordance with this Act, filed or effective in applicable. (n)
the Philippines, with a filing or priority date that is earlier
than the filing or priority date of the application: Provided,
That the application which has validly claimed the filing
date of an earlier application under Section 31 of this Act,
shall be prior art with effect as of the filing date of such
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We have here a drug that cures pimples. It

You invent something that is so new and it’s difficult to is discovered that this drug has a new
figure out but it cannot be used. If it cannot be used, then it form or a property on it. Even though
cannot be patented. You can only look at it and you merely there’s a new form or property, the only
firgure it out, it cannot be patented. Perhaps, it can be thing that it does is that it only cures
copyrighted. pimples and nothing else. Since there is
already an existing drug, the new one
September 24, 2014 does not have an inventive step.
2. Mere discovery of any new property or new use for
We already looked at the requisites of patentability. Section a known substance
23 tells us that if it does not form part of prior art, it is not The perfect example for this is
new or novel. Under Section 24, prior art is defined. glutathione. Glutathione is actually for
curing the liver but they discover that it
The said provision also provides that prior art refers to the can make your skin whiter so it is a
whole contents of an application for a patent. It means discovery of a new use for a known
that it doesn’t have to be something that already exist substance. Is there an inventive step? Can
anywhere in the world. If there is an application for that you register the new use of the
invention, product or process filed with the IPO and glutathione? No.
published in the IPO gazette, that is already considered as 3. The mere use of a known process unless such
prior art. Just make sure that the applicant or the inventor known process results in a new product that
identified in both applications are not one and the same. employes at least one new reactant
Just understand this.
Situation: X applied for a patent. The patent office searches
for prior art and then it discovers that there is already an The third requisite is industrial applicability. It’s very easy to
application for the same invention. So it’s similar – earlier understand.
made than the one applied for and the inventors are
different. The first requisite, which is novel or new, is no Let’s go to what cannot be patented despite the presence
longer present. of the three requisites.
Let’s go back to inventive step. Section 26 has a new Section 22. Non-‐Patentable Inventions. -‐ The following shall
addition, amended by RA 9502 (Cheaper Medicines Act) be excluded from patent protection:
which is now 26.2. You know now that these amendments Discoveries, scientific theories and mathematical methods;
to IPC have something to do with drugs and medicines. Schemes, rules and methods of performing mental acts, playing
games or doing business, and programs for computers;
Section 26.2. In the case of drugs and medicines, there is Methods for treatment of the human or animal body by surgery
no inventive step if the invention results from the mere or therapy and diagnostic methods practiced on the human or
discovery of a new form or new property of a known animal body. This provision shall not apply to products and
substance which does not result in the enhancement of composition for use in any of these methods;
the known efficacy of that substance, or the mere Plant varieties or animal breeds or essentially biological
discovery of any new property or new use for a known process for the production of plants or animals. This provision
substance, or the mere use of a known process unless such shall not apply to micro-‐
known process results in a new product that employs at
least one new reactant.
Note: As amended by Section 6 of RA 9502 organismsand non-‐biologicaland microbiological

processes.
In the case of durgs and medicines, there is no inventive Provisions under this subsection shall not preclude Congress to
step if the invention results from the: consider the enactment of a law providing sui generis
1. Mere discovery of a new form or new property of a protection of plant varieties and animal breeds and a system of
known substance which does not result in the community intellectual rights protection.
enhancement of the known efficacy of that 22.5. Aesthetic creations; and
substance
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22.6. Anything which is contrary to public order or Bar Question (1989): X invented a bogus coin detector
morality. (Sec. 8, R.A. No. 165a) which can be used exclusively on self-‐operating gambling
devices otherwise known as the -‐-‐-‐. Can X apply a patent for
The following cannot be patented: the bogus coin detector?
1. Discoveries, scientific theories and matemathical Suggested answer: No, X cannot because it is against public
methods policy. The operation of the self-‐operating gambling device
We already talked about this. Discoveries is a criminal offense in our country. The invention, if
are not inventions. patented, would be one against public policy.
2. Schemes, rules and methods of performing mental
acts, playing games or doing business, and Bar Question (1988): X invented a method of improving the
programs for computers tenderness of meat by injecting an enzyme solution to the
What is a scheme? Rules and methods – animal before it is slaughtered. Is the invention patentable?
Let’s say that the Labor Department Suggested answer: Yes, it is a process invented directed to
comes out with rules and regulations, is it improving a commercial product. You back up your answer
a process? Anyway, it is still there. with: In general, an invention possessing the following
Computer programs cannot be patented. requisites may be patented: novelty, inventive step and
3. Methods for treatment of the human or animal industrial applicability. This is under the old law because
body by surgery or therapy and diagnostic this is 1988. Take note that RA 8293 came out only in 1998.
methods practiced on the human or animal body.
This provision shall not apply to products Bar Question: In an action for infringement of patent, the
and composition for use in any of these alleged infringer defended himself by stating that: 1. The
methods. patent issued by the Patent Office was not really an
4. Plant varieties or animal breeds or essentially invention that is patentable and 2. He has no intent to
biological process for the production of plants or infringe.
animals. No answer as we will still discuss infringement.
How many breeds of dogs do we have?
Can the new breed be patented? No. But Who has a right to a patent? Who can apply to a patent and
this provision shall not apply to micro-‐ who can be granted one?
organisms and non-‐biological and
microbiological processes. Section 28. Right to a Patent. -‐ The right to a patent
5. Aesthetic creations belongs to the inventor, his heirs, or assigns. When two (2)
Why do you think are they not patentable? or more persons have jointly made an invention, the right
What is an aesthetic creation? An aesthetic to a patent shall belong to them jointly.
creation is something that you admire. A
work of art is an aesthetic creation. It The right to a patent belongs to the:
cannot be used so there is no industrial 1. Inventor
applicability, thus it cannot be patented. When he applies for a patent for his
6. Anything which is contrary to public order or product or process, he must show that he
morality is the inventor.
The thing is, of all the enumeration (1-‐6), 2. His heirs or assigns
this is the one that always comes out of If the inventor is already dead.
the bar. It’s very easy to memorize so
memorize  When 2 or more persons have jointly made an invention,
the right to a patent shall belong to them jointly. If two
Bar Question: What are the inventions that are patentable? people invented a product and a patent is issued for it, then
Just cite Section 21. Any technical solution of a problem in the names of the two inventors will be on the patent.
any field of human activity which is new, involves an
inventive step and is industrially applicable shall be Section 29. First to File Rule. -‐ If two (2) or more persons have
patentable. It may be, or may relate to, a product, or made the invention separately and independently of each
process, or an improvement of any of the foregoing. other, the right to the patent shall belong to the person
who filed an application for such invention, or where two
or more applications are filed for the same
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invention, to the applicant who has the earliest filing date What about employment? This is very common nowadays
or, the earliest priority date. noh. We have research and development in big companies
and drug companies. They hire employees to create new
But if the invention was made separately or independently drugs.
of each other, the right of the patent shall belong to the
person who filed an application for such invention. Section 30.2 says that in case the employee made the
This means that Product 1 is made by A and Product 2 is invention in the course of his employment contract, the
made by B. A applies a patent for his product but B did not patent shall belong to:
apply for his invention. The products (1 and 2) are both the a. The employee -‐ if the inventive activity is not a part
same. Who will be granted the patent? A, only the one who of his regular duties even if the employee uses the
applied for a patent. If you did not apply, then sorry nalang. time, facilities and materials of the employer
You cannot be granted one. You may own your invention Let’s say the employee is working for a
but you cannot own the patent. drug company. His job is to come up with
new drugs or cure. At the same time,
Where two or more applications are filed for the same while he is doing his work, he invented a
invention, to the applicant who has the earliest filing date form of drug for falling hair. He was able
or, the earliest priority date. to invent something to prevent hair from
A applied for Product 1 and B applied for Product 2. Then falling so he shall own the patent even
the patent shall belong to the applicant who has the though he was able to invent it while
earliest filing date or priority date. The earliest filing date is working there and while using the
very easy to understand – who filed first? For earliest facilities of the employer.
priority date, we will look at this later. b. The employer -‐ if the invention is the result of the
performance of his regularly-‐assigned duties,
What if there is an invention pursuant to a commission? unless there is an agreement, express or implied,
to the contrary
Section 30. Inventions Created Pursuant to a Commission. -‐ This is the reason why drug companies
30.1. The person who commissions the work shall own the own the patent to their medicines even
patent, unless otherwise provided in the contract. though these medicines were invented by
their employees in the R and D. The names
30.2. In case the employee made the invention in the of the employees do not appear diba but
course of his employment contract, the patent shall the name of the drug companies.
belong to:
(a) The employee, if the inventive activity is not a Let’s now go to right of priority.
part of his regular duties even if the employee uses the
time, facilities and materials of the employer. Section 31. Right of Priority. . -‐ An application for patent
(b) The employer, if the invention is the result of filed by any person who has previously applied for the
the performance of his regularly-‐assigned duties, unless same invention in another country which by treaty,
there is an agreement, express or implied, to the contrary. convention, or law affords similar privileges to Filipino
(n) citizens, shall be considered as filed as of the date of filing
the foreign application: Provided, That: (a) the local
X says to Y “I want you to invent a robot that will clean the application expressly claims priority; (b) it is filed within
house, dry the car, etc.” Who owns the patent? According twelve (12) months from the date the earliest foreign
to Section 30, the person who commissions the work shall application was filed; and (c) a certified copy of the
own the patent. Once the robot is created, X is the one foreign application together with an English translation is
who can apply for the patent. filed within six (6) months from the date of filing in the
Philippines. (Sec. 15, R.A. No. 165a)
Excpetion: Unless otherwise provided in the contract.
If Y will say “Okay, I will create the robot but the patent An application for patent filed by any person who has
shall belong to me.” Then no problem. There’s nothing previously applied for the same invention in another
wrong with this. country which by treaty, convention, or law affords similar
privileges to Filipino citizens, shall be considered as filed as
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of the date of filing the foreign application. This is what you

1. The invention is not patentable under Sections 21
call as the earliest priority date.
and 22
It is not new, it does not have an inventive
Let’s say we have X who went to the Bureau of Patents to step and it is not industrially applicable, it
apply for a patent for his invention. He went there on is contrary to morals, it is a discovery, a
January 10, 2014. Y went to BP on April 10, 2014 applying for scheme, or a rule, etc. Just check the
a patent for the exactly the same product. According to Y, provisions we already discussed.
he is the true inventor. Who has the earliest filing date? 2. The applicant is not the inventor or the heirs or
Obviously, si X. We already looked at the earlier provision assigns under Section 28
which says that where two inventors applying a patent for Y will say that “I am the real inventor and
the same product, the patent shall belong to the one with you just stole it from me.” Of course, Y has
an earlier filing date or the earliest priority date. to prove it.
What if itong si Y is German? He actually applied for a Where do you apply for patent? Bureau of Patents.
patent for the same product in Germany (German BP) in
November 10, 2013. He has a pending application in Section 32. The Application. -‐ 32.1. The patent application
Germany for that particular product. The provision says shall be in Filipino or English and shall contain the
“provided that the local application expressly claims following:
priority.” He must, in his application, say that “I must be (a) A request for the grant of a patent;
given priority because I have an application for this product (b) A description of the invention;
in Germany filed within 12 months from the date the earliest (c) Drawings necessary for the understanding of
foreign application was filed. So from November to April, 5 the invention;
months lang. Provided also that a certified copy of the (d) One or more claims; and
foreign application together with an English translation is (e) An abstract.
filed within 6 months from the date of filing in the
Philippines. Now Y has an earliest filing priority date 32.2. No patent may be granted unless the application
because he has a previous foreign application. identifies the inventor. If the applicant is not the inventor,
the Office may require him to submit said authority. (Sec.
It doesn’t matter if the patent was already issued to Y or 13, R.A. No. 165a)
not provided that the following requisites are present:
a. the local application expressly claims priority According to Section 32, the application for patent shall be
b. it is filed within twelve (12) months from the date in Filipino or English. It shall contain the following:
the earliest foreign application was filed a. A request for the grant of a patent
c. a certified copy of the foreign application together b. A description of the invention
with an English translation is filed within six (6) Describe it. It could be a drawing or a
months from the date of filing in the Philippines protoype or a model, whatever.
c. Drawings necessary for the understanding of the
Section 20.6. "Priority date" means the date of filing of the invention
foreign application for the same invention referred to in d. One or more claims
Section 31 of this Act. (n) e. An abstract
Again, priority date refers to the date of filing of the foreign Take note that under Section 32.2, no patent may be
application for the same invention. granted unless the application identifies the inventor. You
cannot apply for a patent and not identify the inventor.
Now, what case can be filed to an applicant for a patent? In Unlike in copyright wherein pwede ang anonymous authors
our example, X and Y applied for a patent for the same or writers. For patents, inventors must be identified.
product. Y claims that he is the inventor of this product,
what can he do? File an opposition to the application for If the applicant is not the inventor, the Office may require
registration of patent. Where? Bureau of Legal Affairs. him to submit said authority. What authority? The authority
to apply for the inventor’s invention. If he is an heir or
What are the grounds that are available in opposition assignee, then proof of his authority.
cases?
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What if the applicant is not a resident of the Philippines?

course, there are certain exceptions. Are duplicitous
information allowed? Of course yes unless they are
Section 33. Appointment of Agent or Representative. -‐ An quashed. But anyway…
applicant who is not a resident of the Philippines must
appoint and maintain a resident agent or representative in Section 38. Unity of Invention. -‐ 38.1. The application shall
the Philippines upon whom notice or process for judicial relate to one invention only or to a group of inventions
or administrative procedure relating to the application for forming a single general inventive concept.
patent or the patent may be served. (Sec. 11, R.A. No. 165a)
An application under Section 35.1 for a patent shall relate
He must appoint for a resident agent or representative in to:
the Philippines. Why? Because the application process is 1. One invention only
very tedious. Somebody has to keep on going back to the A patent application must not be
BP. duplicitous.
2. A group of inventions forming a single general
xxx upon whom notice or process for judicial or inventive concept
administrative procedure relating to the application for
patent or the patent may be served. He must make sure Section 38.2. If several independent inventions which do
that there’s an address upon which the patent office can not form a single general inventive concept are claimed in
serve all its orders, etc. one application, the Director may require that the
application be restricted to a single invention. A later
Section 35 talks about the disclosure of the invention. application filed for an invention divided out shall be
considered as having been filed on the same day as the
Section 35. Disclosure and Description of the Invention. -‐ first application: Provided, That the later application is
35.1. Disclosure. -‐ The application shall disclose the filed within four (4) months after the requirement to
invention in a manner sufficiently clear and complete for it divide becomes final or within such additional time, not
to be carried out by a person skilled in the art. Where the exceeding four (4) months, as may be granted: Provided
application concerns a microbiological process or the further, That each divisional application shall not go
product thereof and involves the use of a micro-‐organism beyond the disclosure in the initial application.
which cannot be sufficiently disclosed in the application in
such a way as to enable the invention to be carried out by What if several several inventions which do not form a
a person skilled in the art, and such material is not single general inventive concept are claimed in one
available to the public, the application shall be application? What if the application is duplicitous? Ang
supplemented by a deposit of such material with an daming inventions like this one is for electric fan, vacuum
international depository institution. cleaner, etc.?
The Director may require that the application be restricted
35.2. Description. -‐ The Regulations shall prescribe the in one application. The Director of Patents ha. If the
contents of the description and the order of presentation. Director says, you have to chop chop your application like
(Sec. 14, R.A. No. 165a) one application for each product or invention, then do it.
Note: Not read in class. Added for review purposes. A later application filed for an invention divided out shall
be considered as having been filed on the same day as the
When you apply for a patent, the the application shall first application. Even if you have to chop chop your
disclose the invention in a manner sufficiently clear and application, you will still retain your original filing date.
complete for it to be carried out by a person skilled in the
art. So you must include your instruction – how to use the Provided, That the later application is filed within four (4)
gadget or invention. It doesn’t have to be understood by months after the requirement to divide becomes final or
you and me but it must be understood by a person skilled in within such additional time, not exceeding four (4)
the art. If it’s an engineering thing, then by the engineer. If months, as may be granted: Provided further, That each
it is a chemical thing, then a chemist. divisional application shall not go beyond the disclosure in
the initial application.
Have you taken up duplicitous information? Under the
Rules, an information must only contain one offense. Of 38.3. The fact that a patent has been granted on an
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application that did not comply with the requirement of If you go there and say “I want to apply for a patent”, you
unity of invention shall not be a ground to cancel the don’t get your filing date yet. The filing date will be
patent. (Sec. 17, R.A. No. 165a) considered as the date of receipt of those three even if you
have not yet submitted your entire application. Remember
This means na kung nakalusot ang duplicitous information, in our earlier discussion that the application must include
then that is not a ground for cancellation. The patent shall this and that? As long as you submit those three
be granted for this and that. (enumerated above), then you can get your filing date.
When can the duplicitous application be chop chop? If the Section 40.2. If any of these elements is not submitted
Director orders the applicant to do so. within the period set by the Regulations, the application
shall be considered withdrawn. (n)
Section 39. Information Concerning Corresponding
Foreign Application for Patents. -‐ The applicant shall, at the What is now the job of the BP? Classification and search.
request of the Director, furnish him with the date and
number of any application for a patent filed by him Section 43. Classification and Search. -‐ An application that has
abroad, hereafter referred to as the "foreign application," complied with the formal requirements shall be classified
relating to the same or essentially the same invention as and a search conducted to determine the prior art. (n)
that claimed in the application filed with the Office and
other documents relating to the foreign application. (n)
An application that has complied with the formal
Let’s say si Y lang ang nag-‐apply and walang X sa situation. requirements (complete application – all of those required
(Referring to the previous example where Y is a German) Y are there), it shall be classified and a search conducted to
has a foreign application and an application in the determine a prior art.
Philippines. Then Y must give the details of his application
and inform the Bureau of Patents that he also has a foreign The search is the first step. After the search, there will be
application. publication of the application.
Let’s go to the procedure for a grant of a patent. Section 44. Publication of Patent Application. -‐ 44.1. The
patent application shall be published in the IPO Gazette
Section 40. Filing Date Requirements. -‐ 40.1. The filing date together with a search document established by or on
of a patent application shall be the date of receipt by the behalf of the Office citing any documents that reflect prior
Office of at least the following elements: art, after the expiration of eighteen ( 18) months from the
(a) An express or implicit indication that a filing date or priority date.
Philippine patent is sought;
(b) Information identifying the applicant; and Ang tagal noh? The search period is 18 months. After the
(c) Description of the invention and one (1) or search period, the patent application will be published in
more claims in Filipino or English. the IPO Gazette.
40.2. If any of these elements is not submitted within the Section 44.2. After publication of a patent application, any
period set by the Regulations, the application shall be interested party may inspect the application documents
considered withdrawn. (n) filed with the Office.
What is a filing date? According to Section 40, it shall be the

Nandyan na yung mga drawings, formula, etc. So any
date of receipt by the Office of at least the following
person can inspect the application.
elements:
a. An express or implicit indication that a Philippine 44.3. The Director General subject to the approval of the
patent is sought Secretary of Trade and Industry, may prohibit or restrict
b. Information identifying the applicant the publication of an application, if in his opinion, to do so
c. Description of the invention and one (1) or more would be prejudicial to the national security and interests
claims in Filipino or English. of the Republic of the Philippines. (n)
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Take note that we are not talking about the Director of

been granted a patent and has the rights of a patent holder
Patents but the Director General (DG) himself. Anything
under Section 76.
that has to do with that (prejudicial to national security)
can be prevented to be published. It is the DG and the STI
His rights may be exercised against any person who,
who will decide on that.
without his authorization, exercised any of the rights
conferred under Section 71 of this Act... (This means that
Section 45. Confidentiality Before Publication. -‐ A patent
Section 71 gives us the rights of the patent holder. What
application, which has not yet been published, and all
can he do once he is a patent holder.) in relation to the
related documents, shall not be made available for
invention claimed in the published patent application, as if
inspection without the consent of the applicant. (n)
a patent had been granted for that invention. So there is
already a protection once the application is published.
It is only the publication which will make the applicant’s
invention as public.
The rights may be exercised by the said person (the one
who copied or infringed on the product which is subject of
September 25, 2014
the application) who had:
a. Actual knowledge that the invention that he was
What is being published? The application including all the
using was the subject matter of a published
attachments, the drawings, the instructions.
application; or
b. Received written notice that the invention that he
Section 45 says that before publication, everything is
was using was the subject matter of a published
confidential. Nobody can inspect what was submitted in
application being identified in the said notice by
the Bureau of Patents without the consent of the person
its serial number.
who applied for the patent.
What happens to that inventor who has a pending patent
Take note of Section 46.
application? According to the same provision, the action
may not be filed until after the grant of a patent on the
Section 46. Rights Conferred by a Patent Application After published application and within four (4) years from the
Publication. -‐ The applicant shall have all the rights of a commission of the acts complained of.
patentee under Section 76 against any person who,
without his authorization, exercised any of the rights “not be filed until after the grant of a patent”
conferred under Section 71 of this Act in relation to the To say it in layman’s term, he has the reason for file already.
invention claimed in the published patent application, as if He has a ground – somebody copied his product. But can he
a patent had been granted for that invention: Provided, file the proper case against that person? No. He can only do
That the said person had: so once that patent is issued. He has to wait for that patent
46.1. Actual knowledge that the invention that he before he can have a right of action. (cause of action vs.
was using was the subject matter of a published right of action)
application; or
46.2. Received written notice that the invention “within four (4) years from the commission of the acts
that he was using was the subject matter of a published complained of”
application being identified in the said notice by its serial If the grant of the patent takes longer than four years, nag-‐
number: Provided, That the action may not be filed until prescribe na. So that is the implication.
after the grant of a patent on the published application
and within four (4) years from the commission of the acts Section 47. Observation by Third Parties. -‐ Following the
complained of. (n) publication of the patent application, any person may
present observations in writing concerning the
After the application is published, everything is exposed to patentability of the invention. Such observations shall be
the world – the product, the instruction, the drawings so it communicated to the applicant who may comment on
can be easily copied diba? them. The Office shall acknowledge and put such
observations and comment in the file of the application to
So Section 46 provides that the applicant shall have all the which it relates. (n)
rights of a patentee. It’s as if he is already a person who has
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What happens after the publication of the patent

A patent shall take effect on the date of the publication of
application? Any person may present observations in
the grant of the patent in the IPO Gazette.
writing concerning the patentability of the invention.
Perhaps the applicant is already holding that patent issued
This is not really oppositions to the applications,
by the Bureau of Patents like he is given a certificate but
observations lang that the inventor’s product is not really
that does not make the patent effective yet. It shall take
new because there already exist a similar product. The
effect on the date the grant of the patent is published on
applicant can then make a comment and say “Yes. I know
the IPO Gazette.
but my product is not the same with that existing product
that you are talking about.” This is not an actual case.
The BP can also refuse to grant the patent even if there is
Observations and comments lang which can be submitted
no opposition. For example, when the application does not
to the BP.
meet the requirements of RA 8293 diba? What can the
application do?
Why is it that a foreign applicant should leave an agent here
in the Philippines? Check Section 48.
Section 51. Refusal of the Application. -‐ 51.1. The final order of
refusal of the examiner to grant the patent shall be
Section 48. Request for Substantive Examination. -‐ 48.1.
appealable to the Director in accordance with this Act.
The application shall be deemed withdrawn unless within
six (6) months from the date of publication under Section It is the BP Examiner who will grant or refuse so you appeal
41, a written request to determine whether a patent with the Director of the BP. If the patent is refused, the
application meets the requirements of Sections 21 to 27 applicant can appeal the denial to the Director of Patents.
and Sections 32 to 39 and the fees have been paid on time.
The first publication is the publication of the application.
48.2. Withdrawal of the request for examination shall be The second publication is the publication of the grant of the
irrevocable and shall not authorize the refund of any fee. patent.
(n)
Section 52. Publication Upon Grant of Patent. -‐ 52.1. The
Can an application be amended? According to Section 49, grant of the patent together with other related
yes. information shall be published in the IPO Gazette within
the time prescribed by the Regulations.
Section 49. Amendment of Application. -‐ An applicant may
amend the patent application during examination: 52.2. Any interested party may inspect the complete
Provided, That such amendment shall not include new description, claims, and drawings of the patent on file with
matter outside the scope of the disclosure contained in the the Office. (Sec. 18, R.A. No. 165a)
application as filed. (n)
Section 53. Contents of Patent. -‐ The patent shall be issued
We have the search, examination, publication, in the name of the Republic of the Philippines under the
observations, comments and then the grant of the patent. seal of the Office and shall be signed by the Director, and
registered together with the description, claims, and
Section 50. Grant of Patent. -‐ 50.1. If the application meets drawings, if any, in books and records of the Office. (Secs.
the requirements of this Act, the Office shall grant the 19 and 20, R.A. No. 165a)
patent: Provided, That all the fees are paid on time.
What does a patent look like? It looks like a certificate
50.2. If the required fees for grant and printing are not issued in the name of the Republic of the Philippines.
paid in due time, the application shall be deemed to be There’s a seal of the IPO signed by the Director of Patents
withdrawn. and registered together with the description, claims,
drawings, if any, in books and records of the IPO.
50.3. A patent shall take effect on the date of the
publication of the grant of the patent in the IPO Gazette. Section 54. Term of Patent. -‐ The term of a patent shall be
(Sec. 18, R.A. No. 165a) twenty (20) years from the filing date of the application.
(Sec. 21, R.A. No. 165a)
When shall the patent take effect?
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What is the term of the patent? 20 years from the date of

filing of the application and not from the date of the
What if the patent holder feels pressured for holding the
effectivity. If it takes 10 years from publication of the
patent like his life is threatened or he is not in peace? Can
application to the grant, then the effectivity of the patent is
he surrender the patent? According to Section 56, yes.
10 years nalang. Take note of the period.
Section 56. Surrender of Patent. -‐ 56.1. The owner of the
patent, with the consent of all persons having grants or
Section 55. Annual Fees. -‐ 55.1. To maintain the patent
licenses or other right, title or interest in and to the patent
application or patent, an annual fee shall be paid upon the
and the invention covered thereby, which have been
expiration of four (4) years from the date the application
recorded in the Office, may surrender his patent or any
was published pursuant to Section 44 hereof, and on each
claim or claims forming part thereof to the Office for
subsequent anniversary of such date. Payment may be
cancellation.
made within three (3) months before the due date. The
obligation to pay the annual fees shall terminate should
He can surrender but he must ask the consent of certain
the application be withdrawn, refused, or cancelled.
parties.
If you are a patent holder, can you just forget about the IPO
once you are granted the patent? No. Under Section 55.1, Can somebody oppose the surrender of the patent? Yes.
whether it’s an application or a patent, you have to pay an
annual fee to be paid upon the expiration of the four years 56.2. A person may give notice to the Office of his
from the date the application was published. In other opposition to the surrender of a patent under this section,
words, if you look at the provision, there’s a possibility na it and if he does so, the Bureau shall notify the proprietor of
will take five and a half years (including the search period, the patent and determine the question.
the publication, etc). So by that time, even if wala pang
patent, you have to start paying already. Pay the annual fee What shall the BP do if there is a notice of opposition?
from that period on and then annually. The obligation to Notify the proprietor of the patent and determine the
pay the annual fees shall terminate should the application question.
be withdrawn, refused, or cancelled.
Section 55.2. If the annual fee is not paid, the patent 56.3. If the Office is satisfied that the patent may properly
application shall be deemed withdrawn or the patent
considered as lapsed from the day following the be surrendered, he may accept the offer and, as from the
expiration of the period within which the annual fees were
due. A notice that the application is deemed withdrawn or
day when notice of his acceptance is published in the IPO
the lapse of a patent for non-‐payment of any annual fee
shall be published in the IPO Gazette and the lapse shall be
Gazette, the patent shall cease to have effect, but no
recorded in the Register of the Office.
What if the surrender is accepted by the IPO? When shall
What is the effect if you don’t pay the annual fee? the patent cease to take effect? From the day when notice
The patent application shall be deemed withdrawn or the of IPO’s acceptance is published in the IPO Gazette.
patent considered as lapsed from the day following the
expiration of the period within which the annual fees were We already talked about cancellation of patents. Where is it
due. filed? Bureau of Legal Affairs. If somebody, who is not a
 Application = deemed withdrawn patent holder, wants to have a patent cancelled, he has to
 Patent = lapsed file it with BLA. If the patent holder himself wants to
surrender the patent and wants it to be cancelled, he has to
Section 55.3. A grace period of six (6) months shall be go to the BP. Any oppositions to that will be made to the
granted for the payment of the annual fee, upon payment BP.
of the prescribed surcharge for delayed payment. (Sec. 22,
R.A. No. 165a) Two kinds of cancellations of patents:
1. Filed by someone who is not a patent holder – go
There’s a grace period but you have to pay for the to the BLA
surcharge. 2. Filed by the patent holder – go to the BP
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no request may be made after the expiration of two 2 years

Just like Torren’s Title where there are errors… The patent from the grant of a patent and the change shall not affect
itself could have errors as well. Section 57 provides: the rights of any third party which has relied on the patent,
as published.
Section 57. Correction of Mistakes of the Office. -‐ The
Director shall have the power to correct, without fee, any If there are any changes to the patent, it shall be amended.
mistake in a patent incurred through the fault of the Office The certificate will be published again.
when clearly disclosed in the records thereof, to make the
patent conform to the records. (Sec. 25, R.A. No. 165) What case can be filed against a patent that has already
been granted? Cancellation. Where? BLA. Who can file?
At least, this law makes it simpler for the patent holder Anyone, any interested person. As long as you have the
unlike in birth certificates where one has to go to court. In proper grounds and upon payment of the required fee.
correction of mistakes for patent, the Director has the
power to correct the mistakes made through the fault of Section 61. Cancellation of Patents. -‐ 61.1. Any interested
the IPO without any fee. If there’s a typo in the certificate person may, upon payment of the required fee, petition to
of patent, then it’s easier to amend or correct noh? cancel the patent or any claim thereof, or parts of the
claim, on any of the following grounds:
What about mistake in the application? (a) That what is claimed as the invention is not
new or patentable;
Section 58. Correction of Mistake in the Application. -‐ On (b) That the patent does not disclose the
request of any interested person and payment of the invention in a manner sufficiently clear and complete for it
prescribed fee, the Director is authorized to correct any to be carried out by any person skilled in the art; or
mistake in a patent of a formal and clerical nature, not (c) That the patent is contrary to public order or
incurred through the fault of the Office. (Sec. 26, R.A. No. morality.
165a)
61.2. Where the grounds for cancellation relate to some of
This provision deals with the mistakes not incurred through the claims or parts of the claim, cancellation may be
the fault of the IPO. Under Section 57, it was the fault of effected to such extent only. (Secs. 28 and 29, R.A. No.
the IPO. Ngayon, not through the IPO’s fault but one can 165a)
still go to the IPO and have the mistakes corrected after
paying a minimal fee. What are the grounds?
1. That what is claimed as the invention is not new
Can changes to the patent be made? Yes. or patentable
This ground includes Section 21 and 22.
Section 59. Changes in Patents. -‐ 59.1. The owner of a 2. That the patent does not disclose the invention
patent shall have the right to request the Bureau to make in a manner sufficiently clear and complete for it
the changes in the patent in order to: to be carried out by any person skilled in the art
(a) Limit the extent of the protection conferred by Walang instruction sa invention so how
it; can it be used?
(b) Correct obvious mistakes or to correct clerical 3. That the patent is contrary to public order or
errors; and morality
(c) Correct mistakes or errors, other than those
referred to in letter (b), made in good faith: Provided, That Under Section 61.2, not all the patent will be cancelled but
where the change would result in a broadening of the for a certain claim only.
extent of protection conferred by the patent, no request
may be made after the expiration of two (2) years from What are the requirements if you are the person who is
the grant of a patent and the change shall not affect the filing the cancellation?
rights of any third party which has relied on the patent, as
published. Section 62. Requirement of the Petition. -‐ The petition for
cancellation shall be in writing, verified by the petitioner
What if the change will result in the broadening of the or by any person in his behalf who knows the facts, specify
extent of protection conferred by the patent? It says that the grounds upon which it is based, include a statement of
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the facts to be relied upon, and filed with the Office. the ground is ground number 2 under Section 64 which
Copies of printed publications or of patents of other involves a techincal issue, then the DLA can form a three-‐
countries, and other supporting documents mentioned in man committee. Two of them shall be highly skilled on that
the petition shall be attached thereto, together with the particular field of technology.
translation thereof in English, if not in the English
language. (Sec. 30, R.A. No. 165) If the committee makes a decision, its decisions shall be
appeallable to the DG. All decisions of the BLA are
The petition shall be: appeallable to the DG.
 In writing
 Verified by the person or by any one in his behalf Section 65. Cancellation of the Patent. -‐ 65.1. If the
who knows the facts Committee finds that a case for cancellation has been
Verified – personally known by the affiant proved, it shall order the patent or any specified claim or
and it is true in all its content. The claims thereof cancelled.
petitioner here will state at the end that
he caused the preparation of the petition The patentee, especially if the defect on his patent is very
and that all stated there are true and his minor and it can be cured by amendment, the rule is
own personal knowledge. It is notarized provided under Section 65.1.
and sworn under oath before a notary
public. Section 65. Cancellation of the Patent. -‐ 65.1. If the
 Specify the grounds upon which the petition is Committee finds that a case for cancellation has been
based proved, it shall order the patent or any specified claim or
 Include a statement of the facts claims thereof cancelled.
 Filed with the IPO (the BLA)
Section 65.2. If the Committee finds that, taking into
What is the procedure after the filing? There will be a consideration the amendment made by the patentee
hearing. during the cancellation proceedings, the patent and the
invention to which it relates meet the requirement of this
Section 63. Notice of Hearing. -‐ Upon filing of a petition for Act, it may decide to maintain the patent as amended:
cancellation, the Director of Legal Affairs shall forthwith Provided, That the fee for printing of a new patent is paid
serve notice of the filing thereof upon the patentee and all within the time limit prescribed in the Regulations.
persons having grants or licenses, or any other right, title
or interest in and to the patent and the invention covered 65.3. If the fee for the printing of a new patent is not paid
thereby, as appears of record in the Office, and of notice in due time, the patent should be revoked.
of the date of hearing thereon on such persons and the
petitioner. Notice of the filing of the petition shall be 65.4. If the patent is amended under Subsection 65.2
published in the IPO Gazette. (Sec. 31, R.A. No. 165a) hereof, the Bureau shall, at the same time as it publishes
the mention of the cancellation decision, publish the
Is this like a court case? Well, similar. The BLA is a quasi-‐ abstract, representative claims and drawings indicating
judicial body made up of hearing officers. clearly what the amendments consist of. (n)
Section 64. Committee of Three. -‐ In cases involving highly What is the effect of the cancellation of a patent?
technical issues, on motion of any party, the Director of
Legal Affairs may order that the petition be heard and Section 66. Effect of Cancellation of Patent or Claim. -‐ The
decided by a committee composed of the Director of Legal rights conferred by the patent or any specified claim or
Affairs as chairman and two (2) members who have the claims cancelled shall terminate. Notice of the cancellation
experience or expertise in the field of technology to which shall be published in the IPO Gazette. Unless restrained by
the patent sought to be cancelled relates. The decision of the Director General, the decision or order to cancel by
the committee shall be appealable to the Director General. Director of Legal Affairs shall be immediately executory
(n) even pending appeal. (Sec. 32, R.A. No. 165a)
If the ground for cancellation is merely “contrary to moral

Take note that the decision of the BLA cancelling the
or public policy”, then you do not really need this. But when
patent is appeallable with the DG. But the provision
algene c.
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provides that “unless restrained by the Director General,

one who has the right to apply for whatever reason. The
the decision or order to cancel by Director of Legal Affairs
provision says he can avail of the remedies within three
shall be immediately executory even pending appeal.” This
months from the date the judgment has become final. The
is in consonance with Rule 43 of the Rules of Court.
three months is his window period.
Decisions of quasi-‐judicial bodies are immediately executory
What can he do?
even pending appeal. In other words, the patent is
1. Prosecute the application as his own application
considered cancelled even if the patentee appeals the
cancellation with the DG. in place of the applicant
Here, B can go to the BP and say there to
Let’s go to the remedies of persons with right to a patent. take his application instead that of A.
2. File a new patent application in respect of the
Section 67 talks about a person applying for a patent but he same invention
does not have the right to apply because he is not the
Pabayaan niya si A. He can file bringing
inventor. So who is entitled to the remedy under Section
with him the court judgment that he has
67? The person referred to in Section 29 other than the
applicant. the right to the patent.
3. Request that the application be refused
How do you relate Section 67 (patent application by He can oppose the application of A. This
persons not having the right to a patent) with Section 29 time, he can go to the BLA.
(first to file rule)? 4. Seek cancellation of the patent, if one has already
been issued
Section 67. Patent Application by Persons Not Having the
So file for the cancellation.
Right to a Patent. . -‐ 67.1. If a person referred to in Section
29 other than the applicant, is declared by final court order Note: 1-‐2 Go to the BP; 3-‐4 Go to BLA
or decision as having the right to the patent, such person
may, within three (3) months after the decision has These are the remedies of a person declared by a court to
become final: have a right over the patent for whatever reason.
(a) Prosecute the application as his own
application in place of the applicant;
Section 68 talks about the remedies of the true and actual
(b) File a new patent application in respect of the
same invention; inventor. This person did not even go to the BP to file an
(c) Request that the application be refused; or application. He just finds out later that somebody applied
(d) Seek cancellation of the patent, if one has for a patent for his invention or a patent has been granted
already been issued. for his invention.
67.2. The provisions of Subsection 38.2 shall apply mutatis

mutandis to a new application filed under Subsection 67. Section 68. Remedies of the True and Actual Inventor. -‐ If a
1(b). (n) person, who was deprived of the patent without his
consent or through fraud is declared by final court order
or decision to be the true and actual inventor, the court
What the situation under Section 29? There are two persons shall order for his substitution as patentee, or at the
applying for a patent – A and B. A and B applies a patent for option of the true inventor, cancel the patent, and award
the same invention. Let’s say A was the first to apply. Under actual and other damages in his favor if warranted by the
Section 29, if there are two people applying for a patent for circumstances. (Sec. 33, R.A. No. 165a)
the same product or invention, the one who has a right is
the one who filed first. Who can has the remedy under Section 68?
One who has been deprived of the patent without his
How can B, the second applicant, show to the Bureau of consent or through fraud and is declared by final court
Patents that he is the one who has the right to file? He must order or decision to be the true and actual inventor.
file a case in court for the court to determine whether or
not he has a right to the patent. File a case in court first and The said person has to go to court (referring to the true and
then he will get a judgment from the court that he is the actual inventor of the product, process or invention) and
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the court will declare him as the true and actual inventor of
using, selling or offering for sale, or importing any
the product.
product obtained directly or indirectly from such
process
Take note that the court, where the person files the action,
3. Right to assign, or transfer by succession the
shall order for his substitution as patentee, or at the
patent, and to conclude licensing contracts for the
option of the true inventor, cancel the patent, and award
same
actual and other damages in his favor if warranted by the
This is the right of the patent holder to
circumstances.
dispose. He can assign it, sell it or donate it. He can
also license an entity to manufacture his products.
This time, the court can order the BP to substitute the
applicant or cancel the patent. The court can also award
We talked about about publication of the application, if
damages in favor of the true and actual inventor.
somebody manufactures, uses, offers for sale, etc. his
product that his subject to application, he already has a
Section 70. Time to File Action in Court. -‐ The actions
ground to file an action against that person. Again, the
indicated in Sections 67 and 68 shall be filed within one (1)
right to file is only given to him upon the issuance of the
year from the date of publication made in accordance with
patent. Now that he is a patent holder, then the rights
Sections 44 and 51, respectively. (n)
under Section 71 are exlusive to him and he can sue.
Now, the patent has been issued by the BP. What are the
We also have Section 72 which provides for the limitations
rights now of the patentee? We have section 71.
of the rights of the patent holder.
Section 71. Rights Conferred by Patent. -‐ 71.1. A patent shall
Section 72. Limitations of Patent Rights. -‐ The owner of a
confer on its owner the following exclusive rights:
patent has no right to prevent third parties from
(a) Where the subject matter of a patent is a
performing, without his authorization, the acts referred to
product, to restrain, prohibit and prevent any
in Section 71 hereof in the following circumstances:
unauthorized person or entity from making, using,
xxx
offering for sale, selling or importing that product;
(b) Where the subject matter of a patent is a
Note: This section has been amended by Section 7 of RA 9502.
process, to restrain, prevent or prohibit any unauthorized Check the enumeration below for the new list.
person or entity from using the process, and from
manufacturing, dealing in, using, selling or offering for
What are the limitations fo patent rights?
sale, or importing any product obtained directly or
indirectly from such process.
1. Using a patented product which has been put on
the market in the Philippines by the owner of the
71.2. Patent owners shall also have the right to assign, or
product, or with his express consent, insofar as
transfer by succession the patent, and to conclude
such use is performed after that product has been
licensing contracts for the same. (Sec. 37, R.A. No. 165a)
so put on the said market
Ito yung sinasabi ko. If you are a consumer
The patent holder has the following exclusive rights: and you buy a patented product, then
1. Product: Right to restrain, prohibit and prevent okay diba.
any unauthorized person or entity from making, Provided, That, with regard to drugs and
using, offering for sale, selling or importing that medicines, the limitation on patent rights shall
product apply after a drug or medicine has been
So he is the only one who can make the introduced in the Philippines or anywhere else in
invention. Itong “using,” take note of the the world by the patent owner, or by any party
unathorized person. If you are the consumer who authorized to use the invention
buys the product of the patent holder in a This is an amendment under the Cheaper’s
commercial store, then that is authorized. The Medicines Act. Of course, from the moment the
“using” here refers to unathorized person. drug is sold in the market, it becomes available for
2. Process: Right to restrain, prevent or prohibit everyone.
any unauthorized person or entity from using the Provided, further, That the right to import the
process, and from manufacturing, dealing in, drugs and medicines contemplated in this section
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shall be available to any government agency or

shall be available to any government agency or
any private third party
any private third party
2. Where the act is done privately and on a non-‐
6. Where the invention is used in any ship, vessel,
commercial scale or for a non-‐commercial
aircraft, or land vehicle of any other country
purpose
entering the territory of the Philippines
If the person just invents something for
temporarily or accidentally: Provided, That such
his personal pleasure, then that’s fine. It’s his
invention is used exclusively for the needs of the
business. That’s not a violation of rights of the
ship, vessel, aircraft, or land vehicle and not used
parties. There are just persons who want to copy
for the manufacturing of anything to be sold
or imitate something just for fun or curiousity.
within the Philippines
Provided, That it does not significantly prejudice
the economic interests of the owner of the patent
Take note that under the new law, RA 9502:
From the moment he sells it to the stores
or to the public, then there is already a violation.
Section 74.3. All cases arising from the implementation of
They can invent but not in a commercial scale.
this provision shall be cognizable by courts with
appropriate jurisdiction provided by law.
3. Where the act consists of making or using
No court, except the Supreme Court of the
exclusively for the purpose of experiments that
Philippines, shall issue any temporary restraining order or
relate to the subject matter of the patented
preliminary injunction or such other provisional remedies
invention
that will prevent its immediate execution.
School or personal experiments are fine.
Section 74.4. The Intellectual Property Office (IPO), in
4. In the case of drugs and medicines, where the act
consultation with the appropriate government agencies,
includes testing, using, making or selling the
shall issue the appropriate implementing rules and
invention including any data related thereto,
regulations for the use or exploitation of patented
solely for purposes reasonably related to the
inventions as contemplated in this section within one
development and submission of information and
hundred twenty (120) days after the effectivity of this law.
issuance of approvals by government regulatory
agencies required under any law of the Philippines
or of another country that regulates the What is prior user? Is there a possibility in a remote place
manufacture, construction, use or sale of any that someone has already used the same invention? Of
product course yes.
This is again from Cheaper’s Medicine Act.
Diba we need approval by the BFAD, yung mga Section 73. Prior User. -‐ 73.1. Notwithstanding Section 72
ganun? Before it is approved, it has to be tested. hereof, any prior user, who, in good faith was using the
That is not a violation of the right of the patentee. invention or has undertaken serious preparations to use the
invention in his enterprise or business, before the filing date
5. Where the act consists of the preparation for or priority date of the application on which a patent is
individual cases, in a pharmacy or by a medical granted, shall have the right to continue the use thereof as
professional, of a medicine in accordance with a envisaged in such preparations within the territory where the
medical shall apply after a drug or medicine has patent produces its effect.
been introduced in the Philippines or anywhere
else in the world by the patent owner, or by any 73.2. The right of the prior user may only be transferred or
party authorized to use the invention assigned together with his enterprise or business, or with
When a doctor prescribes or mix -‐-‐-‐ to come that part of his enterprise or business in which the use or
up with a new medicine and he needs to follow a preparations for use have been made. (Sec. 40, R.A. No.
certain formula that is already patented, then that is 165a)
not a violation of the right of the patentee. This is the prior user rule. A invented something but did not
Provided, further, That the right to import the apply a patent for it. B invented something but he applied
drugs and medicines contemplated in this section for it. Should A stop manufacturing or using something
that he invented because B applied for the patent? No. A is
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given the right, as a prior user, to continue whatever it is infringing goods, materials and implements
that he is using. predominantly used in the infringement be disposed of
outside the channels of commerce or destroyed, without
What about the government? compensation.
Section 74. Use of Invention by Government. -‐ 74.1. A 76.6. Anyone who actively induces the infringement of a
Government agency or third person authorized by the patent or provides the infringer with a component of a
Government may exploit the invention even without patented product or of a product produced because of a
agreement of the patent owner where: patented process knowing it to be especially adopted for
(a) The public interest, in particular, national infringing the patented invention and not suitable for
security, nutrition, health or the development of other substantial non-‐infringing use shall be liable as a
sectors, as determined by the appropriate agency of the contributory infringer and shall be jointly and severally
government, so requires; or liable with the infringer. (Sec. 42, R.A. No. 165a)
(b) A judicial or administrative body has
determined that the manner of exploitation, by the owner Note: Not read in class. Added for review purposes.
of the patent or his licensee is anti-‐competitive.
What is infringement?
Let’s say B has a patent over this particular product that he The making, using, offering for sale, selling, or importing a
invented but he did not do anything. He doesn’t patented product or a product obtained directly or
manufacture or share to the world what he has invented. indirectly from a patented process, or the use of a patented
He has the rights but he did not use it. So an interested process without the authorization of the patentee.
person can file a petition with the court or maybe the IPO
to declare that his (B) manner of using his patent is anti-‐ Anyone who commits these acts, as long as the application
competitive. has already been published or its grant, then that is already
infringement.
Section 76. Civil Action for Infringement. -‐ 76.1. The
making, using, offering for sale, selling, or importing a Who can file an action for infringement of patent?
patented product or a product obtained directly or Only the registered holder of a patent.
indirectly from a patented process, or the use of a
patented process without the authorization of the Even if one is an inventor of a product, sells it and
patentee constitutes patent infringement. manufactures it, but he did not apply for a patent… Then
somebody has the same product who manufactures it, then
76.2. Any patentee, or anyone possessing any right, title or he cannot file an action. That is why patent is a protection
interest in and to the patented invention, whose rights for the right to file an infringement.
have been infringed, may bring a civil action before a court
of competent jurisdiction, to recover from the infringer What is the test for infringement?
such damages sustained thereby, plus attorney's fees and Substantial identity.
other expenses of litigation, and to secure an injunction
for the protection of his rights. This is enough to constitute infringement. Exact identity is
not required between two devices. Let us say this thermos
76.3. If the damages are inadequate or cannot be readily 1 is registered under the name of A and B manufactures
ascertained with reasonable certainty, the court may thermos 2, is there substantial identity? Yes, therefore,
award by way of damages a sum equivalent to reasonable there is infrigement committed by B.
royalty.
What is the test of substantial identity?
76.4. The court may, according to the circumstances of the It is the doctrine of equivalents.
case, award damages in a sum above the amount found as
actual damages sustained: Provided, That the award does How do you know that there is substantial identity
not exceed three (3) times the amount of such actual between two devices – the registered one and the one that
damages. is being copied?
According to the doctrine of equivalents, when the two
76.5. The court may, in its discretion, order that the devices perform substantially the same function, in
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substantially the same way, to obtain the same result even

Can a foreign national file an action for infringement?
if they differ in form, shape or dimension.
Section 77. Infringement Action by a Foreign National. -‐
What are the functions of these two? (Referrring to the 2
Any foreign national or juridical entity who meets the
thermos) The same diba? To make the water in it hot. How
requirements of Section 3 and not engaged in business in
do you use it? Open this and pour, so again the same way.
the Philippines, to which a patent has been granted or
Like the vacuum cleaner, they come in different sizes and
assigned under this Act, may bring an action for
style but they perform the same functions… so there is a
infringement of patent, whether or not it is licensed to do
substantial identity.
business in the Philippines under existing law. (Sec. 41-‐A,
R.A. No. 165a)
What entity has jurisdiction over infringement cases?
Regional Trial Court.
The inventor is a foreign national and his invention is being
Who may bring an action for infringement? sold in the Philippines. Later, he finds out that a Filipino
Any patentee or any person possession any title, right or copied his invention and is selling the gadget at 1/10 price in
interest in the patented inventions whose rights have been the country. Can he file an action? Yes, provided he meets
infringed. the requirements under Section 3 and he is not engaged in
business in the Philippines.
What is the prescriptive period for infringement?
Under Section 46.2, an action for infringement may not be “He is not engaged in business in the Philippines”
filed until after the grant of a patent on the published Under the Corporation Code…
application and within four years from the commission of  If you are a foreign entity doing business in the
the acts complained of. Philippines, you can sue if you are registered in the
Philippines – SEC or DTI.
What can be recovered from the infringer after court  If you are doing business in the Philippines but is
action? not registered, then you cannot sue.
 Damages sustained thereby  BUT can a foreigner not registered here sue? Yes.
 Attorney’s fees and expenses in the litigation Provided he is not doing business here in the
Philippines.
The Court may issue:
 Injunction for the protection of his rights Here, we are talking about a person who is not doing
business here in the Philippines but just invented a product
 If the damages are inadequate or cannot be readily
which is registered and suddenly he finds out that someone
ascertained with reasonable certainty, the court
is copying his invention.
may award by way of damages a sum equivalent to
reasonable royalty
Again, he can only file if:
 Order that the infringing goods, materials and
1. He meets the requirements under Section 3
implements predominantly used in the
Section 3 “any person who is a national or
infringement be disposed of outside the channels
domiciled or has a real and effective
of commerce or destroyed, without compensation
industrial in a country which is a party to a
treaty or convention to which the PH is a
Who can be jointly and severally held liable with the
signatory or a country which extends
infriger as a contributory infringer?
reciprocal rights to nationals of the PH by
 Inducer – anyone who actively induces the
law)
infringement of a patent
2. He is not doing business in the Philippines
 Provider or someone who helps the infringer –
3. He has been granted or assigned a patent under
anyone who provides the infringer with a
RA 8293 (WON licensed to do business)
component of a patented product or of a product
produced because of a patented process knowing
If you are a foreigner, you can only sue for infringement if
it to be especially adopted for infringing the
you have a patent. Your product or invention, if it is only
patented invention and not suitable for substantial
being sold in your country (let’s say Japan) and when you
non-‐infringing use
go in the Philippines, you see something na same sa iyong
invention, you cannot file a case because you did not
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register the invention here. You have to register even if you

if he only has the notice of publication but there is nothing
are not doing business in the Philippines for your
in the container that says the product is under “Philippine
protection. All you have to show is that you are the
Patent”, then there can be no presumption. Therefore, the
inventor, that the requirements are met. There’s no
patentee is not entitled to damages.
requirement of being a Filipino. The prescriptive period is
four years.
What are the defenses for infringement cases?
What do you mean by damages? If you file an action for
Section 81. Defenses in Action for Infringement. -‐ In an action
infringement, what you want the other person to do is to
for infringement, the defendant, in addition to other
stop whatever it is that he is doing. There are times when
defenses available to him, may show the invalidity of the
the court may award damages, like actual damages – what
patent, or any claim thereof, on any of the grounds on which
the patent holder lost in terms of sales or moral damages –
a petition of cancellation can be brought under Section 61
for sleepless nights or exemplary damages.
hereof. (Sec. 45, R.A. No. 165)
Are damages automatically awarded by the court?
Take note of Section 61 ha. We already discussed this.
(Example: The invention is not new or novel; the issuance
Section 80. Damages, Requirement of Notice. -‐ Damages of the patent is invalid.)
cannot be recovered for acts of infringement committed
before the infringer had known, or had reasonable Section 82. Patent Found Invalid May be Cancelled. -‐ In an
grounds to know of the patent. It is presumed that the action for infringement, if the court shall find the patent
infringer had known of the patent if on the patented or any claim to be invalid, it shall cancel the same, and the
product, or on the container or package in which the Director of Legal Affairs upon receipt of the final
article is supplied to the public, or on the advertising judgment of cancellation by the court, shall record that
material relating to the patented product or process, are fact in the register of the Office and shall publish a notice
placed the words "Philippine Patent" with the number of to that effect in the IPO Gazette. (Sec. 46, R.A. No. 165a)
the patent. (Sec. 44, R.A. No. 165a)
Infringement cases are filed by whom? By the patent
When are the damages not recoverable? holder. Where? Court.
Acts of infringement committed before the infringer had
known, or had reasonable grounds to know of the patent. Cancellation cases are filed by whom? The one who does
not have the patent or the person other than the patent
Take note that malice is not important in infrigement. As holder. Where? BLA.
long as that person makes, manufactures, sells, etc. the
patented product of another, that already constitutes Let’s say we have an infringement case filed by the patent
infrigement whether or not he knew of the patent. BUT holder A in court against B who is the alleged infringer.
damages are only awarded to the patent holder if the What if the court renders a decision in favor of B? Because
infringer knows the existence of the patent. If the only of B’s defenses, the court declared that the patent of A
notice that the infriger has was notice to the whole world was invalid. Therefore, B did not infringe. How can you
by publication but he did not have actual notice, then the infringe an invalid patent? What can the court do? The court
patentee cannot be awarded damages. shall cancel the patent.
Presumption that the infringer had known of the patent: In other words, the infringement court can cancel a patent
If on the patented product, or on the container or package even if the jurisdiction is under the Bureau of Legal Affairs.
in which the article is supplied to the public, or on the But this can be done in an infringement case where the
advertising material relating to the patented product or patent is found to be invalid.
process, are placed the words "Philippine Patent" with the
number of the patent. The Director of Legal Affairs upon receipt of the final
judgment of cancellation by the court, shall record that
Obvisouly, if something is bought from the department fact in the register of the Office and shall publish a notice
store and the box contained the words “Philippine Patent,” to that effect in the IPO Gazette.
the infringer cannot say that he does not know the
existence of the patent. There is a presumption. However,
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B, the alleged infringer, does not have to file anymore a

cancellation case with the BLA. He already presented his Section 86. Jurisdiction to Settle Disputes on Royalties. -‐
defenses there. The Director of the Documentation, Information and
Technology Transfer Bureau shall exercise quasi-‐judicial
Section 84. Criminal Action for Repetition of Infringement. jurisdiction in the settlement of disputes between parties
-‐ If infringement is repeated by the infringer or by anyone to a technology transfer arrangement arising from
in connivance with him after finality of the judgment of technology transfer payments, including the fixing of
the court against the infringer, the offenders shall, appropriate amount or rate of royalty. (n)
without prejudice to the institution of a civil action for
damages, be criminally liable therefor and, upon In TTAs, the patent holder can allow an entity to
conviction, shall suffer imprisonment for the period of not manufacture his products and they will have an agreement
less than six (6) months but not more than three (3) years where the inventor will receive royalties for every item
and/or a fine of not less than One hundred thousand pesos sold. What if there is a disagreement as to the royalties?
(P100,000) but not more than Three hundred thousand The jurisdiction below to the DDITT (Documentation,
pesos (P300,000), at the discretion of the court. The Information and Technology Transfer Bureau).
criminal action herein provided shall prescribe in three (3)
years from date of the commission of the crime. (Sec. 48, Section 89. Rights of Licensor. -‐ In the absence of any
R.A. No. 165a) provision to the contrary in the technology transfer
arrangement, the grant of a license shall not prevent the
When is an infringement a criminal act? licensor from granting further licenses to third person nor
If infringement is repeated by the infringer or by anyone in from exploiting the subject matter of the technology
connivance with him after finality of the judgment of the transfer arrangement himself. (Sec. 33-‐B, R.A. 165a)
court against the infringer.
Who is the licensor here? The patent holder. If I am a patent
The first infringement case is a civil case wherein the holder and I enter a TTA with X, can I enter a TTA with Y as
patent holder will just ask the court to stop the other well? Yes, as long as our TTA with X is not exclusive. Can I
person to stop whatever he is doing and maybe get award manufacture my own product? Yes, of course.
of damages. If the infringer does it again after the finality of
judgment, this time, the infringement case is already a What about the licensee?
criminal case. The patent holder has a choice – pwede
another civil case for damages or a criminal case with the Section 90. Rights of Licensee. -‐ The licensee shall be
civil aspect instituted so that he can ask for civil liability. entitled to exploit the subject matter of the technology
transfer arrangement during the whole term of the
What is prescriptive period for criminal action? technology transfer arrangement. (Sec. 33-‐C (1), R.A. 165a)
Three years from the commission of the crime.
For example the term of the TTA is one year, then within
What is the crime? that year, he can exlpoit the subject matter or whatever is
The repeated infringement. If it is done after the final stated in the TTA.
judgment where one is declared as an infringer.
CASES
We already looked at the definition of TTA. It is related to
voluntary licensing. What is this? MIPURI vs. CA: The Court here said that the Paris
Convention governs protection of well-‐known trademarks
Section 85. Voluntary License Contract. -‐ To encourage the and is self-‐executing. It (Article 60) does not require
transfer and dissemination of technology, prevent or legislative enactment to make it effective to signatory
control practices and conditions that may in particular countries. Anyone who complies with the requirements of
cases constitute an abuse of intellectual property rights Section 3 can invoke this convention. The Paris Convention
having an adverse effect on competition and trade, all is one of the comprehensive and multilateral agreements
technology transfer arrangements shall comply with the on intellectual property.
provisions of this Chapter. (n)
EMERALD GARMENT vs. CA: There are times when these
What body has jurisdiction to settles issues on royalties? treaties or conventions are in conflict with our municipal
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220
laws. Like in RA 166, the old IP law, prior use is required for
Intellectual Property Rights simply provides that
trademarks but it’s not required under the convention.
interlocutory orders shall not be appealable. The said Rules
That’s why under RA 8293, we already removed the
and Regulations do not prescribe a procedure within the
requirement of prior use.
administrative machinery to be followed in assailing orders
Basically, what was discussed here is what should
issued by the BLA-‐IPO pending final resolution of a case
be followed? The municipal law or the convention? This is
filed with them.
already considered moot and academic because there are
Hence, in the absence of such a remedy, the
already no conflicts.
provisions of the Rules of Court shall apply in a suppletory
manner, as provided under Section 3, Rule 1 of the same
EY INDUSTRIAL vs. SHEN DAR: Can BLA cancel the
Rules and Regulations. Hence, in the present case,
trademark of Shen Dar even if it is the one which filed the
respondents correctly resorted to the filing of a special civil
cancellation case? Yes.
action for certiorari with the CA to question the assailed
The BLA is a quasi-‐judicial body. Just because it is
Orders of the BLA-‐IPO, as they cannot appeal therefrom
Shen Dar which filed the cancellation case, it doesn’t mean
and they have no other plain, speedy and adequate remedy
that BLA can only cancel the registration of EY Industrial. If
in the ordinary course of law.
BLA finds out that it is Shen Dar’s registration that shall be
cancelled, then it can cancel. That is the power of a quasi-‐
September 29, 2014
judicial body.
PHIL PHARMAWEALTH vs. PFIZER: In interlocutory oder, Continuation of CASES

there is still something left to be done by the court. In this
case, why is it not filed with the -‐-‐-‐? Because interlocutory MANZANO vs. CA: This case was decided under RA 165 –
orders cannot be appealed. Only final orders and the Law on Patents. Is the old law more strict compared
judgments can be appealed. than RA 8293?
The motion filed by Phizer before the BLA to issue A product can be patented even though there is an
a writ of preliminary injuction to stop Phil Pharmawealth existing product as long as there are improvements. If you
was filed within the case of the cancellation. This was look at our current provisions on patent, under RA 8293,
denied by BLA and the cancellation case was still going on. which provision on patentability is new? Section 26 –
Now, that order of the BLA is an interlocutory order and did inventive step.
not dispose the case. Under the Rule, that cannot be Under the old law, the requirement was new and
appealed. useful (industrially applicable). Under RA 8293, the
What we are talking here is the flow of appeal. requisites for patentabilty are more detailed. Industrial
applicability is also a new provision. There are a lot of new
Where do you appeal? To the DG. You can only appeal final
orders or decisions of the DBP, DTM, etc. provisions under RA 8293 but of course, we still encounter
cases that have been decided under RA 165 or the old
In this case, what was brought before the CA was
an interlocutory order via petition for certiorari under Rule Patent Law and RA 166 or the Trademark Law. Those cases
were filed before RA 8293 took effect and this case of
65. The correct venue is the CA. Do not follow Section 7
because it is not applicable. Manzano was decided in 1997.
It is true that under Section 7(b) of RA 8293, GODINES vs. CA: What is a utility model? It is an invention
otherwise known as the Intellectual Property Code of the that does not quite meet the requirements of patent.
Philippines, which is the presently prevailing law, the Take note of the term “utility model.” You’ll never
Director General of the IPO exercises exclusive appellate know if you may encounter it later.
jurisdiction over all decisions rendered by the Director of From the FT of the case:
the BLA-‐IPO. However, what is being questioned before the Recognizing that the logical fallback position of
CA is not a decision, but an interlocutory order of the BLA-‐ one in the place of defendant is to aver that his product is
IPO denying respondents' motion to extend the life of the different from the patented one, courts have adopted the
preliminary injunction issued in their favor. doctrine of equivalents which recognizes that minor
RA 8293 is silent with respect to any remedy modifications in a patented invention are sufficient to put
available to litigants who intend to question an the item beyond the scope of literal infringement.
interlocutory order issued by the BLA-‐IPO. Moreover, Thus, according to this doctrine, "(a)n
Section 1(c), Rule 14 of the Rules and Regulations on infringement also occurs when a device appropriates a
Administrative Complaints for Violation of Laws Involving prior invention by incorporating its innovative concept and,
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albeit with some modification and change,

performs
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substantially the same function in substantially the same

Provided, That the importation of the patented article
way to achieve substantially the same result."
shall constitute working or using the patent. (Secs. 34, 34-‐ A,
34-‐B, R.A. No. 165a)
MAGUAN vs. CA: In this case, the SC said that the
infrigement cases and cancellation cases can proceed
93.6. Where the demand for patented drugs and medicines
together.
is not being met to an adequate extent and on reasonable
In cancellation cases, the issue is WON the patent
terms, as determined by the Secretary of the Department
that was issued to the patent holder was valid. In the
of Health.
infrigement cases, the issue is WON the other party infriges
on the patent of the patent holder.
Note: As amended by RA 9502
Can the RTC cancel the patent in an infringement
case? Remember that in cancellation cases, the BLA has
What is compulsory licensing?
jurisdiction. What if in the RTC, the defendant were able to
From the term alone, it is not voluntary. The patentee does
present defenses to prove that the patent was really
not voluntarily allow somebody else to exploit his patent. It
invalid… so was there an infringement or none? None
is a grant of license to exploit a patented invention even
because the patent was invalid, there was nothing to
without the agreement of the patent holder.
infringe. If the patent is invalid, it can be cancelled.
Can the RTC cancel the patent? Yes. There is no
If you want to apply for compulsory licensing, you go to the
need to go through another cancellation case with the BLA.
DG directly.
The RTC is given the power to cancel.
So we already looked at voluntary licensing which is a TTA Who can be granted a compulsory license?
wherein the patent holder is given the right to dispose of Any person who has shown his capability to exploit the
invention under any of the following circumstances:
one’s property or to enter into license agreements to other
entities. This is, of course, with the consent of the 1. National emergency or other circumstances of
patentee. extreme urgency
Example: China declares war on the
Let’s now go to another topic – compulsory licensing. This Philippines. Yun pala may existing patents
particular section of RA 8293 has a lot of amendments from for atomic bombs and nuclear weapons in
RA 9502 (The Cheaper Medicines Act). favor of X (a Filipino citizen). In favor we
need the invention of X, there could be a
compulsory licensing to be issued by the
Section 93. Grounds for Compulsory Licensing. -‐ The
DG.
Director of Legal Affairs may grant a license to exploit a
2. Where the public interest, in particular, national
patented invention, even without the agreement of the
security, nutrition, health or the development of
patent owner, in favor of any person who has shown his
other vital sectors of the national economy as
capability to exploit the invention, under any of the
determined by the appropriate agency of the
following circumstances:
Government, so requires
93.1. National emergency or other circumstances
So it is needed by the public
of extreme urgency;
3. Where a judicial or administrative body has
93.2. Where the public interest, in particular,
determined that the manner of exploitation by the
national security, nutrition, health or the development of
owner of the patent or his licensee is anti-‐
other vital sectors of the national economy as determined
competitive
by the appropriate agency of the Government, so requires;
4. In case of public non-‐commercial use of the patent
or
by the patentee, without satisfactory reason
93.3. Where a judicial or administrative body has
5. If the patented invention is not being worked in
determined that the manner of exploitation by the owner
the Philippines on a commercial scale, although
of the patent or his licensee is anti-‐competitive; or
capable of being worked, without satisfactory
93.4. In case of public non-‐commercial use of the
reason: Provided, That the importation of the
patent by the patentee, without satisfactory reason;
patented article shall constitute working or using
93.5. If the patented invention is not being
the patent.
worked in the Philippines on a commercial scale, although
This is different from the rest.
capable of being worked, without satisfactory reason:
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6. Where the demand for patented drugs and exportation of the products imported under this provision.
medicines is not being met to an adequate extent The grant of a special compulsory license under
and on reasonable terms, as determined by the this provision shall be an exception to Sections 100.4 and
Secretary of the Department of Health. 100.6 of Republic Act No. 8293 and shall be immediately
executory.
All these grounds under compulsory licensing… refer to the No court, except the Supreme Court of the
non-‐use or maybe the limited distribution of a patented Philippines, shall issue any temporary restraining order or
product that is necessary for public health, safety, nutrition preliminary injunction or such other provisional remedies
or whatever. that will prevent the grant of the special compulsory
license.
Section 94. Period for Filing a Petition for a Compulsory
License. -‐ 94.1. A compulsory license may not be applied 93-‐A.2. A compulsory license shall also be available for the
for on the ground stated in Subsection 93.5 before the manufacture and export of drugs and medicines to any
expiration of a period of four (4) years from the date of country having insufficient or no manufacturing capacity
filing of the application or three (3) years from the date of in the pharmaceutical sector to address public health
the patent whichever period expires last. problems: Provided, That, a compulsory license has been
granted by such country or such country has, by
94.2. A compulsory license which is applied for on any of notification or otherwise, allowed importation into its
the grounds stated in Subsections 93.2, 93.3, and 93.4 and jurisdiction of the patented drugs and medicines from the
Section 97 may be applied for at any time after the grant Philippines in compliance with the TRIPS Agreement.
of the patent. (Sec. 34(1), R.A. No. 165)
93-‐A.3. The right to grant a special compulsory license
What is the period for filing a petition? under this section shall not limit or prejudice the rights,
 That is why I said that 93.5 is different from the obligations and flexibilities provided under the TRIPS
rest because the prescriptive period is before the Agreement and under Philippine laws, particularly Section
expiration of a period of 4 years from the date of 72.1 and Section 74 of the Intellectual Property Code, as
filing of the application or 3 years from the date of amended under this Act. It is also without prejudice to the
the patent whichever period expires last. extent to which drugs and medicines produced under a
 For the other grounds, the period for filing may be compulsory license can be exported as allowed in the
applied before the grant of the patent. There is no TRIPS Agreement and applicable laws.
prescriptive period for filing a petition for
compulsory licensing.
Section 93-‐A refers to drugs and medicines. This is is not
only a compulsory license but a special compulsory license
So that is the compulsory licensing under RA 8293 but RA
under the TRIPS Agreement. Here, still, you don’t get the
9502 inserted a new provision Section 93-‐A.
consent of the patentee.
Section 93-‐A. Procedures on Issuance of a Special What is being sought here? The exploitation of a patented
Compulsory License under the TRIPS Agreement. -‐ 93-‐A.1. The product.
Director General of the Intellectual Property Office, upon the
written recommendation of the Secretary of the Department How do you apply for the special compulsory license
of Health, shall, upon filing of a petition, grant a special under the TRIPS Agreement?
compulsory license for the importation of patented drugs and The applicant files a petition for the compulsory license for
medicines. The special compulsory license for the the importation of patented drugs and medicines.
importation contemplated under this provision shall be an
additional special alternative procedure to ensure access Who will grant?
to quality affordable medicines and shall be primarily for The DG of the IPO but there must be a written
domestic consumption: Provided, That adequate recommendation from the Secretary of Health.
remuneration shall be paid to the patent owner either by the
exporting or importing country. The compulsory license The special compulsory license for the importation
shall also contain a provision directing the grantee the license contemplated under this provision shall be an additional
to exercise reasonable measures to prevent the special alternative procedure to ensure access to quality
re-‐
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affordable medicines and shall be primarily for domestic

If you are a patent holder or an applicant for a patent, it is
consumption.
already a property. Under the Civil Code, you have the right
These concern the importation of drugs for
to:
domestic use.
 Enjoy – Get all the benefits from it like the fruits;
right to use
What is the patent owner entitled to since his patent is
going to be exploited in the sense that that drugs could be  Dispose – Alienate or enter into assignments; etc.
imported?  Recover – If it is lost
That adequate remuneration shall be paid to the patent
owner either by the exporting or importing country. So this Inventions and any right, title or interest in and to patents
is a country obligation or state obligation to pay the patent and inventions covered thereby, may be assigned or
owner. The usual patent owners here are hthe big foreign transmitted by inheritance or bequest or may be the
drug companies. subject of a license contract.
Can you put it in your will, if you are an owner of the patent,
Take note that the the compulsory license shall also that you want to give the patent to your best friend? Of
contain a provision directing the grantee the license to course, yes.
exercise reasonable measures to prevent the re-‐
exportation of the products imported under this provision. Section 104. Assignment of Inventions. -‐ An assignment
This special compulsory license to import patented drug is may be of the entire right, title or interest in and to the
for domestic consumption so it must not be re-‐exported for patent and the invention covered thereby, or of an
profit. undivided share of the entire patent and invention, in
which event the parties become joint owners thereof. An
The grant of a special compulsory license shall be assignment may be limited to a specified territory. (Sec. 51,
immediately executory. Even if the patentee appeals the R.A. No. 165)
decision of the DG to the CA, it is immediately executory.
Let’s say a patent is co-‐owned by A and B… If co-‐owner A
Let’s say the patent holder wants to stop and wants to ask transfers his rights to X, what will happen? X will be a co-‐
a writ of preliminary injunction or TRO, where shall he go? owner of the patent with B.
The Supreme Court, not with the CA. This is a provisional
remedy, this is different from appeal. An assignment may be limited to a specified territory. It
depends on what the patentee will assign. It is up to him.
Just read Section 93-‐A-‐2.
Take note of Section 107. The situation here is two persons
Let’s go to Assignment and Transmission of Rights. jointly own the patent.
Section 107. Rights of Joint Owners. -‐ If two (2) or more
Section 103. Transmission of Rights. -‐ 103.1. Patents or persons jointly own a patent and the invention covered
applications for patents and invention to which they thereby, either by the issuance of the patent in their joint
relate, shall be protected in the same way as the rights of favor or by reason of the assignment of an undivided
other property under the Civil Code. share in the patent and invention or by reason of the
succession in title to such share, each of the joint owners
103.2. Inventions and any right, title or interest in and to shall be entitled to personally make, use, sell, or import
patents and inventions covered thereby, may be assigned the invention for his own profit: Provided, however, That
or transmitted by inheritance or bequest or may be the neither of the joint owners shall be entitled to grant
subject of a license contract. (Sec. 50, R.A. No. 165a) licenses or to assign his right, title or interest or part
thereof without the consent of the other owner or
How do you explain Section 103.1? If you are the patent owners, or without proportionally dividing the proceeds
owner here, what can you do? Let’s say you are an with such other owner or owners. (Sec. 54, R.A. No. 165)
applicant for a patent, what can you do? Under the Civil
Code, the owner has the right to enjoy, dispose or recover
his property. These rights are also available to the patent If two (2) or more persons jointly own a patent and the
holder or to the applicant. invention covered thereby, either by:
 The issuance of the patent in their joint favor
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The persons here are co-‐inventors, so the

patent will be under their names. They are
108.2. Where the right to a patent conflicts with the
co-‐patentees.
right to a utility model registration in the case referred to
 By reason of the assignment of an undivided
in Section 29, the said provision shall apply as if the word
share in the patent and invention
"patent" were replaced by the words "patent or utility
The one I gave you earlier, A assigned his
model registration". (Sec. 55, R.A. No. 165a)
share to X. X and B are co-‐owners of the
patent.
If you want to apply for a utility model registration for your
 By reason of the succession in title to such share,
gadget or product, you go through the entire process that
each of the joint owners shall be entitled to
a patent applicant has to go through. It’s just that you don’t
personally make, use, sell, or import the
have to prove that your product has an inventive step.
invention for his own profit
X is the owner of the patent of a particular
Section 109. Special Provisions Relating to Utility Models. -‐
product. He dies intestate and he has five children.
109.1.
After his death, the children become the co-‐
(a) An invention qualifies for registration as a
owners of the patent. And each of them has the
utility model if it is new and industrially applicable.
right to make, use, sell or import the invention for
(b) Section 21, "Patentable Inventions", shall apply
his own profit so kanya-‐kanya sila. One does not
except the reference to inventive step as a condition of
have to share the profit, he can use it for his own
protection.
benefit because he is a co-‐owner.
109.2. Sections 43 to 49 shall not apply in the case of
BUT neither of the joint owners shall be entitled to grant applications for registration of a utility model.
licenses or to assign his right, title or interest or part
thereof without the consent of the other owner or 109.3. A utility model registration shall expire, without any
owners, or without proportionally dividing the proceeds possibility of renewal, at the end of the seventh year after
with such other owner or owners the date of the filing of the application.
The right to enjoy is absolute in the sense that each of the
co-‐owner can fully use or exploit the product. As to 109.4. In proceedings under Sections 61 to 64, the utility
transferring or disposing of one’s right (like granting model registration shall be canceled on the following
licenses), there must be a unanimous consent. This is an act grounds:
of alteration. Therefore, all of the co-‐owners must consent. (a) That the claimed invention does not qualify for
There is a proportional sharing of the patent. Like if they registration as a utility model and does not meet the
receive royalties by virtue of the licensing contract, then requirements of registrability, in particular having regard
the co-‐owners will share. All of them are entitled to the to Subsection 109.1 and Sections 22, 23, 24 and 27;
proceeds. (b) That the description and the claims do not
comply with the prescribed requirements;
Let’s now go to utility models. (c) That any drawing which is necessary for the
understanding of the invention has not been furnished;
A utility model is also something that has the right of the (d) That the owner of the utility model
patents – it can be registered. Instead of three requisites, it registration is not the inventor or his successor in title.
has only two: (Secs. 55, 56, and 57, R.A. No. 165a)
1. New or novel
2. Industrially applicable
What is the term of registration of utility models?
7 years from the date of filing of application. No renewal
But take note, under Section 21, patentable inventions shall
available. (Note: For patents, 20 years from the filing date.
apply except the reference to inventive step as a condition
The provisions do not provide for a renewal.)
of protection. (?)
Can somebody oppose or file an action for the cancellation

Section 108. Applicability of Provisions Relating to Patents.
of the utility model registration? Yes, under Section 109.4.
-‐ 108.1. Subject to Section 109, the provisions governing
Basically, the same grounds for the cancellation of a patent.
patents shall apply, mutatis mutandis, to the registration
of utility models.
Who can apply for the registration of the utility model?
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Obviously, the inventor.

SECTIONS OF REPUBLIC ACT NO. 8293, OTHERWISE
KNOWN AS THE INTELLECTUAL PROPERTY CODE OF THE
Section 110. Conversion of Patent Applications or
PHILIPPINES AND FOR OTHER PURPOSES).
Applications for Utility Model Registration. -‐ 110.1. At any time
before the grant or refusal of a patent, an applicant for a
Why is it important to register if you want to have a
patent may, upon payment of the prescribed fee, convert his
business? Or if you have a certain brand? Let me give you
application into an application for registration of a utility
examples here:
model, which shall be accorded the filing date of the initial
 News article from Philippine Daily Inquirer (2008)
application. An application may be converted only once.
Have you heard of a designer named Cesar
Gaoco (a Filipino)? Before he became
110.2. At any time before the grant or refusal of a utility
popular in the PH, he was based in Hong
model registration, an applicant for a utility model
Kong. He was the Chief Designer in
registration may, upon payment of the prescribed fee,
Shanghai -‐-‐-‐ (a boutique where all the -‐-‐-‐ go
convert his application into a patent application, which
to). Because he became very popular in
shall be accorded the filing date of the initial application.
HK, he decided to return to the PH. He
(Sec. 58, R.A. No. 165a)
wanted to put up his own store in the PH
and establish his brand. He went to the
IPO to register his name.
Can you convert your application for a utility model to a
When he went there, he was in
patent and vice versa? Yes, you can do so at any time
for a surprise. Somebody has already beat
before the grant or refusal of a patent registration.
him to it. Since then, he has been in a
battle to recover his name. In December,
If you apply a patent and you feel na hindi yun ma-‐approve
he filed 4 separate applcations to the IPO
because your invention does not have an inventive step,
to register his name and variants of the
then you can convert it to a utility model.
mark. He had to go through securing
affidavits from individuals, clients and
How many times can you convert your application?
journalists validating in fact that he is
Only once.
Cesar Gaoco. A check with the IPO
website revealed 5 separate applications
What is the filing date?
for the registration of Gaoco and its
The date of his initial application.
variants including a man who has almost
the same line of business of that of the
Section 111. Prohibition against Filing of Parallel
designer’s. A further research on the
Applications. -‐ An applicant may not file two (2)
website reveals that the same man has 27
applications for the same subject, one for utility model
other intellectual property applications.
registration and the other for the grant of a patent
The status of the applications is “deemed
whether simultaneously or consecutively. (Sec. 59, R.A.
registered pending application for
No. 165a)
updating, etc.”
In other words, if you do not
Can you file two applications? One for patent and the
apply for the registration of your brand,
other for utility model application for the same invention?
then somebody might beat you to it just
No, whether simultaneously or consecutively. You have to
like what happened to Cesar Gaoco. He
choose one.
couldn’t even register his own name.
There is this chapter after utility models which is not  April 27, 2008 news
included in the coverage. But there’s no harm in reading. I Do you know the brand G2000?
just want to warn you that this entire chapter of industrial Apparently, when I was in Hong Kong…
design was amended by RA 9150. This will not be included Together with Giordano, G2000 is a masa
in the exam but I suggest, for your information, read RA brand. Apparently, merong G2000 in the
9150 (AN ACT PROVIDING FOR THE PROTECTlON OF Philippines that had nothing to do with
LAYOUT-‐DESIGNS (TOPOGRAPHIES) OF INTEGRATED the G2000 in HK.
CIRCUITS, AMENDING FOR THE PURPOSE CERTAIN The holder of the trademark
G2000 is Romeo Chiong who is not an
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official distributor of G2000. He is a holder 121.1. "Mark" means any visible sign capable of
of a trademark of a Hong Kong based distinguishing the goods (trademark) or services (service
brand. He used exactly the same logo. mark) of an enterprise and shall include a stamped or
Everyone who buys G2000 from HK thinks marked container of goods; (Sec. 38, R.A. No. 166a)
that the G2000 in the Philippines is the
same with that in HK when in truth and in 121.2. "Collective mark" means any visible sign designated
fact, it is not. as such in the application for registration and capable of
In addition to G2000, Romeo distinguishing the origin or any other common
Chiong was also able to locally register a characteristic, including the quality of goods or services of
US popular clothing line Forever 21. The different enterprises which use the sign under the control
Hong Kong G2000 and its local of the registered owner of the collective mark; (Sec. 40,
distributors, Cinderella, rebranded G2000 R.A. No. 166a)
as GII specifically for the PH market. So
they could not market their products as 121.3. "Trade name" means the name or designation
G2000. identifying or distinguishing an enterprise; (Sec. 38, R.A.
No. 166a)
September 30, 2014
121.4. "Bureau" means the Bureau of Trademarks;
TRADEMARK
121.5. "Director" means the Director of Trademarks;
Of course, we have our RA 8293 which requires registration
of trademarks and service marks for protection. Other 121.6. "Regulations" means the Rules of Practice in
countries have other laws but they are similar with our Trademarks and Service Marks formulated by the Director
laws. We have the Paris Convention and other conventions of Trademarks and approved by the Director General; and
which also give a protection to Intellectual Property.
121.7. "Examiner" means the trademark examiner. (Sec. 38,
I have this friend who went to the US who used the R.A. No. 166a)
trademark “Magnolia” in distributing items there. Her
family was able to secure a trademark for it. The Filipinos in
What is a trademark?
the US taught that the “Magnolia ice cream” found in the
Any visible sign capable of distinguishing the goods of an
San Francisco stores was the Magnolia ice cream from the
enterprise.
Philippines when in fact it was not. When Magnolia decided
Examples: “M” of McDonalds; Alligator in Lacoste; Logo of
to go to the States, they found out that there was already
PAL
somebody who beat them to the trademark registration.
They tried to register claiming that they are the true owner
What is “Philippine Airlines”? Tradename. What is “Mattel,
of the mark but they failed. So if, up to now, the Magnolia
Inc.”? Tradename. Mattel is engaged in the manufacture of
ice cream is still popular in the States, it’s the fake one and
dolls so “Barbie” is the trademark of Mattel. A trademark
not the real one.
could be a sign or a name that is written in a certain way
(certain font). “Colgate” is a trademark. “Palmolive” is a
Why is Magnolia’s application denied? Maybe the US has
trademark. “Procter and Gamble” is a tradename. You have
the same similar trademark law with ours. Magnolia is not
to be able to distinguish between a trademark and a
internationally well-‐known. So that is what happens,
tradename.
paunahan na ng registration. Take note that it’s one thing
to be registered in the Philippines, it is also one thing to be
What is a tradename?
registered in other countries. Just like what I read to you
The name or designation identifying or distinguishing an
yesterday, the real G2000 of Hong Kong was not able to
enterprise.
register G2000 in the Philippines so they have to sell their
Examples: San Miguel Corporation; Asia Brewery, Inc.
apparel here using the mark GII.
Note: Beer na Beer is a trademark
Section 121. Definitions. -‐ As used in Part III, the following
What is a service mark?
terms have the following meanings:
Any visible sign capable of distinguishing services of an
enterprise.
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228
Example: If you have a company that offer security services,

cannot register. You cannot also register the Nazi flag. You
like Dasia, “Dasia” is the service mark.
have to distinguish between using and registering.
(c) Consists of a name, portrait or signature identifying a

Section 122. How Marks are Acquired. -‐ particular living individual except by his written consent,
The rights in a mark or the name, signature, or portrait of a deceased President
shall be acquired through registration made validly in of the Philippines, during the life of his widow, if any,
accordance with the provisions of this law. (Sec. 2-‐A, R A. except by written consent of the widow;
How can the mark be acquired?
For one to acquire the rights to a mark, one must register If you want to open a sports shop, can you use my face as a
the trademark. It must be made in accordance to the trademark? Yes, if with my consent. If no consent, then no.
Intellectual Property Code. Can you use your own face as a trademark? Of course. You
can use your own name or signature but not of another
What is the reason why trademarks are protected? without that person’s consent.
To give to their registered owners the full benefit accruing
to them from the goodwill earned by them from the use of You can also use the name, signature or portrait of a
said registered trademark. A trademark is an incorporeal deceased President of the country as your trademark. Can
property right which is entitled to be protected from any you use the signature of Ferdinand Marcos? Only with the
illegal use by any person without the authority of its owner. consent of Imelda. Can you use the signature of Manuel
Quezon? Yes, pwede siguro because there is no more
Can you imagine if we didn’t have trademark laws? Then widow na.
everybody will be using the apple logo of Apple, Inc., the
bee of Jollibee or the check in Nike. These are all popular Now, section 123 paragraphs d, e and f are inter-‐related.
trademarks. These three are the most important questions in
trademark. These are the sources of bar exam questions.
Can you register anything and everything under the sun as You have to understand them.
your trademark? No, there are things that cannot be
registered. Section 123 enumerates what cannot be (d) Is identical with a registered mark belonging to a
registered. different proprietor or a mark with an earlier filing or
priority date, in respect of:
Section 123. Registrability. -‐ 123.1. A mark cannot be (i) The same goods or services, or
registered if it: (ii) Closely related goods or services, or
(iii) If it nearly resembles such a mark as to be
(a) Consists of immoral, deceptive or scandalous matter, likely to deceive or cause confusion;
or matter which may disparage or falsely suggest a
connection with persons, living or dead, institutions, We have what we call the Nice Classification. There was a
beliefs, or national symbols, or bring them into contempt convention there where they came up for an official
or disrepute; classification of goods. It says:
a. The same goods or services, or
For example, you want to open a boutique and you want b. Closely related goods or services, or
the name to be “Shit Boutique”, you cannot register it. It’s c. If it nearly resembles such a mark as to be likely to
a bad word, diba? You can use that word or spell it deceive or cause confusion.
differently but you cannot register.
*Draws something on the board*
(b) Consists of the flag or coat of arms or other insignia of Let’s say that this is a registered trademark (A) in the
the RP or any of its political subdivisions, or of any foreign Philippines and this is the trademark (B) sought to be
nation, or any simulation thereof; registered. Does it merely resemble the other that perhaps
there would be confusion? Let’s say trademark A by
Any flag cannot be registered as a trademark of somebody. Starlights Paints is registered for paints. Company Circle
Even if it’s just a red dot and a white background, you Star wants to register trademark 2 for underwear. Let’s say
cannot register. You can use it if you really want but you that it already given that the second trademark B is one
which nearly resembles such a mark as to be likely to
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229
deceive or cause confusion. Can Circle Star register the

mark in relation to those goods or services would indicate
trademark?
a connection between those goods or services, and the
Yes. Even though the trademarks are confusingly
owner of the registered mark: Provided further, That the
similar as to cause confusion, they are for different goods.
interests of the owner of the registered mark are likely to
Underwear is not even closely related to paints.
be damaged by such use;
For example, Starlight is registered not only for
paints but also for socks or t-‐shirts. Pwede naman na you
If the mark is identical with, or confusingly similar to, or
can apply for trademark for different lines of goods. Medyo
constitutes a translation of a mark considered well-‐known
similar ba siya sa products ng Circle Star? This time, Circle
in accordance with the preceding paragraph, which is
Star cannot register trademark B because socks or t-‐shirts
registered in the Philippines with respect to goods or
are closely related with underwears.
services which are not similar to those with respect to
which registration is applied for, provided that:
(e) Is identical with, or confusingly similar to, or
a. The use of the mark in relation to those goods or
constitutes a translation of a mark which is considered by
services would indicate a connection between
the competent authority of the Philippines to be well-‐
those goods or services, and the owner of the
known internationally and in the Philippines, whether or
registered mark
not it is registered here, as being already the mark of a
b. The interests of the owner of the registered mark
person other than the applicant for registration, and used
are likely to be damaged by such use
for identical or similar goods or services: Provided, That in
determining whether a mark is well-‐known, account shall
Going back to our example under paragraph e. So Nike is
be taken of the knowledge of the relevant sector of the
definitely registered in the Philippines, diba? Can Circle Star
public, rather than of the public at large, including
use trademark B for bibingka?
knowledge in the Philippines which has been obtained as a
No. Any internationally well-‐known brand that is
result of the promotion of the mark;
registered here in the Philippines cannot be used for
anything provided that all the conditions are met.
If the mark is identical with, or confusingly similar to, or
constitutes a translation of a mark which is considered by
Summary:
the competent authority of the Philippines to be well-‐
known internationally and in the Philippines:
What cannot be registered under Sections 123 (d, e, f)
a. Whether or not it is registered here, as being
D E F
already the mark of a person other than the
A registered mark An internationally An internationally
applicant for registration, and
in the Philippines well-‐known brand well-‐known brand
b. Used for identical or similar goods or services.
(WON it is registered in the
registered in the Philippines
An example of an internationally well-‐known mark is the
Philippines)
check of Nike. Let’s say that particular trademark (A) of
For identical or For identical or For goods or
Nike is not registered in the Philippines. We have this
similar goods or similar goods or services not
trademark B which is identical with or confusingly similar or
services services necessarily
constitutes a translation of trademark B by Circle Star.
identical or similar
Circle Star wants to register trademark B for their bibingka.
Can Circle Star register the trademark?
October 1, 2014
Yes. For an internationally well-‐known mark not to
be registered in the Philippines, the mark must be used for
So we have these under Section 123. If you look at these
identical or similar goods. There is no relation between the
provisions, they are similar with one another.
bibingka of Circle Star and the sporting apparel of Nike.
(g) Is likely to mislead the public, particularly as to the
(f) Is identical with, or confusingly similar to, or nature, quality, characteristics or geographical origin of
constitutes a translation of a mark considered well-‐known the goods or services;
in accordance with the preceding paragraph, which is
registered in the Philippines with respect to goods or In the case of Heng and Dee vs. Wellington Department
services which are not similar to those with respect to Store, the Supreme Court said that the name “Wellington”
which registration is applied for: Provided, That use of the being either a geographic or a surname cannot be
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registered and hence, one cannot prevent the other from

using the name.
In relation to paragraphs j, k and l, we have the Doctrine of
Secondary Meaning under Section 123.2.
(h) Consists exclusively of signs that are generic for the
goods or services that they seek to identify; Section 123.2. As regards signs or devices mentioned in
paragraphs (j), (k), and (l), nothing shall prevent the
In the case of East Pacific Merchandising vs. Director of registration of any such sign or device which has become
Patents, the term “Verbena” being descriptive of a whole distinctive in relation to the goods for which registration is
genus of plants and flowers, the use of the term cannot be requested as a result of the use that have been made of it
denied to others using Verbena extract or oils for their in commerce in the Philippines. The Office may accept as
products. So Verbena is a generic name for a certain genus prima facie evidence that the mark has become distinctive,
of flowers. as used in connection with the applicant's goods or
services in commerce, proof of substantially exclusive and
However, Apple is allowed to use the mark “Apple” even if continuous use thereof by the applicant in commerce in
it is a generic term because it is not generic for the goods or the Philippines for five (5) years before the date on which
services that it seeks to identify. Apple identifies computers the claim of distinctiveness is made.
or gadgets, so not related.
Doctrine of Secondary Meaning or Doctrine of
(i) Consists exclusively of signs or of indications that have
Distinctiveness of Trademark -‐ A doctrine wherein a word
become customary or usual to designate the goods or
or phrase: originally incapable of exclusive appropriation
services in everyday language or in bona fide and
with reference to an article in the market, because
established trade practice;
geographical or otherwise descriptive, might nevertheless
have been used for so long and so exclusively by one
Example: For fried chicken, you cannot register “crispy”
producer with reference to this article that, in that trade
because it indicates the quality of chicken. It is normally
and to that group of the purchasing public, the word or
used to describe chicken. For cakes, you cannot register
phrase has come to mean that the article was his product.
“sweet”.
(j) Consists exclusively of signs or of indications that may CASE

serve in trade to designate the kind, quality, quantity,
intended purpose, value, geographical origin, time or ANA ANG vs. TEODORO: Ang wanted to use “Ang Tibay” as
production of the goods or rendering of the services, or trademark. Can it be registered? Is the word “Ang Tibay”
other characteristics of the goods or services; registrable? No. However, the long use of such to the
exclusion of other makes it registrable.
So repititive lang siya. “Exclusively” – For many years or decades,
Teodoro was the only one who used the mark “Ang Tibay”
(k) Consists of shapes that may be necessitated by for his products. So the mark has already been associated
technical factors or by the nature of the goods themselves with him. Even if the word “Ang Tibay” cannot be
or factors that affect their intrinsic value; registered under the trademark law, it can be registered
under the doctrine of secondary meaning.
(l) Consists of color alone, unless defined by a given form; Can Ang be prevented from using the term?
or From the FT of the case:
In view of the conclusion we have reached upon
So you cannot register the color “blue” alone. Now, you the first assignment of error, it is unnecessary to apply here
ask, may blue taxi man. Bakit registered ba siya? Baka the doctrine of "secondary meaning" in trade-‐mark
naman “Blue Taxi” ang registered and not “Blue”. Well, we parlance. This doctrine is to the effect that a word or
don’t know if it’s registered. Just like “Red Mobile”, is it phrase originally incapable of exclusive appropriation with
registered? It’s not just “Red” diba but “Red Mobile.” reference to an article of the market, because
geographically or otherwise descriptive, might nevertheless
(m) Is contrary to public order or morality. have been used so long and so exclusively by one producer
with reference to his article that, in that trade and to that
This is the most popular prohibition. branch of the purchasing public, the word or phrase has
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come to mean that the article was his product. (G. & C.
You don’t have to separate the goods and services, pwede
Merriam Co. vs. Salfield, 198 F., 369, 373.)
dalawa.
We have said that the phrase "Ang Tibay," being
neither geographic nor descriptive, was originally capable Section 127. Filing Date. -‐ 127.1. Requirements. -‐ The filing date
of exclusive appropriation as a trade-‐mark. But were it not of an application shall be the date on which the Office
so, the application of the doctrine of secondary meaning received the following indications and elements in English
made by the Court of Appeals could nevertheless be fully or Filipino:
sustained because, in any event, by respondent's long and (a) An express or implicit indication that the
exclusive use of said phrase with reference to his products registration of a mark is sought;
and his business, it has acquired a proprietary connotation. (b) The identity of the applicant;
(c) Indications sufficient to contact the applicant
Don’t forget the Doctrine of Secondary Meaning in or his representative, if any;
trademarks and the Doctrine of Equivalents in patents. (d) A reproduction of the mark whose registration
is sought; and
We already looked at what cannot be registered. Now, let’s (e) The list of the goods or services for which the
go to Section 124 which requires the registrant to file a registration is sought.
declaration of actual use of the mark within three years
from the filing date of the application. 127.2. No filing date shall be accorded until the required
fee is paid. (n)
Section 124.2. The applicant or the registrant shall file a
declaration of actual use of the mark with evidence to that You already know what a filing date is. In trademark, the
effect, as prescribed by the Regulations within three (3) filing date of an application is one on which the office
years from the filing date of the application. Otherwise, received the indications enumerated under Section 127. In
the application shall be refused or the mark shall be patent, you have to name the inventor but in trademark,
removed from the Register by the Director. you just need to name the applicant. Remember our
illustration yesterday, a mark can be certain for a certain
What if it takes a long time to register the mark? Can the classifcation and not the other. So the registration could be
applicant use the trademark already for his goods or service severed in the sense that some are approved and some are
mark for his services? Yes, he can use already unless he is not. That’s why you have to list all the goods or services
using the trademark or service mark of another. That is that you want to include in the application. Of course, you
infringement. Within three years, he must file a declaration have to pay the filing fee. If you will not pay, then there is
of actual use of the mark with proof (i.e. pictures) that he is no filing date.
really using the mark. If he fails to do such, the application
will be refused. It will not be granted. What if the mark has Section 131. Priority Right. -‐ 131.1. An application for
already been registered on the third year? Then, it will be registration of a mark filed in the Philippines by a person
removed and considered as not registered anymore. referred to in Section 3, and who previously duly filed an
application for registration of the same mark in one of
Section 124.3. One (1) application may relate to several those countries, shall be considered as filed as of the day
goods and/or services, whether they belong to one (1) the application was first filed in the foreign country.
class or to several classes of the Nice Classification.
131.2. No registration of a mark in the Philippines by a
We already have an illustration of this yesterday. If you person described in this section shall be granted until such
have time, you can look at the Nice Classification with the mark has been registered in the country of origin of the
list of different goods and the classification given to them. applicant.
So you have slippers, electric fan, underwear, etc., you can
place all of them in one application and all of them will have 131.3. Nothing in this section shall entitle the owner of a
the same trademark if you manufacture all of them. registration granted under this section to sue for acts
committed prior to the date on which his mark was
This is different from patent wherein there can only be one registered in this country: Provided, That, notwithstanding
application for each invention. You cannot have a the foregoing, the owner of a well-‐known mark as defined
duplicitous application for patent. Unlike in trademark, you in Section 123.1(e) of this Act, that is not registered in the
can apply for one trademark for various goods or services. Philippines, may, against an identical or confusingly similar
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mark, oppose its registration, or petition the cancellation of its registration or sue for unfair competition, without
of its registration or sue for unfair competition, without prejudice to availing himself of other remedies provided
prejudice to availing himself of other remedies provided for under the law.
for under the law.
Let’s say we have a well-‐known international mark that is
131.4. In like manner and subject to the same conditions not registered here. There’s a case. Suppose it’s the X
and requirements, the right provided in this section may brand. Even though not registered here, can he sue for
be based upon a subsequent regularly filed application in infringement? The answer is registration is required for
the same foreign country: Provided, That any foreign infringement so no but he can oppose the registration,
application filed prior to such subsequent application has cancel the registration or sue for unfair competition
been withdrawn, abandoned, or otherwise disposed of, provided that his mark is declared as internationally well-‐
without having been laid open to public inspection and known by a proper competent authority in the Philippines.
without leaving any rights outstanding, and has not
served, nor thereafter shall serve, as a basis for claiming a Section 134. Opposition. -‐ Any person who believes that he
right of priority. (Sec. 37, R.A. No. 166a) would be damaged by the registration of a mark may,
upon payment of the required fee and within thirty (30)
You already know the “earliest priority date” right? We days after the publication referred to in Subsection 133.2,
don’t have to discuss the priority date here. The only thing file with the Office an opposition to the application. Such
you have to remember here (Section 131.1): No registration opposition shall be in writing and verified by the oppositor
of a mark in the Philippines by a person (one who has an or by any person on his behalf who knows the facts, and
application abroad) described in this section shall be shall specify the grounds on which it is based and include a
granted until such mark has been registered in the country statement of the facts relied upon. Copies of certificates of
of origin of the applicant. registration of marks registered in other countries or
other supporting documents mentioned in the opposition
What will the person who has a foreign application get? His shall be filed therewith, together with the translation in
benefit? He has the early priority date but he will not be English, if not in the English language. For good cause
granted a trademark here in the Philippines unless he is shown and upon payment of the required surcharge, the
granted a trademark where he applied first. So he will be time for filing an opposition may be extended by the
prioritized because he has the earliest priority date but if he Director of Legal Affairs, who shall notify the applicant of
will not get his registration abroad, then the application will such extension. The Regulations shall fix the maximum
not be approved here. period of time within which to file the opposition. (Sec. 8,
R.A. No. 165a)
How do you distinguish this from patents?
Remember, for patents, if the application for patent
Where to file the opposition? Bureau of Legal Affairs.
registration has already been published, any person who
Opposition is filed if the registration is still pending.
commits an act that is exclusive to the would-‐be patentee
can already be made liable but the filing of the case can
Who may file for an opposition?
only be made upon the issuance of the patent.
Any person who believes that he would be damaged by the
registration of a mark.
If you look at Section 131.3, said registrant (the one who
filed abroad) cannot sue for acts committed prior to the
For example, you are applying for my face as your
date on which his mark was registered in the Philippines.
trademark, then I can oppose the application. Perhaps I
For trademarks, you have to have your registration first
could be damaged. How dare you use my face as a
before you can sue. Any acts committed before the grant of
trademark? Okay?
the trademark, the applicant does not have any cause of
action. Unlike in patents, any acts committed before the
When to file an opposition for registration?
issuance of the patent can be subject to a case.
Within 30 days after the publication of the application so
there is a time limit.
However, the owner of a well-‐known mark as defined in
Section 123.1(e) of this Act, that is not registered in the
Section 136. Issuance and Publication of Certificate. -‐ When
Philippines, may, against an identical or confusingly similar
the period for filing the opposition has expired, or when
mark, oppose its registration, or petition the cancellation
the Director of Legal Affairs shall have denied the
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opposition, the Office upon payment of the required fee, How long does a trademark registration last? According to
shall issue the certificate of registration. Upon issuance of Section 145, 10 years. It doesn’t say here “from when” so
a certificate of registration, notice thereof making we will assume that 10 years from the issuance of the
reference to the publication of the application shall be certificate.
published in the IPO Gazette. (Sec. 10, R.A. No. 165)
What are the requirements?
Let’s say there is no opposition. There is no mark that is  File a declaration of actual use and evidence to
confusingly similar nor an internationally well-‐known brand that effect OR
that is confusingly similar to the mark subject for the  Show valid reasons based on the existence of
application, Section 136 says that the Bureau of obstacles to such use
Trademarks shall issue and publish the certifcate of Within one year from the fifth anniversary of the date of
registration. the registration of the mark.
When shall it be issued? Section 146. Renewal. -‐ 146.1. A certificate of registration may
 When the period for filing the opposition has be renewed for periods of ten (10) years at its expiration
expired (after 30 days from publication). upon payment of the prescribed fee and upon filing of a
For trademarks, it’s not so tedious request. The request shall contain the following indications:
because you don’t have to check the inventive (a) An indication that renewal is sought;
step or search if it’s new. For trademarks, after 30 (b) The name and address of the registrant or his
days from publication, registered na. Presumably, successor-‐in-‐interest, hereafter referred to as the "right
there is nothing that is similar to it. holder";
 When the Director of BLA denied the application (c) The registration number of the registration
concerned;
So the required fee shall be paid. After which, the (d) The filing date of the application which
certificate will be issued. It shall be published in the IPO resulted in the registration concerned to be renewed;
Gazette. (e) Where the right holder has a representative,
the name and address of that representative;
Section 138. Certificates of Registration. -‐ A certificate of (f) The names of the recorded goods or services
registration of a mark shall be prima facie evidence of the for which the renewal is requested or the names of the
validity of the registration, the registrant's ownership of recorded goods or services for which the renewal is not
the mark, and of the registrant's exclusive right to use the requested, grouped according to the classes of the Nice
same in connection with the goods or services and those Classification to which that group of goods or services
that are related thereto specified in the certificate. (Sec. belongs and presented in the order of the classes of the
20, R.A. No. 165) said Classification; and
(g) A signature by the right holder or his
The certificate of registration of a mark is a prima facie representative.
evidence, meaning it is rebuttable. If you are the holder of a
certificate of registration, you are presumed to be the 146.2. Such request shall be in Filipino or English and may
owner of the trademark. The certificate of registration will be made at any time within six (6) months before the
enumerate the goods and services that are to be identified expiration of the period for which the registration was
with that particular trademark. issued or renewed, or it may be made within six (6)
months after such expiration on payment of the additional
Section 145. Duration. -‐ A certificate of registration shall fee herein prescribed.
remain in force for ten (10) years: Provided, That the
registrant shall file a declaration of actual use and 146.3. If the Office refuses to renew the registration, it
evidence to that effect, or shall show valid reasons based shall notify the registrant of his refusal and the reasons
on the existence of obstacles to such use, as prescribed by therefor.
the Regulations, within one (1) year from the fifth
anniversary of the date of the registration of the mark. 146.4. An applicant for renewal not domiciled in the
Otherwise, the mark shall be removed from the Register Philippines shall be subject to and comply with the
by the Office. (Sec. 12, R.A. No. 166a) requirements of this Act. (Sec. 15, R.A. No. 166a)
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registered in the Philippines, shall extend to goods and

Note: Not read in class. Added for review purposes. services which are not similar to those in respect of which
the mark is registered: Provided, That use of that mark in
Can you renew? relation to those goods or services would indicate a
Yes, every 10 years. Just pay the renewal fee. A certificate connection between those goods or services and the
of registration may be renewed for periods of ten (10) years owner of the registered mark: Provided further, That the
at its expiration upon payment of the prescribed fee and interests of the owner of the registered mark are likely to
upon filing of a request. be damaged by such use. (n)
What are the rights of the registered owner of the

The exclusive right of the owner of a well-‐known mark
trademark?
shall extend to goods and services which are not similar to
those in respect of which the mark is registered. So this is
Section 147. Rights Conferred. -‐ 147.1. The owner of a related to Section 123 (f).
registered mark shall have the exclusive right to prevent
all third parties not having the owner's consent from using Section 148. Use of Indications by Third Parties for
in the course of trade identical or similar signs or Purposes Other than those for which the Mark is Used. -‐
containers for goods or services which are identical or Registration of the mark shall not confer on the registered
similar to those in respect of which the trademark is owner the right to preclude third parties from using bona
registered where such use would result in a likelihood of fide their names, addresses, pseudonyms, a geographical
confusion. In case of the use of an identical sign for name, or exact indications concerning the kind, quality,
identical goods or services, a likelihood of confusion shall quantity, destination, value, place of origin, or time of
be presumed. production or of supply, of their goods or services:
Provided, That such use is confined to the purposes of
He has the right to Prevent all third parties not having his mere identification or information and cannot mislead the
consent from using in the course or trade identical or public as to the source of the goods or services. (n)
similar signs or containers for goods or services which are
identical or similar to those in respect of which the If the owner of a register mark has rights, then there are
trademark is registered where such use would result in a also certain limitations for the rights. Section 148 says that
likelihood of confusion registration of the mark shall not confer on the registered
owner the right to preclude third parties from using bona
Even if you register a certain trademark and you have a fide
container, that is also included in the protection. The point  Their names
is you don’t have to include the box, the containers, etc.  Addresses
They are included in the protection as long as you have a  Pseudonyms
registered trademark. Nobody can imitate your container.  A geographical name
 Exact indications concerning the kind, quality,
Take note: In case of the use of an identical sign for quantity, destination, value, place of origin, or time
identical goods or services, a likelihood of confusion shall of production or of supply of their goods or
be presumed. services.
Example: You have the Nike shoes for sporting goods and In other words, other parties can use but they cannot
we have Pinoy Nike shoes which are also selling sporting register because it’s already similar to a registered mark.
goods, then there is already a presumption that there’s a They will not be held liable for infringement provided that
likelihood of confusion. such use is confined to the purposes of mere identification
or information and cannot mislead the public as to the
What about the well-‐known mark? Earlier, we talked about source of the goods or services.
a well-‐known mark that is not registered. Now, we are
talking about a well-‐known mark that is registered. What Section 149. Assignment and Transfer of Application and
rights are available to the registrant? Registration. -‐ 149.1. An application for registration of a
mark, or its registration, may be assigned or transferred
Section 147.2. The exclusive right of the owner of a well-‐
with or without the transfer of the business using the
known mark defined in Subsection 123.1(e) which is
mark. (n)
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 Signed by the contracting parties

149.2. Such assignment or transfer shall, however, be null  Recorded in the IPO
and void if it is liable to mislead the public, particularly as
regards the nature, source, manufacturing process, October 2, 2014
characteristics, or suitability for their purpose, of the
goods or services to which the mark is applied. We looked at the rights of the registered trademark owner
under Section 147. We also checked the limitations under
149.3. The assignment of the application for registration of Section 148. In 149, we discussed assignment and transfer.
a mark, or of its registration, shall be in writing and Let’s go to Section 151.
require the signatures of the contracting parties. Transfers
by mergers or other forms of succession may be made by Section 151. Cancellation. -‐ 151.1. A petition to cancel a
any document supporting such transfer. registration of a mark under this Act may be filed with the
Bureau of Legal Affairs by any person who believes that he
149.4. Assignments and transfers of registrations of marks is or will be damaged by the registration of a mark under
shall be recorded at the Office on payment of the this Act as follows:
prescribed fee; assignment and transfers of applications (a) Within five (5) years from the date of the
for registration shall, on payment of the same fee, be registration of the mark under this Act.
provisionally recorded, and the mark, when registered, (b) At any time, if the registered mark becomes
shall be in the name of the assignee or transferee. the generic name for the goods or services, or a portion
thereof, for which it is registered, or has been abandoned,
149.5. Assignments and transfers shall have no effect or its registration was obtained fraudulently or contrary to
against third parties until they are recorded at the Office. the provisions of this Act, or if the registered mark is being
(Sec. 31, R.A. No. 166a) used by, or with the permission of, the registrant so as to
misrepresent the source of the goods or services on or in
Note: Not read in class. Added for review purposes. connection with which the mark is used. If the registered
mark becomes the generic name for less than all of the
Can a trademark registrant assign or transfer his goods or services for which it is registered, a petition to
trademark? cancel the registration for only those goods or services
Yes. may be filed. A registered mark shall not be deemed to be
the generic name of goods or services solely because such
For example, we have this popular chicken restaurant mark is also used as a name of or to identify a unique
Penong’s which registered its trademark. Let’s say product or service. The primary significance of the
Penong’s decide to sell its trademark and someone decides registered mark to the relevant public rather than
to buy it for P1B, can it sell? Yes. Does it necessarily follow purchaser motivation shall be the test for determining
that he also has to sell his chicken business? No. It’s really whether the registered mark has become the generic
up to him if he wants to sell the trademark and the goods. name of goods or services on or in connection with which
it has been used. (n)
When shall such assignment and transfer be considered as (c) At any time, if the registered owner of the
null and void? mark without legitimate reason fails to use the mark
According to Section 149.2, when such assignment or within the Philippines, or to cause it to be used in the
transfer mislead the public, particularly as regards the Philippines by virtue of a license during an uninterrupted
nature, source, manufacturing process, characteristics, or period of three (3) years or longer.
suitability for their purpose, of the goods or services to
which the mark is applied. So anything that will fall under 151.2. Notwithstanding the foregoing provisions, the
Section 123, that is void. court or the administrative agency vested with jurisdiction
to hear and adjudicate any action to enforce the rights to a
What are the formalities of the transfer or assignment of registered mark shall likewise exercise jurisdiction to
the application? Let’s say we have an applicant X who is determine whether the registration of said mark may be
applying for a trademark regsitration of his logo, he is tired cancelled in accordance with this Act. The filing of a suit to
and he wants to sell the application, what are the enforce the registered mark with the proper court or
formalities? agency shall exclude any other court or agency from
 Shall be in writing assuming jurisdiction over a subsequently filed petition to
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cancel the same mark. On the other hand, the earlier filing consecutive years is a ground for
of petition to cancel the mark with the Bureau of Legal cancellation. No prescriptive period.
Affairs shall not constitute a prejudicial question that must
be resolved before an action to enforce the rights to same Actual use is required for the mark to continue. Under
registered mark may be decided. (Sec. 17, R.A. No. 166a) Section 152, there are excuses for non-‐use.
Note: Not read in class. Added for review purposes. Section 152. Non-‐use of a Mark When Excused. -‐ 152.1. Non-‐
use of a mark may be excused if caused by circumstances
You already know this – cancellation cases. arising independently of the will of the trademark owner.
Lack of funds shall not excuse non-‐use of a mark.
Where to file?
Bureau of Legal Affairs. 152.2. The use of the mark in a form different from the
form in which it is registered, which does not alter its
Who can file? distinctive character, shall not be ground for cancellation
Any person who believes that he is or will be damaged by or removal of the mark and shall not diminish the
the registration of a mark. protection granted to the mark.
What is the prescriptive period? 152.3. The use of a mark in connection with one or more of
5 years from the date of registration. the goods or services belonging to the class in respect of
which the mark is registered shall prevent its cancellation
What are the grounds for cancellation? or removal in respect of all other goods or services of the
The mark or name is not registerable under Section 123. same class.
Everything there is a ground for the cancellation of the
trademark. 152.4. The use of a mark by a company related with the
registrant or applicant shall inure to the latter's benefit,
We have other grounds for cancellation not provided in and such use shall not affect the validity of such mark or of
Section 123. These grounds have no prescriptive period. The its registration: Provided, That such mark is not used in
cancellation case may be filed at any time. such manner as to deceive the public. If use of a mark by a
person is controlled by the registrant or applicant with
Grounds for cancellation a prescriptive period: respect to the nature and quality of the goods or services,
1. The registered mark becomes the generic name for such use shall inure to the benefit of the registrant or
the goods or services, or a portion thereof, for applicant. (n)
which it is registered
2. The registered mark has been abandoned
What are the excuses for non-‐use?
So abandonment of the registered mark
1. Non-‐use caused by circumstances arising
even if it is beyond the 5-‐year period from
independently of the will of the trademark owner
registration like it was abandoned after 9
What if the trademark owner is kidnapped
years, then a petition for cancellation may
or kept in detention for 5 years? Or if he is
be filed.
in coma? He was not able to use the mark.
3. The registration was obtained fraudulently or
Is lack of funds an excuse for non-‐use? No.
contrary to the provisions of RA 8293
Why bother register for a trademark if you
4. The registered mark is being used by, or with the
cannot use it for lack of funds?
permission of, the registrant so as to misrepresent
2. The use of a mark in a form different from the
the source of the goods or services on or in
form it which it is registered which does not alter
connection with which the mark is used
its distinctive character
So the registrant is using it to
So there are changes made in the
misrepresent.
registered mark. According to this section,
5. Failure to use the registered mark within the RP for
it shall not be a ground for cancellation or
an uninterrupted period of 3 years or longer
removal of the mark and shall not diminish
Diba we talked about declaration of actual
protection of the mark. If the mark is
use? Here, non-‐use of the mark for three
revised a little bit, it will still fall under the
protection of the registration. You cannot
algene c.
237
say that the trademark registrant is not connection with the sale, offering for sale, distribution,
using it; it was used but it was revised a advertising of any goods or services including other
little bit. preparatory steps necessary to carry out the sale of any
3. The use of a mark in connection with one or more goods or services on or in connection with which such use
of the goods or services belonging to the class in is likely to cause confusion, or to cause mistake, or to
respect of which the mark is registered deceive; or
Let’s say the mark is registered for 5
different goods but it is only being used in 155.2. Reproduce, counterfeit, copy or colorably imitate a
one and not for the 4 other goods to registered mark or a dominant feature thereof and apply
which the mark was attached, is there a such reproduction, counterfeit, copy or colorable imitation
non-‐use? No. It shall prevent its removal or to labels, signs, prints, packages, wrappers, receptacles or
cancellation in respect of all other goods advertisements intended to be used in commerce upon or
or services of the same class. in connection with the sale, offering for sale, distribution,
or advertising of goods or services on or in connection
Section 154. Cancellation of Registration. -‐ If the Bureau of with which such use is likely to cause confusion, or to
Legal Affairs finds that a case for cancellation has been cause mistake, or to deceive, shall be liable in a civil action
made out, it shall order the cancellation of the for infringement by the registrant for the remedies
registration. When the order or judgment becomes final, hereinafter set forth: Provided, That the infringement
any right conferred by such registration upon the takes place at the moment any of the acts stated in
registrant or any person in interest of record shall Subsection 155.1 or this subsection are committed
terminate. Notice of cancellation shall be published in the regardless of whether there is actual sale of goods or
IPO Gazette. (Sec. 19, R.A. No. 166a) services using the infringing material. (Sec. 22, R.A. No
166a)
Just like we have patent infringement, we also have
trademark infringement.
So that is infringement.
What is trademark infringement?
What is the test of infrigement in trademark? Do you have
 The use by others of a reproduction or colorable to copy exactly the logo? Can you make it a little bit
imitation of a registered trademark, tradename or
different?
service mark
The essential element of infringement is “colorable
 Without the consent of the registrant imitation.”
 With the purpose of causing to mislead or
misleading the public that such goods or services Colorable imitation has been defined as:
are those of the registrant 1. such a close or ingenious imitation as to be
calculated to deceive ordinary purchasers, or
What are protected from infringement? 2. such resemblance of the infringing mark to the
Only registered trademarks. If you have a trademark that original as to deceive an ordinary purchaser giving
you have been using for a long time and you are known in such attention as a purchaser usually gives, and to
that particular sector or community where you are using it cause him to purchase the one supposing it to be
as its owner or creator but you don’t register it, you cannot the other
sue for infrigement.
There are tests to determine WON colorable imitation
To be more specific, Section 155 tells us what constitutes exists.
infrigement. 1. Holistic Test -‐ Mandates that the entirety of the
marks in question must be considered in
Section 155. Remedies; Infringement. -‐ Any person who determining confusing similarity
shall, without the consent of the owner of the registered So you look at everything as a whole
mark: including the packaging.
2. Dominancy Test -‐ Infringement takes place:
155.1. Use in commerce any reproduction, counterfeit, a. if the competing trademark contains the
copy, or colorable imitation of a registered mark or the main or essential features of another, and
same container or a dominant feature thereof in b. confusion and deception is likely to result.
algene c.
238
Duplication is not necessary, nor

is it necessary that the infringing label
Who can file an infringement case?
should suggest an effort to imitate.
The owner of the registered mark against someone who
Duplication is not necessary for
infringes (copies or manufactures goods which bear the
infrigement to exist. We will discuss this in
same trademark or a colorable imitation thereof.)
detail when we look at the cases.
What can the registered trademark owner get out of that
Going back to this… I have a newspaper clipping. LV wants
infrigement case aside from stopping the particular
the billboard to be taken down where Lorna Tolentino was
infringer from continuing what he is doing? Damages. This
holding an LV bag. It was a billboard paid by Flawless where
is provided for under Section 156-‐157.
they promoted their promo – each client who spent a
certain amount of money on their products will get a
Section 156. Actions, and Damages and Injunction for
chance to win an LV bag during its monthly draw. LV looked
Infringement. -‐ 156.1. The owner of a registered mark may
at the bulletin board as an unauthorized use of their branch
recover damages from any person who infringes his
merchandise. So does it fall under this? If you look at “any
rights, and the measure of the damages suffered shall be
use or reproduction or advertising services”… Flawless
either the reasonable profit which the complaining party
here is promoting their business through the use of the LV
would have made, had the defendant not infringed his
bag. If it says “the winner will win an LV bag,” then there is
rights, or the profit which the defendant actually made out
no problem. But if you put the bag on the billboard, you try
of the infringement, or in the event such measure of
to ride on the popularity of the LV. The COO of Flawless
damages cannot be readily ascertained with reasonable
said that the LV associate in the PH was happy to make the
certainty, then the court may award as damages a
sale to them. Anyway, the promo is still on but they had to
reasonable percentage based upon the amount of gross
take down the billboard.
sales of the defendant or the value of the services in
connection with which the mark or trade name was used
Bar Question: Does the owner of a trademark have a right
in the infringement of the rights of the complaining party.
of property to prevent others from manufacturing,
(Sec. 23, first par., R.A. No. 166a)
producing, or selling the same article to which it is
attached?
156.2. On application of the complainant, the court may
Suggested answer: No, the right of a trademark owner is to
impound during the pendency of the action, sales invoices
prevent the use by others of his registered mark on similar
and other documents evidencing sales. (n)
goods manufactured, produced or sold by others.
156.3. In cases where actual intent to mislead the public or
Example: Does Nike have a right to prevent other
to defraud the complainant is shown, in the discretion of
companies from manufacturing shoes? Since Nike, which
the court, the damages may be doubled. (Sec. 23, first par.,
has a registered trademark, sells sporting goods (shoes,
R.A. No. 166)
shirts, socks, wrist bands), are other companies now
prevented from selling the same items because there’s a
156.4. The complainant, upon proper showing, may also be
trademark attached to the items? No. As long as the other
granted injunction. (Sec. 23, second par., R.A. No. 166a)
products are not using the registered trademark of Nike,
then there’s no problem. One can register for another
Section 157. Power of Court to Order Infringing Material
trademark for shoes, shirts, socks and wrists bands.
Destroyed. -‐ 157.1 In any action arising under this Act, in
which a violation of any right of the owner of the
Bar Question: Is fraud essential in the infrigement of
registered mark is established, the court may order that
trademark?
goods found to be infringing be, without compensation of
Suggested answer: No, the mere use of a similar mark likely
any sort, disposed of outside the channels of commerce in
to mislead the public is sufficient to constitute
such a manner as to avoid any harm caused to the right
infringement. There is no need that you have a fraudulent
holder, or destroyed; and all labels, signs, prints, packages,
intent. As long as one is using, selling, manufacturing, etc.
wrappers, receptacles and advertisements in the
that contain the trademark of another, that is already
possession of the defendant, bearing the registered mark
tantamount to infrigement.
or trade name or any reproduction, counterfeit, copy or
colorable imitation thereof, all plates, molds, matrices and
Where do you file an action for infrigement?
other means of making the same, shall be delivered up and
Regional Trial Court.
algene c.
239
destroyed. knowledge xxx. There can be a case where it is impossible

for X to know that there is already a registered trademark
157.2. In regard to counterfeit goods, the simple removal for the one that he or she is using.
of the trademark affixed shall not be sufficient other than
in exceptional cases which shall be determined by the Will that make X less of an infringer if he didn’t know? No.
Regulations, to permit the release of the goods into the He will still be an infriger. But if he did not know that such
channels of commerce. (Sec. 24, R.A. No. 166a) imitation is likely to cause confusion, mistake or deceive,
then there can be no award of damages. If he knows that
Note: Not read in class. Added for review purposes. the mark is registered and still uses it, then he is liable for
damages.
If he suffered loss of profits because somebody else is
selling the same goods or products for a cheaper price Such knowledge is presumed if the registrant gives notice
(fake items), then he can ask for damages. that his mark is registered by displaying with the mark the
words “Registered Trademark” or the letter R within a
The infringer is liable to the owner of the registered mark circle or if the defendant had otherwise actual notice of
for: the registration.
1. Damages, which may either be:
a. the reasonable profit which the owner This thing (thermos) is registered. The brand is OGGI and
would have realized if not for the there’s a TM here which means that it is registered. I
infringement, or bought this from the States so there’s a different way of
b. the profit which the infringer actually made telling people that the mark is registered. In other words,
out of the infringement, or as long as the packages contain the word TM or the R, then
c. a certain percentage over the gross sales of it is already presumed that anyone who uses it has
infringer, in the event such measure of knowledge of the registered mark.
damages cannot be readily ascertained
2. Impounding of sales invoices and other documents Section 159. Limitations to Actions for Infringement. -‐
evidencing sales Notwithstanding any other provision of this Act, the
3. Damages may be doubled in cases where actual remedies given to the owner of a right infringed under
intent to mislead the public or to defraud the this Act shall be limited as follows:
registered owner
4. Injunction to prevent further use of trademark 159.1. Notwithstanding the provisions of Section 155
5. Destruction of goods found to be infringing and all hereof, a registered mark shall have no effect against any
related paraphernalia person who, in good faith, before the filing date or the
priority date, was using the mark for the purposes of his
Section 158. Damages; Requirement of Notice. -‐ In any suit business or enterprise: Provided, That his right may only
for infringement, the owner of the registered mark shall be transferred or assigned together with his enterprise or
not be entitled to recover profits or damages unless the business or with that part of his enterprise or business in
acts have been committed with knowledge that such which the mark is used.
imitation is likely to cause confusion, or to cause mistake,
or to deceive. Such knowledge is presumed if the So this is the prior user. He has already been using the mark
registrant gives notice that his mark is registered by prior to the registration of another.
displaying with the mark the words '"Registered Mark" or
the letter R within a circle or if the defendant had Let’s say X is using this mark for his products for the longest
otherwise actual notice of the registration. (Sec. 21, R.A. time but he did not register. Somehow, Y happens to create
No. 166a) the same trademark and he registered it. Can Y prevent X
from using that mark? No.
Are damages automatic?
No. Can X sell the trademark that he was using? No. But he can
sell his business that uses that particular mark which he has
In an infringement case, what is the normal judgment or been using prior to the registration of Y. Provided, That his
decision? To order the infringer to stop what he or she is right may only be transferred or assigned together with his
doing. Damages are not automatic unless there was
algene c.
240
enterprise or business or with that part of his enterprise or

business in which the mark is used.
Take note that the limitations of Section 159.3 shall only
apply to innocent infringers. If the printer already sees an
Remember, the mark of X was not registered but he used it
“R” and pinrint niya yun, then he is liable.
for his products. Can he sell his products? Of course, he can
dispose but he cannot sell the mark because it is not
What if the owner of the registered mark discovers before
registered. He only has the right to use the mark.
the magazine is disseminated but everything has been
printed. According to Section 159.3, the owner cannot
Section 159.2. Where an infringer who is engaged solely in
prevent them from distribution.
the business of printing the mark or other infringing
materials for others is an innocent infringer, the owner of
Section 160. Right of Foreign Corporation to Sue in
the right infringed shall be entitled as against such
Trademark or Service Mark Enforcement Action. -‐ Any
infringer only to an injunction against future printing.
foreign national or juridical person who meets the
requirements of Section 3 of this Act and does not engage
Yung mga printing press… You have this customer Y who in business in the Philippines may bring a civil or
asks you to print 1 million copies. If the printer didn’t know administrative action hereunder for opposition,
that the same mark to be printed is registered, then he is cancellation, infringement, unfair competition, or false
not liable for damages. However, he can only stopped by designation of origin and false description, whether or not
the court through an injunction. it is licensed to do business in the Philippines under
existing laws. (Sec. 21-‐A, R.A. No. 166a)
Section 159.3. Where the infringement complained of is
contained in or is part of paid advertisement in a You already know this, the same with patents.
newspaper, magazine, or other similar periodical or in an
electronic communication, the remedies of the owner of Does a foreign corporation have the right to sue in
the right infringed as against the publisher or distributor trademark or service mark enforcement action?
of such newspaper, magazine, or other similar periodical Yes, under Art. 160, it may bring a civil or administrative
or electronic communication shall be limited to an action for opposition, cancellation, infringement, or unfair
injunction against the presentation of such advertising competition, provided:
matter in future issues of such newspapers, magazines, or  It meets the requirements of Sec. 3
other similar periodicals or in future transmissions of such  It does not engage in business in the Philippines,
electronic communications. The limitations of this whether or not it is licensed to do business in the
subparagraph shall apply only to innocent infringers: Philippines under existing law.
Provided, That such injunctive relief shall not be available
to the owner of the right infringed with respect to an issue One thing you have to remember, whether it is a Filipino or
of a newspaper, magazine, or other similar periodical or an a foreign corporation or entity or person, you can only sue
electronic communication containing infringing matter for infringement if you have a registered trademark here. If
where restraining the dissemination of such infringing you do not have a registered trademark, what can you file
matter in any particular issue of such periodical or in an instead? An action for cancellation or opposition.
electronic communication would delay the delivery of
such issue or transmission of such electronic Section 161. Authority to Determine Right to Registration. -‐
communication is customarily conducted in accordance In any action involving a registered mark, the court may
with the sound business practice, and not due to any determine the right to registration, order the cancellation
method or device adopted to evade this section or to of a registration, in whole or in part, and otherwise rectify
prevent or delay the issuance of an injunction or the register with respect to the registration of any party to
restraining order with respect to such infringing matter. the action in the exercise of this. Judgment and orders
(n) shall be certified by the court to the Director, who shall
make appropriate entry upon the records of the Bureau,
So, the same. Diba you pay for an advertisement? You say and shall be controlled thereby. (Sec. 25, R.A. No. 166a)
“Please give me a whole page advertisement for this”
Malay ba nung billboard maker or newspaper company na The same as patent, in infrigement cases, the RTC may
that mark na you are going to advertise is registered pala, cancel a registered trademark. Let’s go to tradenames.
so wala siyang liability.
algene c.
241
Let’s go to tradenames. What cannot be registered as a

Can P&G sell “Tide”? Yes. Does it have to sell the soap
tradename?
associated with Tide? No. P&G can call it using another
brand.
Section 165. Trade Names or Business Names. -‐ 165.1. A
name or designation may not be used as a trade name if by But if P&G decides to sell the tradename, it also has to sell
its nature or the use to which such name or designation its goods. Everything that is under that corporation is
may be put, it is contrary to public order or morals and if, included. Any change in the ownership of a trade7name
in particular, it is liable to deceive trade circles or the shall be made with the transfer of the enterprise or part
public as to the nature of the enterprise identified by that thereof identified by that name.
name.
Section 166. Goods Bearing Infringing Marks or Trade
165.2.(a) Notwithstanding any laws or regulations Names. -‐ No article of imported merchandise which shall
providing for any obligation to register trade names, such copy or simulate the name of any domestic product, or
names shall be protected, even prior to or without manufacturer, or dealer, or which shall copy or simulate a
registration, against any unlawful act committed by third mark registered in accordance with the provisions of this
parties. Act, or shall bear a mark or trade name calculated to
induce the public to believe that the article is
Let’s say we have a company Phoenix Petroleum Inc. Do manufactured in the Philippines, or that it is manufactured
you think “Phoenix Petroleum Inc.” tradename is in any foreign country or locality other than the country or
registered with the Bureau of Trademark? locality where it is in fact manufactured, shall be admitted
No. They can be registered with the SEC. You register to entry at any customhouse of the Philippines. In order to
trademarks and service marks (signs, logos, etc.) with the aid the officers of the customs service in enforcing this
Bureau of Trademarks; you do not register tradenames prohibition, any person who is entitled to the benefits of
there. Ang registed lang is the logo of the company. The this Act, may require that his name and residence, and the
name of the company is registered with another entity like name of the locality in which his goods are manufactured,
SEC for corporations. a copy of the certificate of registration of his mark or
trade name, to be recorded in books which shall be kept
Can you sue for infrigement even if the tradename is not for this purpose in the Bureau of Customs, under such
registered with the IPO? Yes. regulations as the Collector of Customs with the approval
of the Secretary of Finance shall prescribe, and may
What are acts which are deemed us unlawful? furnish to the said Bureau facsimiles of his name, the name
of the locality in which his goods are manufactured, or his
(b) In particular, any subsequent use of the trade name by registered mark or trade name, and thereupon the
a third party, whether as a trade name or a mark or Collector of Customs shall cause one (1) or more copies of
collective mark, or any such use of a similar trade name or the same to be transmitted to each collector or to other
mark, likely to mislead the public, shall be deemed proper officer of the Bureau of Customs. (Sec. 35, R.A. No.
unlawful. 166)
Can a different entity use San Miguel as a brand of slippers?

There are so many direct sellers who claim to sell imported
No, that is a tradename. Only San Miguel Corporation can
goods. There is this Salad Master brand, one product
use the tradename San Miguel.
(frying fan) costs P59,995. A Nutritech brand came to me
and sold the same products claiming na their items are
Section 165.3. The remedies provided for in Sections 153 to
made from Germany. When I checked the website, there is
156 and Sections 166 and 167 shall apply mutatis mutandis.
nothing there that says “Made in Germany” but only
“Importer and Distributor of High-‐end Products.” Well,
165.4. Any change in the ownership of a trade name shall
their frying fans are not as expensive as the Salad Master,
be made with the transfer of the enterprise or part
only P39,995. I asked the agent, “Why are you selling
thereof identified by that name. The provisions of
something which you claim that is made in the Germany but
Subsections 149.2 to 149.4 shall apply mutatis mutandis.
nothing indicates such in the packaging, site, product?” Kasi
baka made in the Philippines lang yan. That’s false
If you have Procter & Gamble Corporation, this is a
desgination, if you put something that is not true.
tradename. Ang trademark niya is “Tide”, “Mr. Clean”, etc.
algene c.
242
We also have Honda. Their plant was flooded during one of

the storms. They manufactured the cars there. While the
Section 167.4. The registration of a collective mark, or an
plant is not yet working, they get the cars from Thailand for
application therefor shall not be the subject of a license
a few months. Those cars, before they come in, had to be
contract. (Sec. 40, R.A. No. 166a)
placed “Made in Thailand” para hindi ma-‐confuse with
those made here in the Philippines.
There is already an agreement between the entities during
the application. Perhaps, one will apply then the others will
Let’s now talk about collective marks.
use. It depends to them. The parties have to comply with
the agreement.
Section 167. Collective Marks. -‐ 167.1. Subject to
Subsections 167.2 and 167.3, Sections 122 to 164 and 166
Can they include other entities for the license of the
shall apply to collective marks, except that references
collective mark?
therein to "mark" shall be read as "collective mark".
No. It stops there.
167.2.(a) An application for registration of a collective
If there are changes in the agreement, they have to go to
mark shall designate the mark as a collective mark and
the Bureau of Trademarks.
shall be accompanied by a copy of the agreement, if any,
governing the use of the collective mark.
If X has his own trademark, then he can enter into licensing
contracts – TTAs. So that’s the difference between
(b) The registered owner of a collective mark shall notify
trademark and collective mark.
the Director of any changes made in respect of the
agreement referred to in paragraph (a).
What is unfair competition?
The employment of deception or any other means contrary
Let’s say you have entity A, B and C. They manufacture to good faith by which one shall pass off the goods
different products. They can apply for one trademark for manufactured by him or in which he deals, or his business,
their products so they have collective mark. A, B and C shall or services for those of the one having established such
submit a copy of the agreement on how they are going to goodwill.
use the collective mark.
Who can file an action for unfair competition?
Can you file a petition to cancel a collective mark? Yes. One who may not have a registered trademark but already
has a registered good will in the community.
Section 167.3. In addition to the grounds provided in
Section 149, the Court shall cancel the registration of a Going back to the case of Ang Tibay, let us say that “Ang
collective mark if the person requesting the cancellation Tibay” was not registered by Teodoro so he could not file
proves that only the registered owner uses the mark, or an infrigement case if someone copies the “Ang Tibay”
that he uses or permits its use in contravention of the trademark but because he has already established a good
agreements referred to in Subsection 166.2 or that he uses will by using that particular phrase for so long and so
or permits its use in a manner liable to deceive trade exclusively that is already identifed with his products, he
circles or the public as to the origin or any other common can file an action for unfair competition when somebody
characteristics of the goods or services concerned. else pretends to be selling Ang Tibay products.
Additional grounds: Who is protected against unfair competition?

1. Only the registered owner uses the mark
If it is only the registered owner who uses Section 168. Unfair Competition, Rights, Regulation and
it, then you do not need a collective mark but only Remedies. -‐ 168.1. A person who has identified in the mind
a trademark. of the public the goods he manufactures or deals in, his
2. That he uses or permits its use in contravention of business or services from those of others, whether or not
the agreements referred to in Subsection 166.2 a registered mark is employed, has a property right in the
3. That he uses or permits its use in a manner liable goodwill of the said goods, business or services so
to deceive trade circles or the public as to the identified, which will be protected in the same manner as
origin or any other common characteristics of the other property rights.
goods or services concerned.
algene c.
243
What about those who have registered trademarks? Can

2. Use of artifice or device to induce the false belief
they still file for unfair competition? Yes, as long as one has
that one’s goods are those of another
established a good will already.
3. False statements in the course of trade
4. Any act contrary to good faith calculated to
Who can be punished for unfair competition in general?
discredit the goods of another
Section 168.2. Any person who shall employ deception or
What is the test of unfair competition?
any other means contrary to good faith by which he shall
Whether certain goods have been clothed with an
pass off the goods manufactured by him or in which he
appearance likely to deceive the ordinary purchaser
deals, or his business, or services for those of the one
exercising ordinary care.
having established such goodwill, or who shall commit any
acts calculated to produce said result, shall be guilty of
Bar Question: Is fraud essential in unfair competition?
unfair competition, and shall be subject to an action
Suggested answer: Yes, there must be fraudulent intent to
therefor.
pass off one’s goods as those of another.
Section 168.3 provides for the acts that are considered as
Who has jurisdiction over actions for infringement of
unfair competition. If you look at it, it is not that simple. It’s
trademark and unfair competition?
quite long. The essence of unfair competition is “to
Regional Trial Court. (both for infringement and unfair
pretend that you are selling the goods of another”; riding
competition)
on with another’s goodwill or established name.
Section 168.4. The remedies provided by Sections 156, 157
Section 168.3. In particular, and without in any way limiting
and 161 shall apply mutatis mutandis. (Sec. 29, R.A. No.
the scope of protection against unfair competition, the
166a)
following shall be deemed guilty of unfair competition:
(a) Any person, who is selling his goods and gives What are the remedies for unfair competition?
them the general appearance of goods of another The same as the remedies for infringement of trademarks
manufacturer or dealer, either as to the goods themselves and tradenames.
or in the wrapping of the packages in which they are
contained, or the devices or words thereon, or in any Almost every infringement case filed includes unfair
other feature of their appearance, which would be likely competition because the remedies are the same: injunction,
to influence purchasers to believe that the goods offered receipts are impounded, damages, etc. Of course for unfair
are those of a manufacturer or dealer, other than the competition, fraudulent intent is required.
actual manufacturer or dealer, or who otherwise clothes
the goods with such appearance as shall deceive the public Section 169. False Designations of Origin; False Description
and defraud another of his legitimate trade, or any or Representation. -‐ 169.1. Any person who, on or in
subsequent vendor of such goods or any agent of any connection with any goods or services, or any container
vendor engaged in selling such goods with a like purpose; for goods, uses in commerce any word, term, name,
(b) Any person who by any artifice, or device, or symbol, or device, or any combination thereof, or any false
who employs any other means calculated to induce the designation of origin, false or misleading description of
false belief that such person is offering the services of fact, or false or misleading representation of fact, which:
another who has identified such services in the mind of (a) Is likely to cause confusion, or to cause
the public; or mistake, or to deceive as to the affiliation, connection, or
(c) Any person who shall make any false statement association of such person with another person, or as to
in the course of trade or who shall commit any other act the origin, sponsorship, or approval of his or her goods,
contrary to good faith of a nature calculated to discredit services, or commercial activities by another person; or
the goods, business or services of another. (b) In commercial advertising or promotion,
misrepresents the nature, characteristics, qualities, or
Note: Not read in class. Added for review purposes. geographic origin of his or her or another person's goods,
services, or commercial activities, shall be liable to a civil
The following are guilty of unfair competition: action for damages and injunction provided in Sections 156
1. Making one’s goods appear as the goods of and 157 of this Act by any person who believes that he or
another she is or is likely to be damaged by such act.
algene c.
244
US vs. KY BURZ: Was there an unfair competition in this

169.2. Any goods marked or labelled in contravention of case? Yes. The tradename “Meridian” was placed beside
the provisions of this Section shall not be imported into the watch so they are passing on watches that are those of
the Philippines or admitted entry at any customhouse of Meridian. If registered, the case is for infringement. If not,
the Philippines. The owner, importer, or consignee of then unfair competition.
goods refused entry at any customhouse under this From the FT of the case:
section may have any recourse under the customs revenue Greilsammer Hermanos import from a European
laws or may have the remedy given by this Act in cases manufacturer watches of a’ certain make and standard,
involving goods refused entry or seized. (Sec. 30, R.A. No. engrave upon them their trade-‐mark, put them on the
166a) market under the trade name of Meridian watches, and
have advertised them and established a market for them.
Note: Not read in class. Added for review purposes. They do not claim to be the manufacturers of these
watches, but they are dealers in watches and every sale by
Lying or saying that your product is 100% Made in the USA them of a watch under the trade name thus adopted and
tapos hindi pala. So that’s not allowed. You have to present advertised implies that their skill and judgment, as
your product as it is. watchmakers and jewellers, has been exercised in
ascertaining that such watch is up to the standard
Section 170. Penalties. -‐ Independent of the civil and established for watches known as Meridian watches.
administrative sanctions imposed by law, a criminal Held: That defendant, who imported similar
penalty of imprisonment from two (2) years to five (5) watches from the same manufacturer, and advertised and
years and a fine ranging from Fifty thousand pesos sold them under the name of, and as and for Meridian
(P50,000) to Two hundred thousand pesos(P200,000), watches, is guilty of a violation of section 6 of Act No. 666
shall be imposed on any person who is found guilty of prohibiting and penalizing the unauthorized use of the
committing any of the acts mentioned in Section 155, trade name of another.
Section 168 and Subsection 169.1. (Arts. 188 and 189,
Revised Penal Code) ANA ANG vs. TEODORO: Can Ang be prevented from using
the “Ang Tibay” trademark? Yes.
For infringement of patent, there’s a criminal liability if If you are using the registered trademark of
there is a repetition of repetition. But under Section 170, another on your goods, then you are not allowed to do it. It
there is no requirement for repetition. You can file directly constitutes infringement. What about the limitations under
an criminal case under Section 155, 168 and 169. Section 148? Diba the name of the person is “Ang”, can she
not use the word “Ang Tibay” to identify her products? She
DISTINCTIONS: can use “Ang” if it is her name. The exception under
Section 148 is only for the name. She cannot use the “Ang
As to: Infrigement of Unfair Tibay” so not the “Tibay.”
Trademark Competition
Cause of action Unathorized use Passing of one’s LIM HOA vs. DIRECTOR OF PATENTS: The issue is WON the
of a registered goods as those of mark to be registered is confusingly similar with the mark
mark another already registered.
Fraudulent intent NOT necessary Necessary The Bureau of Patents, before the IPO came about,
Necessity of Registration is a Registration is did not allow the registration of the two hens. So confusing
registration pre-‐requisite not required siya.
Class of goods Must be of similar Need not be of From the FT of the case:
involved class the same class After a careful examination of the facts above
mentioned, and after comparing the two brands, we do not
hesitate to say and to hold that there is such similarity
Infringement of trademark must be of the similar class. What if
between the two brands as to cause confusion in the mind
it is an internationally well-‐known mark that is registered
of the public that buys the food seasoning product on the
here? That entity can file an infrigement of its trademark even
strength and on the indication of the trademark or brand
if the goods are not similar.
identifying or distinguishing the same.
CASES
HENG and DEE vs. WELLINGTON DEPARTMENT STORE: This
“Wellington Company” is a tradename and a trademark.
algene c.
245
What cannot be registered? Something that is confusingly

but that such trademarks as "Verbena Povil" and "Lupel
similar with an existing trademark.
Verbena" had long been in use by respondent Pellicer on
Heng and Dee had an existing trademark
his own cosmetic products, and that, as a matter of fact, he
registration for “Wellington”. The Wellington Department
is the holder of the certificate of registration from the
Store was able to register the tradename. So the issue is
Patents Office for the trademark "Lupel Verbena". Said
WON WDS infringes the tradename and trademark of Heng
facts preclude us from concluding that the trademark in
and Dee? No because there is no possibility of confusion.
question has become distinctive of applicant's goods within
Besides Wellington Department Store does not sell
the meaning of the law.
Wellington brand products. It sells different products by
different manufacturers so you cannot confuse the
ARCE SONS vs. SELECTA BISCUITS: Was Arce & Sons able to
department store with the manufacturing company.
register the trademark “Selecta”? Is Selecta capable of
Is “Wellington” capable of registration? Wellington
registration under Section 123? No, because it is a
is really a term that is not capable of registration. Even if it
descriptive word for biscuits or ice cream but it has already
is registered by Heng and Dee, since it is not registrable,
acquired a secondary meaning. Arce & Sons has been using
then Heng and Dee cannot prevent another entity from
“Selecta” for the longest time for their ice cream, it’s just
using the same term because it is geographical.
that it was not registered.
From the FT of the case: While there is similarity
The trademark “Selecta” was already sold but they
between the trademark or trade name "Wellington
did not dispose of their products. That’s why they have
Department Store," no confusion or deception can possibly
Arce Dairy which manufacture tastier and creamier ice
result or arise from such similarity because the latter is a
cream.
"department store," while the former does purport to be
so. The name "Wellington" is admittedly the name of the
To allow the defendant here to use the word
trademark on the shirts, pants, drawers, and other articles
"Selecta" in spite of the fact that this word has already
of wear for men, women and children, whereas the name
been adopted and exploited by Ramon Arce and by his
used by the defendant indicates not these manufactured
family thru the organization of Arce Sons and Company, for
articles or any similar merchandise, but a department store.
the maintenance of its goodwill, for which said plaintiff and
Neither can the public be said to be deceived into
its predecessor have spent time, effort and fortune, is to
the belief that the goods being sold in defendant's store
permit business pirates and buccaneers to appropriate for
originate from the plaintiffs, because the evidence shows
themselves and to their profit and advantage the trade
that defendant's store sells no shirts or wear bearing the
names and trade marks of well established merchants with
trademark "Wellington," but other trademarks.
all their attendant good will and commercial benefit.
Certainly, this cannot be allowed, and it becomes the duty
EAST PACIFIC MERCHANDISING vs. DIR. OF PATENTS: What
of the court to protect the legitimate owners of said trade-‐
is normally the defense when a cancellation case is filed on
names and trade-‐marks, for under the law, the same
the ground that the trademark cannot be registered under
constitute one kind of property right entitled to the
Section 123? That it has already acquired a secondary
necessary legal protection.
meaning. However, the applicant must prove that he has
xxx In view of the foregoing, we hold that the
used it for so long and so exclusively that it has been
Director of Patents committed an error in dismissing the
identified by the public as associated with the product.
opposition of petitioner and in holding that the registration
of the trade-‐mark 'SELECTA' in favor of respondent will not
The claim that the petitioner is entitled to
cause damage to petitioner, and consequently, we hereby
registration because the term "Verbena" has already
reverse his decision.
acquired a secondary significance is without merit. The
provisions of law (Rep. Act No. 166, sec. 4) require that the
October 7, 2014
trademark applied for must have "become distinctive of the
applicant's goods", and that a prima facie proof of this fact
CONTINUATION OF CASES
exists when the applicant has been in the "substantially
exclusive and continuous use thereof as a mark or
CHUA CHE vs. PHIL. PATENT OFFICE: Under what provision
tradename ..for five years next preceding the date of the
of law should the registration fall?
filing of the application for its registration".
Here it appears not only that applicant and his
We find no merit in the above contention, for it has
assignor(Pua) only began use of the alleged mark in the
been held that while it is no longer necessary to establish
year 1947, the same year when the application was filed;
algene c.
246
that the goods of the parties possess the same

descriptive
algene c.
247
properties, as previously required under the Trade Mark Act

of 1905, registration of a trademark should be refused in
On the other issue, we find no cogent reason to
cases where there is a likelihood of confusion, mistake, or
disagree with the Director of Patents that "considering the
deception, even though the goods fall into different
similarities in appearance and sound between the marks
categories. (Application of Sylvan Sweets Co., 205 F. 2nd,
AMBISCO and NABISCO, the nature and similarity of the
207.) The products of appellee are common household
products of the parties together with the fact that
items nowadays, in the same manner as laundry soap. The
opposer's NABISCO has been used in commerce in the
likelihood of purchasers to associate those products to a
Philippines for more than fifty five (55) years before
common origin is not far-‐fetched. Both from the standpoint
AMBISCO was adopted by applicant, confusion of
of priority of use and for the protection of the buying public
purchasers is likely.
and, of course, appellee's rights to the trademark "X-‐7", it
Thus "Celdura" and "Corduara" were held to be
becomes manifest that the registration of said trademark in
confusingly similar in sound when applied to merchandise
favor of applicant-‐appellant should be denied.
of the same descriptive properties (Celanese Corp. of
America vs. Du Pont, 154 F. 2nd 146, 148); and "Lusolin" was
MEAD JOHNSON vs. VAN DORP: Even if the two marks are
considered as an infringement of the trademark "Sapolin"
for the two goods, they are not confusingly similar with
for the same reason (Sapolin Co. vs. Balmaceda, et al., 67
each other. So the holistic test was applied here. If you look
Phil. 705).
at the two packages as a whole, you will see that they are
different.
ETEPHA vs. DIRECTOR OF PATENTS: Radio advertisements
are not mentioned. Just take note of the discussion of the
We have examined the two trademarks as they
Supreme Court.
appear in the labels attached to the containers which both
petitioner and respondent display for distribution and sale
To the question: May trademark ATUSSIN be
and we are impressed more by the dissimilarities than by
registered, given the fact that PERTUSSIN, another
the similarities appearing therein in the same manner as the
trademark, had been previously registered in the Patent
Director of the Patent Office, and because of this
Office? — the Director of Patents answered affirmatively.
impression we are persuaded that said Director was
Hence this appeal.
justified in overruling petitioner's opposition. Hence, we are
We take a casual look at the two labels — without
not prepared to say that said Director has erred in
spelling out the details — bearing in mind the easy-‐to-‐
overruling said opposition.
remember earmarks thereof. Respondent's label
underscores the trademark Atussin in bold, block letters
OPERATORS, INC. vs. DIRECTOR OF PATENTS: If you
horizontally written. In petitioner's, on the other hand,
noticed, in the two cases that we discussed “Alacta and
Pertussin is printed diagonally upwards and across in
Alaska” and “Nabisco and Ambisco”… They are both
semiscript style with flourishes and with only the first letter
confusingly similar with each other but the rulings of the
"P" capitalized. Each label plainly shows the source of the
Supreme Court are different. In the first case, the SC said
medicine: petitioner's at the foot bears "Etepha Ltd. Schaan
used the holistic test and explained the factual details on
Fl", and on top, "Apothecary E. Taeschner's"; respondent's
why they are different even if they are used for the same
projects "Westmont Pharmaceuticals, Inc. New York, USA"
xxx – milk.
at the bottoms, and on the lower left side the word
In this case, we have Nabisco (Filipino corporation)
"Westmont" upon a white diamond shaped enclosure and
and Ambisco (a foreign corporation) which has a partner
in red ink — a color different from that of the words above
here in the Philippines. The partner here wants to distribute
and below it. Printed prominently along the left, bottom
Ambisco products but they were not allowed to register.
and right edges of petitioner's label are indications of the
The SC here used the dominancy test.
use: "for bronchial catarrh — whopping-‐cough — coughs
We don’t know how the SC would rule. We don’t
and asthma". Respondent's for its part briefly represents
know what the SC considers as confusingly similar. We
what its produce actually is -‐ a "cough syrup". The two
should not stick to the factual details. We have to know the
labels are entirely different in colors, contents,
rules that there is a holistic test that is being used. We
arrangement of words thereon, sizes, shapes and general
should know that there is a dominancy test. Most of all, we
appearance. The contrasts in pictorial effects and appeals
must know the bottom line. Under Section 123 D, Ambisco
to the eye is so pronounced that the label of one cannot be
cannot be registered because it is identical or confusingly
mistaken for that of the other, not even by persons
similar to the already registered mark for the same goods.
unfamiliar with the two trademarks.
So, definitely, under Section 123, it cannot be registered.
algene c.
248
BRISTOL MYERS vs. DIRECTOR OF PATENTS: Same ruling

preparations — namely: "lipstick, creme rouge, compact
with the case of Etepha.
rouge, cleansing cream, day cream, night cream, massage
cream, face lotion, astringent, face powder, powder
In determining whether two trademarks are
compacts, cosmetics for lashes, brows, and hair, hair
confusingly similar, the test is not simply to take their
pencils, nail polish, perfumes, and toilet waters — and it is
words and compare the spelling and pronunciation of said
not claimed that Ngo Guan uses or intends to use its
words. Rather, it is to consider the two marks in their
"Tango" trademark on articles of this kind.
entirety, as they appear in the respective labels, in relation
to the goods to which they are attached. Said rule was
STERLING PRODUCTS vs. FARBENFABRIKEN BAYER: Here,
enunciated by this by this Court through Justice Felix
we have again a registration case.
Bautista Angelo in Mead Johnson & Co. vs. N.V.J Van Dorp,
Ltd., L,17501, April 27, 1963, thus:
The Ang Tibay doctrine, we believe, is not to be
It is true that between petitioner's trademark
read as shunting aside the time-‐honored teaching that he
"ALACTA" and respondent's "ALASKA" there are
who comes into equity must do so with clean hands.
similarities in spelling, appearance and sound for
Plaintiff cannot now say that the present worth of its
both are composed of six letters of three syllables
BAYER trademarks it owes solely to its own efforts; it is not
each and each syllable has the same vowel, but in
insulated from the charge that as it marketed its medicines
determining if they are confusingly similar a
it did so with an eye to the goodwill as to quality that
comparison of said words is not the only
defendants' predecessor had established.
determining factor. The two marks in their entirety
There is no whittling away of the identity of
as they appear in the respective labels must also be
plaintiff's trademarks. Plaintiff is not the first user thereof
considered in relation to the goods to which they
in the Philippines. The trademarks do not necessarily link
are attached. The discerning eye of the observer
plaintiff with the public. Plaintiff must show injury; it has
must focus not only on the predominant words but
not. On the contrary, representations as to the place of
also on the other features appearing in both labels
manufacture of plaintiff's medicines were untrue,
in order that he may draw his conclusion whether
misleading. Plaintiff could still be tagged with the same
one is confusingly similar to the other.
deception "which (it) complains of in the defendant(s)."
Applying this test to the trademarks involved in
Appropriate it is to recall here our observation in the Ang
this case, it is at once evident that the Director of Patents
Tibay opinion, viz: "On our part may we add, without
did not err in finding no confusing similarity. For though the
meaning to be harsh, that a self-‐respecting person does
words "BIOFERIN" and "BUFFERIN" have the same suffix
not remain in the shelter of another but builds one of his
and similar sounding prefixes, they appear in their
own."
respective labels with strikingly different backgrounds and
Plaintiff, the owner in this country of the
surroundings, as to color, size and design.
trademarks BAYER for medicines, has thus forfeited its
right to protection from the use of the same trademarks by
October 8, 2014
defendants for products different therefrom — insecticides
and other chemicals.
ACOJE MINING vs. DIRECTOR OF PATENTS: Here, another

GEORGE W. LUFT vs. NGO GUAN: The products are not
registration case.
closely related. The "Tango" trademark is not confusingly
similar with the "Tangee" trademark, as contended by
Can it be said then that petitioner's application
petitioner herein, as to be likely to be mistaken for the
would be likely to cause confusion or mistake on the part of
latter by the unsuspecting public.
the buying public? The answer should be in the negative. It
does not defy common sense to assert that a purchaser
Moreover, the word "Tango" has a well
would be cognizant of the product he is buying. There is
established meaning, for it describes a particular dance that
quite difference between soy sauce and edible oil. If one is
is well known in the Philippines. In fact, respondent's label
in the market for the former, he is not likely to purchase the
includes the picture of a man and a woman dancing. Again,
latter just because of the trademark LOTUS. Even on the
"Tango" is used by Ngo Guan for no other product than hair
rare occasions that a mistake does occur, it can easily be
pomade, in which petitioner does not deal.
rectified.
Upon the other hand, petitioner's trademark is
Moreover, there is no denying that the possibility
used for specified chemicals, medical and pharmaceutical
algene c.
249
of confusion is remote considering the difference in the

type used, the coloring, the petitioner's trademark being
in
algene c.
250
yellow and red while that of the Philippine Refining

wherein the customer does not have access. Most of the
Company being in green and yellow, and the much smaller
time, we buy beer from restaurants and pubs where we
size of petitioner's trademark. When regard is had for the
simply order.
principle that the two trademarks in their entirety as they
appear in their respective labels should be considered in
Moreover, SMC's brand or trademark: "SAN
relation to the goods advertised before registration could
MIGUEL PALE PILSEN" is not infringed by ABI's mark:
be denied, the conclusion is inescapable that respondent
"BEER NA BEER" or "BEER PALE PILSEN." ABI makes its
Director ought to have reached a different conclusion.
own bottle with a bulging neck to differentiate it from
Petitioner has successfully made out a case for registration.
SMC's bottle, and prints ABI's name in three (3) places on
said bottle (front, back and bottle cap) to prove that it has
VICTORIAS MILLING vs. ONG SU: What cannot be
no intention to pass of its "BEER" as "SAN MIGUEL."
registered? Consist of shapes, diamond… In relation to
There is no confusing similarity between the
secondary meaning, what did Victorias Milling allege? Some
competing beers for the name of one is "SAN MIGUEL"
of the provisions under RA 8293 are new. I just want you to
while the competitor is plain "BEER" and the points of
be able to relate it. Just in case this diamond shape cannot
dissimilarity between the two outnumber their points of
be registered, can others be prevented from using it? What
similarity.
is the allegation of Victorias Milling? Since they have been
Petitioner ABI has neither infringed SMC's
using it for the long time and the design can be identified
trademark nor committed unfair competition with the
with them, then?
latter's SAN MIGUEL PALE PILSEN product. While its BEER
PALE PILSEN admittedly competes with the latter in the
It seems clear that the words "Valentine" and
open market, that competition is neither unfair nor
"Victorias" and the names and places of business of
fraudulent. Hence, we must deny SMC's prayer to suppress
Victorias Milling Company, Inc. and Ong Su are the
it.
dominant features of the trademarks in question. The
petitioner has not established such a substantial similarity
October 9, 2014
between the two trademarks in question as to warrant the
cancellation of the trademark 'Valentine'of the respondent
Su. The Director of Patents correctly ruled that he has no
jurisdiction over the issue of unfair competition. Under
SHANGRI-‐LA vs. CA: This first case of Shangri-‐la discussed
Section 27 of the Trade Mark Law, Republic Act No. 166,
whether or not a cancellation case can proceed together
after actions for unfair competition shall be brought before
with an infringement case. This is just a reiteration of what
the proper Court of First Instance.
we already learned. So, the two may proceed.
As what was mentioned, this case is not yet
ASIA BREWERY vs. CA: Actually, we are not really talking
finished. There was no ruling as to whether or not there
about infringement of trademark here because the logo of
was an infringement and as to whether or not the
San Miguel is different from the logo of Beer na Beer, we
registration of DGC shall be cnacelled. The answer to that is
are talking of the packaging. We learned that if you have a
found in the case of Shrangri-‐la vs. DGC.
packaging of your product that is attached to your
trademark, it is also included.
SHRANGRI-‐LA vs. DGC: DGCI was able to register the
The point of San Miguel is of all of the designs on
Shrangri-‐la name in October 1982. The Shrangri-‐La Group of
this planet, why something like theirs? Of course, it was
Companies was owned by the Kuok family and they have
ingeniously made that it would be different yet similar. But
been operating this chain of hotels since 1969. So,
the lawyers of Asia Brewery, they know the law. They know
sometime in 1975, they came up with a logo. A certain artist
the tests so they made sure that the dominant features of
was commissioned to design the logo. Why did Shrangri-‐la
the bottles are different from each other and yet, if you
want to cancel the mark of DGCI? They want to enter the
really look at it parang similar na. Asia Brewery here was
Philippines and construct hotels.
able to get out of the infrigement case.
The issue is who between the two registrant is
What about unfair competition? Would the
entitled to the mark Shrangri-‐la and the S logo. Is the prior
consumer be deceived in getting the products of Asia
use under RA 166 still applicable now? What kind of use is
Brewery, Beer na Beer, thinking that it is a San Miguel
required now under RA 8293? Actual use. You can register
product? The Supreme Court said no. Asia Brewery here is
but you have to use. Under the old law, you have to use
never pretending that it manufactures San Miguel
first before you can register. Is the prior use requirement
products. Normally, beer is purchased in a sari-‐sari store
algene c.
251
complied with by Shrangri-‐la? Yes. Prior use does

not
algene c.
252
require that it must be in the Philippines, pwede sa other

By reason of the respondent’s implausible and
countries.
insufficient explanation as to how and why out of the many
What about the dates when the artist came with
choices of words it could have used for its trade-‐name
the drawing vis-‐à-‐vis the registration? The design came out
and/or trademark, it chose the word "MACJOY," the only
after the registration. Mr. Ramon Syhunliong, DGC
logical conclusion deducible therefrom is that the
President, testified that the jeepney driver came up with
respondent would want to ride high on the established
the logo in December 1982. When did he register that mark?
reputation and goodwill of the MCDONALD’s marks, which,
October 1982. That means, he really copied the logo of
as applied to petitioner’s restaurant business and food
Shrangri-‐la. He also admitted that he travelled abroad and
products, is undoubtedly beyond question.
knew about Shrangri-‐la.
Thus, the IPO was correct in rejecting and denying
Just because you register the mark doesn’t mean
the respondent’s application for registration of the
that you are the owner or the creator of that mark.
trademark "MACJOY & DEVICE." As this Court ruled in
Registration of the mark is just a prima facie evidence of
Faberge Inc. v. IAC, citing Chuanchow Soy & Canning Co. v.
ownership. If somebody proves that he is the actual and
Dir. of Patents and Villapanta:
real owner of the mark, then the registration may be taken
When one applies for the registration of a
away.
trademark or label which is almost the same or very closely
The SC said that DGC was not the owner of the
resembles one already used and registered by another, the
mark. Under Section 2 of RA 166, for it to have been the
application should be rejected and dismissed outright, even
owner, the mark must not have been already appropriated
without any opposition on the part of the owner and user
(used) by someone else. At the time of respondent DGCI's
of a previously registered label or trademark, this not only
registration of the mark, the same was already being used
to avoid confusion on the part of the public, but also to
by the Shrangri-‐la, albeit abroad, of which DGCI's president
protect an already used and registered trademark and an
was fully aware.
established goodwill.
Is Shrangri-‐la guilty of infringement? With the
double infirmity of lack of two-‐month prior use, as well as
MCDONALDS vs. L.C. BIG MAK BURGER: There was unfair
bad faith in the respondent's registration of the mark, it is
competition here. McDonalds filed an action for unfair
evident that the petitioners cannot be guilty of
competition against LC Big Mak which operated as a fast
infringement. It would be a great injustice to adjudge the
food. LC sells sandwiches, hamburgers, etc. It filed an
petitioners guilty of infringing a mark when they are
application for the registration of the mark “Big Mak” of
actually the originator and creator thereof.
which McDonalds opposed.
According to LCBM, they have been using “Big
Admittedly, the CA was not amiss in saying that the
Mak” since 1979. Another allegation of LCBM, between the
law requires the actual use in commerce of the said trade
two words “Big Mak,” it is only the “Mak” that is valid
name and "S" logo in the Philippines. Hence, consistent
because “Big” is generic and descriptive; thus incapable of
with its finding that the bulk of the petitioners' evidence
exclusive appropriation.
shows that the alleged use of the Shangri-‐La trade name
The issue here is can the “Big Mac” of McDonalds
was done abroad and not in the Philippines, it is
be registered? Yes. The "Big Mac" mark, which should be
understandable for that court to rule in respondent's favor.
treated in its entirety and not dissected word for word, is
Unfortunately, however, what the CA failed to perceive is
neither generic nor descriptive. Generic marks are
that there is a crucial difference between the aforequoted
commonly used as the name or description of a kind of
Section 2 and Section 2-‐A of R.A. No. 166. For, while Section
goods, such as "Lite" for beer or "Chocolate Fudge" for
2 provides for what is registrable, Section 2-‐A, on the other
chocolate soda drink. Descriptive marks, on the other hand,
hand, sets out how ownership is acquired. These are two
convey the characteristics, functions, qualities or
distinct concepts.
ingredients of a product to one who has never seen it or
Read this case  (G.R. No. 159938)
does not know it exists, such as "Arthriticare" for arthritis
medication.
MCDONALDS vs. MACJOY: Did McJoy commit unfair
On the contrary, "Big Mac" falls under the class of
competition when it used the term “McJoy” as a brand of
fanciful or arbitrary marks as it bears no logical relation to
its food items? Because of the good will established by
the actual characteristics of the product it represents. As
McDonalds, anyone who tries to sell a product similar to
such, it is highly distinctive and thus valid. Significantly, the
that of McDonalds is also liable for unfair competition.
trademark "Little Debbie" for snack cakes was found
arbitrary or fanciful just like Big Mac.
algene c.
253
Did LCBM commit unfair competition when it used

“Big Mak”? According to the SC, if LCBM sold egg
DIAZ vs. PEOPLE: This is similar to the case of Asia Brewery.
sandwiches only instead of hamburger sandwiches, their
In this case, Diaz does not sell his jeans to the department
use of the "Big Mak" mark would not give their goods the
stores but in the tailoring shops. So he claims that there is
general appearance of "Big Mac" hamburgers. In such case,
no confusion because the customers will go to his shop and
there is only trademark infringement but no unfair
in fact, there is no reason that his customers would not be
competition. However, since respondents chose to apply
deceive in thinking that he is manufacturing the Levi’s
the "Big Mak" mark on hamburgers, just like petitioner's
jeans. There is no possibility daw of confusion.
use of the "Big Mac" mark on hamburgers, respondents
have obviously clothed their goods with the general
Moreover, based on the certificate issued by the
appearance of petitioners' goods.
Intellectual Property Office, "LS JEANS TAILORING" was a
registered trademark of Diaz. He had registered his
SEHWANI INC. vs. IN-‐N-‐OUT BURGER INC.: Why was it
trademark prior to the filing of the present cases. The
important to establish the “In-‐n-‐out” brand as an
Intellectual Property Office would certainly not have
internationally well-‐known brand? What is the applicable
allowed the registration had Diaz’s trademark been
provision under Section 123? If it is not internationally well-‐
confusingly similar with the registered trademark for LEVI’S
known, the mark of Sehwani can be registered.
501 jeans.
Section 123 E is the applicable provision. If it is an
Given the foregoing, it should be plain that there
internationally well-‐known brand which is not registered
was no likelihood of confusion between the trademarks
here, then someone else cannot register a mark which is
involved. Thereby, the evidence of guilt did not satisfy the
identical or confusingly similar with the same goods or
quantum of proof required for a criminal conviction, which
services.
is proof beyond reasonable doubt. According to Section 2,
In this case, Sehwani used the “In-‐n-‐out” brand for
Rule 133 of the Rules of Court, proof beyond a reasonable
his burgers. Is this brand internationally well-‐known? No.
doubt does not mean such a degree of proof as, excluding
But they have to establish it. Of course, the Paris
possibility of error, produces absolute certainty. Moral
Convention was also cited.
certainty only is required, or that degree of proof which
What is the ground of cancellation here? Section
produces conviction in an unprejudiced mind.
151 which we already know does not have a five-‐year
Consequently, Diaz should be acquitted of the charges.
prescriptive period. If 123 is used, there is a five year
prescriptive period. If 155 is used, then no prescriptive
KABUSHIKI KAISHA ISETAN vs. IAC: Take note that this is
period; cancellation could be filed at any time.
under the old law. According to the SC, what is involved in
Note: Medyo magulo ang case so better read it nalang 
this case is not so much a trademark as a tradename.
(G.R. No. 179127)
The young leaves is a mark but Isetann
Department Store is a tradename and it is not associated
LEVI STRAUSS vs. VOGUE: This case involves infringement.
with any kind of goods. Hence, Isetann Department Store
Do you think the cancellation case (of the mark) would
cannot be considered a trademark.
have prospered and what’s your legal basis? Before you go
Isetann Department Store, Inc. is the name of a
to Section 155 ground, you have to look at Section 123
store and not of product sold in various parts of the
because this is the most common source. You have to
country. This case must be differentiated from cases
differentiate Section 123 D, E and F.
involving products bearing such familiar names as
Levi’s is internationally well-‐known and registered
"colgate", "Singer". "Toyota", or "Sony" where the
in the Philippines – Levi Strauss Philippines. Actually,
products are marketed widely in the Philippines. There is
Section 123 E can also be applied, whether registered or
not product with the name "Isetann" popularized with that
not, for identical or similar goods. In relation to procedure,
brand name in the Philippines. Unless one goes to the store
can a cancellation case go together with infringement case?
called Isetann in Manila, he would never know what the
In the previous cases we discussed, one filed for the
name means. Similarly, until a Filipino buyer steps inside a
cancellation while the other filed for infringement.
store called "Isetan" in Tokyo or Hongkong, that name
Here, it was Levi’s who filed the cancellation case
would be completely alien to him. The records show that
and the infringement case. What was the infringement
among Filipinos, the name cannot claim to be
case? Was it initiated by Levi’s? No. Vogue filed an action for
internationally well-‐known.
damages because of the confiscated and seized items from
their warehouse from Levi’s. Levi’s here filed a counter-‐ Before, you can register a tradename with the IPO
claim for infringement. Is that allowed? The SC said yes. but now, under the new IPC, you only register trademarks.
algene c.
254
If you want to register the leaves design, then that is

the
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255
mark. But the tradename, it must be registered with the

Applying either the dominancy test or the holistic
pertinent office.
test, petitioner’s "SAN FRANCISCO COFFEE" trademark is a
The SC said the Paris Convention for the Protection
clear infringement of respondent’s "SAN FRANCISCO
of Industrial Property does not automatically exclude all
COFFEE & ROASTERY, INC." trade name. The descriptive
countries of the world which have signed it from using a
words "SAN FRANCISCO COFFEE" are precisely the
tradename which happens to be used in one country. If
dominant features of respondent’s trade name. Petitioner
there is already a tradename in another country, there is
and respondent are engaged in the same business of selling
nothing from the Paris Convention which says that you can
coffee, whether wholesale or retail. The likelihood of
no longer use the same tradename in your country.
confusion is higher in cases where the business of one
To illustrate -‐ If a taxicab or bus company in a town
corporation is the same or substantially the same as that of
in the United Kingdom or India happens to use the
another corporation.
tradename "Rapid Transportation", it does not necessarily
In this case, the consuming public will likely be
follow that "Rapid" can no longer be registered in Uganda,
confused as to the source of the coffee being sold at
Fiji, or the Philippines.
petitioner’s coffee shops. Petitioner’s argument that "San
Should the mark be cancelled? The Supreme Court
Francisco" is just a proper name referring to the famous
said no because it does not fall under the provisions. It is
city in California and that "coffee" is simply a generic term,
not connected to any kind of goods.
is untenable. Respondent has acquired an exclusive right to
Kabushiki Kaisha has a point pero the law provides
the use of the trade name "SAN FRANCISCO COFFEE &
na dili pwede i-‐cancel. Isetann Department Store does not
ROASTERY, INC." since the registration of the business
sell similar goods. Pero does it mean na wala nagcopya si
name with the DTI in 1995.
Isetann? Of course, nag-‐kopya just like in the case of
Thus, respondent’s use of its trade name from then
Shrangri-‐la.
on must be free from any infringement by similarity. Of
course, this does not mean that respondent has exclusive
COFFEE PARTNERS vs. SAN FRANCISCO COFFEE: Don’t
use of the geographic word "San Francisco" or the generic
forget Section 165 on tradenames. Section 165.2 says (a)
word "coffee." Geographic or generic words are not, per
Notwithstanding any laws or regulations providing for any
se, subject to exclusive appropriation. It is only the
obligation to register trade names, such names shall be
combination of the words "SAN FRANCISCO COFFEE,"
protected, even prior to or without registration, against any
which is respondent’s trade name in its coffee business,
unlawful act committed by third parties.
that is protected against infringement on matters related
The tradename here does not have to be
to the coffee business to avoid confusing or deceiving the
registered with the IPO. If it is a corporation, register with
public.
the SEC. Even before registration, this provision is saying
that tradenames are protected against any unlawful acts.
DISTILLERIA WASHINGTON vs. LA TONDENA: If you look at
Section 165.3 says that the remedies provided for
the different acts of unfair competition, the first one is
in Sections 153 to 156 (including infringement) and Sections
“Any person, who is selling his goods and gives them the
166 and 167 shall apply mutatis mutandis. It shall apply to
general appearance of goods of another manufacturer or
tradenames.
dealer, either as to the goods themselves or in the
Here, San Francisco Coffee & Roastery Inc. has
wrapping of the packages in which they are contained, or
already registered with the SEC as a tradename. By putting
the devices or words thereon, or in any other feature of
up coffee shops with the name of San Francisco Coffee,
their appearance, which would be likely to influence
even being used by Coffee Partners, Inc., that is already
purchasers to believe that the goods offered are those of a
infringement upon the name of San Francisco Cofee &
manufacturer or dealer, other than the actual manufacturer
Roastery Inc. kahit na not registered with the IPO and only
or dealer, or who otherwise clothes the goods with such
with the SEC.
appearance as shall deceive the public and defraud another
Regarding the two generic terms, they are not
of his legitimate trade, or any subsequent vendor of such
capable of registration – “San Francisco” being descriptive
goods or any agent of any vendor engaged in selling such
and “coffee” being generic. But if you combine those two,
goods with a like purpose.”
that’s fine because it is already a combination of two terms.
So in using the bottles of La Tondena with the
But the thing is, hindi naman registered sa IPO diba so
embossed Ginebra San Miguel there, is Washington
walang issue. “What cannot be registered” provision is only
Distillery pretending that its products are those of La
applicable if the registration is made with the Bureau of
Tondena? The SC said no. Washington does not have a
Trademarks.
capacity to manufacture its bottles so it just buys bottles to
algene c.
256
fill up its products. Since the largest quantity of bottles

for
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257
gin is that of Ginebra San Miguel, then that is the most

that are not transferred (ownership) but those whose
practical to buy and use. It’s just the use of the bottles but
ownership is retained by the manufacturers.
they did not make the bottles look like that they are
There are exceptions to the rule. You can use coke
Ginebra San Miguel products.
bottles or pepsi bottles for sili, bagoong and all those
But relate it to RA 623 (An act to regulate the use
cottage industry products – those that small households
of duly stamped or marked bottles, boxes, casks, kegs,
manufacture. But it does not include gasolina ha.
barrels and other similar containers). It was already
established that there was no infringement, now, was there
October 13, 2014
a theft of the bottles? No because of the transfer of
ownership.
Section 2 of RA 623 provides that:
It shall be unlawful for any person, without the
Let’s compare the case of Distilleria Washington with the
written consent of the manufacturer, bottler or
case of…
seller who has successfully registered the marks of
ownership in accordance with the provisions of the
COCA-‐COLA vs. QUINTIN GOMEZ: Actually, Coca-‐cola could
next preceding section, to fill such bottles, boxes,
have filed another action which is theft or Ant-‐Fencing
kegs, barrels, or other similar containers so marked
(possession of stolen goods) but it focused on unfair
or stamped, for the purpose of sale, or to sell,
competition. Having those bottles on the warehouse does
dispose of, buy, or traffic in, or wantonly destroy
not fall under any of the conditions in Section 168.
the same, whether filled or not, or to use the same
for drinking vessels or glasses or for any other
As basis for this interpretative analysis, we note
purpose than that registered by the manufacturer,
that Section 168.1 speaks of a person who has earned
bottler or seller. Any violation of this section shall
goodwill with respect to his goods and services and who is
be punished by a fine or not more than one
entitled to protection under the Code, with or without a
hundred pesos or imprisonment of not more than
registered mark. Section 168.2, as previously discussed,
thirty days or both.
refers to the general definition of unfair competition.
It says here that: The use by any person other than
Section 168.3, on the other hand, refers to the specific
the registered manufacturer, bottler or seller without the
instances of unfair competition, with Section 168.1 referring
written permission of the latter of any such bottle, etc. shall
to the sale of goods given the appearance of the goods of
give rise to a prima facie presumption that such use or
another; Section 168.2, to the inducement of belief that his
possession is unlawful, does not arise in the instant case
or her goods or services are that of another who has
because the Court has itself found Section 5 of the same
earned goodwill; while the disputed Section 168.3 being a
law applicable.
"catch all" clause whose coverage the parties now dispute.
According to Sections 2 and 3 of RA 623, if you
Under all the above approaches, we conclude that
have a registered trademark which includes the container
the "hoarding" -‐ as defined and charged by the petitioner -‐
or the bottle, nobody can use it for anything; even for
does not fall within the coverage of the IP Code and of
drinking. But Section 5 thereof says: Despite Sections 2 and
Section 168 in particular. It does not relate to any patent,
3, no action shall be brought under this Act against any
trademark, trade name or service mark that the
person to whom the registered manufacturer, bottler, or
respondents have invaded, intruded into or used without
seller, has transferred by way of sale, any of the containers
proper authority from the petitioner. Nor are the
herein referred to, but the sale of the beverage contained
respondents alleged to be fraudulently "passing off" their
in the said containers shall not include the sale of the
products or services as those of the petitioner. The
containers unless specifically so provided.
respondents are not also alleged to be undertaking any
This only refers to coke or beer bottles which are
representation or misrepresentation that would confuse or
not sold together with the beverage. They have to be
tend to confuse the goods of the petitioner with those of
returned. Pero itong mga rhum bottles, they are
the respondents, or vice versa. What in fact the petitioner
transferred together with the beverage. Therefore, alangan
alleges is an act foreign to the Code, to the concepts it
naman you can prohibit the end user… Alam niyo naman na
embodies and to the acts it regulates; as alleged, hoarding
one of the rights of an owner is to enjoy so the end user
inflicts unfairness by seeking to limit the opposition's sales
can use it for drinking, etc. The end user can dispose it or
by depriving it of the bottles it can use for these sales.
sell it to Distilleria Washington.
As an owner, Distilleria Washington can perform
the rights of an owner as well. RA 623 applies to bottles
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258
EMERALD GARMENTS vs CA: According to the SC, holistic

 which shall consist of the exclusive right to carry
test reveals that they are not confusingly similar. Is Lee an
out, authorize or prevent the acts listed in Sec. 177
internationally well-‐known brand?
Copyrights and economic rights are synonymous. If we
For lack of adequate proof of actual use of its
have an author and he writes a novel, his novel is his
trademark in the Philippines prior to petitioner's use of its
creation. Therefore, that belongs to him. That is his
own mark and for failure to establish confusing similarity
property automatically but how do you differentiate it from
between said trademarks, private respondent's action for
copyright? It is not the work itself but it is the right to copy.
infringement must necessarily fail.
Who has the right? What he can do with his work? The
I think we already covered cases on trademark, tradename
author or the creator.
and infringement. Just make sure that you know the
difference between a trademark and a tradename.
The rights of the creator are listed in Section 177.
CONVERSE RUBBER vs. UNIVERSAL: The word “Converse” Section 177. Copyright or Economic Rights. -‐ Subject to the
is also entitled to a protection whether it is a trademark or provisions of Chapter VIII, copyright or economic rights
a tradename. When you have a registered mark, it is not shall consist of the exclusive right to carry out, authorize
only the mark that is protected but also your packaging, or prevent the following acts:
design, etc.
From the FT of the case: 177.1. Reproduction of the work or substantial portion of
The similarity in the general appearance of the work;
respondent's trademark and that of petitioner would
evidently create a likelihood of confusion among the 177.2. Dramatization, translation, adaptation, abridgment,
purchasing public. But even assuming, arguendo, that the arrangement or other transformation of the work;
trademark sought to be registered by respondent is
distinctively dissimilar from those of the petitioner, the 177.3. The first public distribution of the original and each
likelihood of confusion would still subsists, not on the copy of the work by sale or other forms of transfer of
purchaser's perception of the goods but on the origins ownership;
thereof.
By appropriating the word "CONVERSE," 177.4. Rental of the original or a copy of an audiovisual or
respondent's products are likely to be mistaken as having cinematographic work, a work embodied in a sound
been produced by petitioner. "The risk of damage is not recording, a computer program, a compilation of data and
limited to a possible confusion of goods but also includes other materials or a musical work in graphic form,
confusion of reputation if the public could reasonably irrespective of the ownership of the original or the copy
assume that the goods of the parties originated from the which is the subject of the rental; (n)
same source.
177.5. Public display of the original or a copy of the work;
COPYRIGHT
177.6. Public performance of the work; and
Let’s go to the third kind of intellectual property –
copyright. Again, patents refer to inventions, products. 177.7. Other communication to the public of the work.
Trademarks refer to signs, logos, brands, etc. Tradename is (Sec. 5, P. D. No. 49a)
the name that identifies the corporation or the entity.
What are the rights?

What is a copyright?
1. Reproduction of the work or substantial portion of
An intangible incorporeal right:
the work
 to certain literary, scholarly and artistic
If he wants to reproduce his novel, then
productions
that is his right. He can also authorize someone to
 granted by statute to the author or creator of the
reproduce it.
work
2. Dramatization, translation, adaptation,
 giving him, his heirs and assigns, copyright or abridgment, arrangement or other transformation
economic rights
of the work
algene c.
259
3. The first public distribution of the original and each

(k) Photographic works including works produced
copy of the work by sale or other forms of transfer
by a process analogous to photography; lantern slides;
of ownership
(l) Audiovisual works and cinematographic works
4. Rental of the original or a copy of an audiovisual or
and works produced by a process analogous to
cinematographic work, a work embodied in a
cinematography or any process for making audio-‐visual
sound recording, a computer program, a
recordings;
compilation of data and other materials or a
(m) Pictorial illustrations and advertisements;
musical work in graphic form, irrespective of the
(n) Computer programs; and
ownership of the original or the copy which is the
(o) Other literary, scholarly, scientific and artistic
subject of the rental
works.
5. Public display of the original or a copy of the work
If he is a painter, then he has the one who
Just take note of the enumerations. Computer programs
has the right to exhibit.
cannot be patented but they can be copyrighted.
6. Public performance of the work
If X is a composer, he can choose the
Section 172.2. Works are protected by the sole fact of their
person who can publicly perform his song.
creation, irrespective of their mode or form of expression,
7. Other communication to the public of the work.
as well as of their content, quality and purpose. (Sec. 2,
P.D. No. 49a)
Again, you have to be able to distinguish between the work
itself and the copyright. The copyright consists of all the
In other words, unlike trademarks and patents, there is no
rights under Section 177.
need to register one’s work to be entitled to the copyright.
Automatically, the creator has copyright over his work.
What are the works protected by copyright?
Literary and Artistic Works which are original intellectual
Section 173. Derivative Works. -‐ 173.1. The following
creations in the literary and artistic domain protected from
derivative works shall also be protected by copyright:
the moment of their creation.
(a) Dramatizations, translations, adaptations,
abridgments, arrangements, and other alterations of
Section 172. Literary and Artistic Works. -‐ 172.1. Literary and
literary or artistic works; and
artistic works, hereinafter referred to as "works", are
(b) Collections of literary, scholarly or artistic
original intellectual creations in the literary and artistic
works, and compilations of data and other materials which
domain protected from the moment of their creation and
are original by reason of the selection or coordination or
shall include in particular:
arrangement of their contents. (Sec. 2, [P] and [Q], P.D.
(a) Books, pamphlets, articles and other writings;
No. 49)
(b) Periodicals and newspapers;
(c) Lectures, sermons, addresses, dissertations Section 172 talks about original works. Derivative works are
prepared for oral delivery, whether or not reduced in also protected by copyright.
writing or other material form; 1. Dramatizations, translations, adaptations,
(d) Letters; abridgments, arrangements, and other alterations
(e) Dramatic or dramatico-‐musical compositions; of literary or artistic works
choreographic works or entertainment in dumb shows; Like the novel we talked earlier written by
(f) Musical compositions, with or without words; X and he authorized Y to dramatize his novel and
(g) Works of drawing, painting, architecture, to write a script. That script is protected by
sculpture, engraving, lithography or other works of art; copyright as a derivative work. To whom does the
models or designs for works of art; copyright belong? To the script writer.
(h) Original ornamental designs or models for 2. Collections of literary, scholarly or artistic works,
articles of manufacture, whether or not registrable as an and compilations of data and other materials
industrial design, and other works of applied art; which are original by reason of the selection or
(i) Illustrations, maps, plans, sketches, charts and coordination or arrangement of their contents
three-‐dimensional works relative to geography, I always cite as an example the book of
topography, architecture or science; our handsome SCA – the Supreme Court
(j) Drawings or plastic works of a scientific or Administrator Jose Midas P. Marquez. He owns the
technical character; copyright of those derivative works by reason of
algene c.
260
his coordination or arrangement. The decisions of

even if they are expressed, explained, illustrated or
the justices, si Midas ang nag-‐cocompile. Later, you
embodied in a work
will learn that the decisions of the SC are not
According to the case of Joaquin vs.
copyrightable but if you compile them, may
Drilon, the format of a show is not
copyright na.
copyrightable but the show itself (all tv
shows) is copyrightable.
How are derivative copyright protected?
Example: Big Brother
For the Philippines, we have PBB.
Section 173.2. The works referred to in paragraphs (a) and
PBB has to pay to the original Big Brother.
(b) of Subsection 173.1 shall be protected as new works:
So we are saying that the concept itself is
Provided however, That such new work shall not affect
not copyrightable but the creation or the
the force of any subsisting copyright upon the original
show is subject to copyright protection
works employed or any part thereof, or be construed to
 news of the day and other miscellaneous facts
imply any right to such use of the original works, or to
having the character of mere items of press
secure or extend copyright in such original works. (Sec. 8,
information
P.D. 49; Art. 10, TRIPS)
If ABS-‐CBN presents this breaking news
that X killed Y, does it mean that GMA
They shall be protected as new works, BUT such new work
cannot do it anymore? No.
shall not:
 any official text of a legislative, administrative or
 affect the force of any subsisting copyright upon
legal nature, as well as any official translation
the original works employed or any part thereof
thereof
In our example earlier, author X has a
The laws enacted by Congress are not
copyright over his work. If he authorizes Y
copyrightable. You can copy it and you can
to dramatize it, then Y has a copyright
distribute.
over the script but it does not affect the
copyright of X over the novel.
Are works of the government protected by copyright? No.
 be construed to imply any right to such use of the
original works, or to secure or extend copyright in Section 176. Works of the Government. -‐ 176.1. No copyright
such original works shall subsist in any work of the Government of the
Let’s say Y dramatized the work of X so he Philippines. However, prior approval of the government
has the copyright over it na, does it mean agency or office wherein the work is created shall be
that he was abe to acquire protection of X necessary for exploitation of such work for profit. Such
over the copyright? No. Does he have the agency or office may, among other things, impose as a
right to extend that copyright of the condition the payment of royalties. No prior approval or
original work? No. conditions shall be required for the use of any purpose of
statutes, rules and regulations, and speeches, lectures,
What are not protected by copyright? sermons, addresses, and dissertations, pronounced, read
or rendered in courts of justice, before administrative
Section 175. Unprotected Subject Matter. -‐ agencies, in deliberative assemblies and in meetings of
Notwithstanding the provisions of Sections 172 and 173, no public character. (Sec. 9, first par., P.D. No. 49)
protection shall extend, under this law, to any idea,
procedure, system, method or operation, concept, “No copyright shall subsist in any work of the Government
principle, discovery or mere data as such, even if they are of the Philippines.”
expressed, explained, illustrated or embodied in a work; So the speech of the Speaker of the Malacanang is not
news of the day and other miscellaneous facts having the protected by copyright. But if you want to use the work of
character of mere items of press information; or any the government for profit, you have to ask for approval.
official text of a legislative, administrative or legal nature,
as well as any official translation thereof (n) There are works that do not need prior approval like:
 the use of any purpose of statutes, rules and
No protection shall extend, under this law, to: regulations
 any idea, procedure, system, method or operation,  speeches, lectures, sermons, addresse
concept, principle, discovery or mere data as such,
algene c.
261
 dissertations, pronounced, read or rendered in

the author of each part shall be the original owner of the
courts of justice, before administrative agencies, in
copyright in the part that he has created;
deliberative assemblies and in meetings of public
character
There are a lot of books that are jointly authored.
What is the right of the author who makes speeches all
Illustration if there are Books 1 and 2: If X is the author of
over the place?
Book 1, then he is the copyright owner. If Y is the owner of
Book 2, the same.
Section 176.2. The author of speeches, lectures, sermons,
addresses, and dissertations mentioned in the preceding Section 178.3. In the case of work created by an author
paragraphs shall have the exclusive right of making a during and in the course of his employment, the copyright
collection of his works. (n) shall belong to:
(a) The employee, if the creation of the object of
The work itself, the speech itself, cannot be protected by copyright is not a part of his regular duties even if the
copyright but the collection, the derivative work, can be. employee uses the time, facilities and materials of the
employer.
Section 176.3. Notwithstanding the foregoing provisions, (b) The employer, if the work is the result of the
the Government is not precluded from receiving and performance of his regularly-‐assigned duties, unless there
holding copyrights transferred to it by assignment, is an agreement, express or implied, to the contrary.
bequest or otherwise; nor shall publication or
republication by the Government in a public document of This is the same with patents.
any work in which copyright is subsisting be taken to
cause any abridgment or annulment of the copyright or to Section 178.4. In the case of a work commissioned by a
authorize any use or appropriation of such work without person other than an employer of the author and who
the consent of the copyright owner. (Sec. 9, third par., P.D. pays for it and the work is made in pursuance of the
No. 49) commission, the person who so commissioned the work
shall have ownership of the work, but the copyright
The government may publish copyrighted work. Who has thereto shall remain with the creator, unless there is a
the right to publish again? The creator. Just because the written stipulation to the contrary.
government is allowed to publish the work doesn’t mean
na kahit sino na ang pwede mag-‐publish. Again, ang So work commissioned. Example: X asks Y to write a love
government lang and the creator. song. Here, Y wrote the song, composed the music, who
owns the copyright? Of course, the owner of the song is X
Let’s go to the rules on copyright ownership. Who owns who asked Y to write it for him. The copyright thereto shall
the copyright? remain to the composer or to the creator.
Section 178. Rules on Copyright Ownership. -‐ Copyright Section 178.5. In the case of audiovisual work, the
ownership shall be governed by the following rules: copyright shall belong to the producer, the author of the
scenario, the composer of the music, the film director, and
178.1 Subject to the provisions of this section, in the the author of the work so adapted. However, subject to
case of original literary and artistic works, copyright shall contrary or other stipulations among the creators, the
belong to the author of the work; producer shall exercise the copyright to an extent
required for the exhibition of the work in any manner,
So automatically – he owns the work then he owns the except for the right to collect performing license fees for
copyright. the performance of musical compositions, with or without
words, which are incorporated into the work; and
Section 178.2. In the case of works of joint authorship, the
co-‐authors shall be the original owners of the copyright 178.6. In respect of letters, the copyright shall belong to
and in the absence of agreement, their rights shall be the writer subject to the provisions of Article 723 of the
governed by the rules on co-‐ownership. If, however, a Civil Code. (Sec. 6, P.D. No. 49a)
work of joint authorship consists of parts that can be used
separately and the author of each part can be identified,
algene c.
262
The copyright must be distinguished from the material 180.3. The submission of a literary, photographic or artistic
object. Does the transfer or assignment of copyright work to a newspaper, magazine or periodical for
automatically constitute a transfer of the material object? publication shall constitute only a license to make a single
No. You can only transfer the copyright. publication unless a greater right is expressly granted. If
two (2) or more persons jointly own a copyright or any
Let’s say I’m an author of a certain novel. Here is the novel part thereof, neither of the owners shall be entitled to
with the original manuscript. I own this and its copyright. grant licenses without the prior written consent of the
Can I transfer the original manuscript? Yes, sure and I still other owner or co-‐owners. (Sec. 15, P.D. No. 49a)
have the copyright. What if I don’t want to transfer the
manuscript but I want to transfer the copyright, well 180.4. Any exclusivity in the economic rights in a work may
pwede rin. Can I do both? Yes. Sure. So we have two be exclusively licensed. Within the scope of the exclusive
different properties here. license, the licensee is entitled to all the rights and
remedies which the licensor had with respect to the
Section 179. Anonymous and Pseudonymous Works. -‐ For copyright.
purposes of this Act, the publishers shall be deemed to
represent the authors of articles and other writings 180.5. The copyright owner has the right to regular
published without the names of the authors or under statements of accounts from the assignee or the licensee
pseudonyms, unless the contrary appears, or the with regard to assigned or licensed work.
pseudonyms or adopted name leaves no doubt as to the
author's identity, or if the author of the anonymous works Note: As amended by RA 10372
discloses his identity. (Sec. 7, P.D. 49)
This particular section of IPC has been amended by RA
There are some people who do not want to be identified so 10372 so the word “licensed” has been added. Before kasi,
they write anonymously. “assigned” lang yan.
General rule: The publishers shall be deemed to represent What is the assignee or licensee of a copyright entitled to?
the authors of articles and other writings published without Within the scope of the assignment or license, the assignee
the names of the authors or under pseudonyms or licensee is entitled to all the rights and remedies which
So if the author uses a pseudonym or writes the assignor or licensor had with respect to the copyright.
anonymously, then he or she shall be represented by the
publisher. What is the form?
The copyright is not deemed assigned inter vivos in whole
Exceptions: or in part unless there is a written indication of such
 the contrary appears intention.
 the pseudonyms or adopted name leaves no doubt
as to the author's identity So it must in writing. You cannot just say na “Oh, sayo na
 if the author of the anonymous works discloses his yung copy right.” That is not enough.
identity
What if the copyright owner submits his work to a
May a copyright be assigned or licensed? Yes. newspaper, magazine or periodical for publication? What
is the right of the publisher?
Section 180. Rights of Assignee. -‐ 180.1. Rights of Assignee It shall constitute only a license to make a single publication
or Licensee. – 180.1. the copyright may be assigned or unless a greater right is expressly granted.
licensed in whole or in part. Within the scope of the
assignment or license, the assignee or licensee is entitled Who can grant a license if two or more persons own the
to all the rights and remedies which the assignor or copyright or a part thereof?
licensor had with respect to the copyright. That is an act of alteration so neither of the owners shall be
entitled to grant licenses without the prior written consent
180.2. The copyright is not deemed assigned inter vivos in of the other owner or co-‐owners.
whole or in part unless there is a written indication of such
intention. Section 182. Filing of Assignment or License. -‐ An
assignment or exclusive license may be filed in duplicate
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with the National Library upon payment of the prescribed the mural in a postcard, then okay kasi he has the
fee for registration in books and records kept for the right.
purpose. Upon recording, a copy of the instrument shall be
returned to the sender with a notation of the fact of October 14, 2014
record. Notice of the record shall be published in the IPO
Gazette. (Sec. 19, P.D. No. 49a) We already looked at the rights of the owner of the
copyright. What if the acts under Section 184 are
If you are the licensee, you can inform the National Library performed by someone who is not authorized to do so?
that you have a license and you must pay the prescribed
fee. Section 184. Limitations on Copyright. -‐ 184.1.
Notwithstanding the provisions of Chapter V, the
Section 183. Designation of Society. -‐ The copyright owners or following acts shall not constitute infringement of
their heirs may designate a society of artists, writers or copyright:
composers to enforce their economic rights and moral
rights on their behalf. (Sec. 32, P.D. No. 49a) (a) The recitation or performance of a work, once
it has been lawfully made accessible to the public, if done
The next provision, Section 184, this is the very tedious one. privately and free of charge or if made strictly for a
charitable or religious institution or society; (Sec. 10(1),
Bar Exam Question: The widow of a former president P.D. No. 49)
commissioned Matalino to write a biography of her late
husband for a fee. Upon the completion of the work, she This is what I keep on insisting because we present
paid Matalino the agreed price. The biography is protected musicals. We did “Mamma Mia” and the other members of
by copyright. The widow, after reading it, changed her mind the group are asking “Aren’t we supposed to buy a
and decide not to publish it. copyright from the producers?” because they actually sell.
 Can the widow sell the property (the book or the However, the songs of “Sound of Music” and “Mamma
original manuscript) without the consent of Mia” had already been made available to the public. At the
Matalino? same time, we also do it for charitable institutions. And so,
Yes, because she owns the book. She it falls under this exception. Even if we perform songs that
commissioned someone to do the work so she are copyrighted, under our laws, it will not constitute
owns it. Matalino, by entering into a contract with infringement.
the widow of the President and having received a
fee, he has parted all of his rights to said book in (b) The making of quotations from a published work if
effect making the widow the owner of the book. they are compatible with fair use and only to the extent
Therefore, one of her rights is to dispose of her justified for the purpose, including quotations from
property. newspaper articles and periodicals in the form of press
 Can the widow transfer the copyright of the book summaries: Provided, That the source and the name of the
without the consent of Matalino? author, if appearing on the work, are mentioned; (Sec. 11,
No. Even if she owns the book itself, the third par., P.D. No. 49)
copyright belongs to the author. That is under
Section 178.4, unless there is a stipulation to the
Let us say we have a book from Dan Brown and you like this
contrary.
particular phrase, then you copy it and write about it. Is it
considered as an infringement? No, provided that the
Bar Exam Question: Solid Investment House commissioned
source and the name of the author are mentioned.
Mon Blanco and his son Steve, both noted artists, to paint a
mural for the main lobby of the new building of SIH.
Kaya nga diba, remember the speech of Manny Pangilinan
 Who owns the mural? in Ateneo ba yun. He included a part of the speech of
Solid Investment House because it is the someone but he did not mention the name of the person
one which commissioned the artists. who wrote it. So naging issue din yun. Also yung justice of
 Who owns the copyright of the mural? the Supreme Court who writes a decision includes a
According to the law, it is the painter paragraph from somewhere but did not include the name
itself. He has the right to reproduce the painting of of the person who wrote it.
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(c) The reproduction or communication to the public by Yung mga performance during town fiesta, there is no
mass media of articles on current political, social, infringement there.
economic, scientific or religious topic, lectures, addresses
and other works of the same nature, which are delivered (j) Public display of the original or a copy of the work not
in public if such use is for information purposes and has made by means of a film, slide, television image or
not been expressly reserved: Provided, That the source is otherwise on screen or by means of any other device or
clearly indicated; (Sec. 11, P.D. No. 49) process: Provided, That either the work has been
published, or, that the original or the copy displayed has
(d) The reproduction and communication to the public of been sold, given away or otherwise transferred to another
literary, scientific or artistic works as part of reports of person by the author or his successor in title; and
current events by means of photography, cinematography
or broadcasting to the extent necessary for the purpose; (k) Any use made of a work for the purpose of any judicial
(Sec. 12, P.D. No. 49) proceedings or for the giving of professional advice by a
legal practitioner.
(e) The inclusion of a work in a publication, broadcast, or
other communication to the public, sound recording or There is one more act which was added in RA 10372.
film, if such inclusion is made by way of illustration for
teaching purposes and is compatible with fair use: (1) The reproduction or distribution of published articles or
Provided, That the source and of the name of the author, if materials in a specialized format exclusively for the use of
appearing in the work, are mentioned; the blind, visually-‐ and reading-‐impaired persons:
Provided, That such copies and distribution shall be made
Lecturers may show a clip from a particular movie. That is on a nonprofit basis and shall indicate the copyright owner
under Section 184. and the date of the original publication
(f) The recording made in schools, universities, or So if you produce a copyrighted book in a specialized
educational institutions of a work included in a broadcast format for the blind and visually impaired persons, then
for the use of such schools, universities or educational that is not considered as infringement. Provided, That such
institutions: Provided, That such recording must be copies and distribution shall be made on a nonprofit basis
deleted within a reasonable period after they were first and shall indicate the copyright owner and the date of the
broadcast: Provided, further, That such recording may not original publication.
be made from audiovisual works which are part of the
general cinema repertoire of feature films except for brief Section 185. Fair Use of a Copyrighted Work. -‐ 185.1. The fair
excerpts of the work; use of a copyrighted work for criticism, comment, news
reporting, teaching including multiple copies for classroom
(g) The making of ephemeral recordings by a broadcasting use, scholarship, research, and similar purposes is not an
organization by means of its own facilities and for use in infringement of copyright. Decompilation, which is
its own broadcast; understood here to be the reproduction of the code and
translation of the forms of the computer program to
(h) The use made of a work by or under the direction or achieve the inter-‐operability of an independently created
control of the Government, by the National Library or by computer program with other programs may also
educational, scientific or professional institutions where constitute fair use. In determining whether the use made
such use is in the public interest and is compatible with fair of a work in any particular case is fair use, the factors to be
use; considered shall include:
(a) The purpose and character of the use,
(i) The public performance or the communication to the including whether such use is of a commercial nature or is
public of a work, in a place where no admission fee is for non-‐profit educational purposes;
charged in respect of such public performance or (b) The nature of the copyrighted work;
communication, by a club or institution for charitable or (c) The amount and substantiality of the portion
educational purpose only, whose aim is not profit making, used in relation to the copyrighted work as a whole; and
subject to such other limitations as may be provided in the (d) The effect of the use upon the potential
Regulations; (n) market for or value of the copyrighted work.
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185.2. The fact that a work is unpublished shall not by Registration and deposit:
itself bar a finding of fair use if such finding is made upon 1. Registration of the works with the National Library
consideration of all the above factors. and Supreme Court Library
2. Deposit of two [2] complete copies or
What do you mean by fair use? reproductions of the work with the National
The fair use of a copyrighted work for criticism, comment, Library and Supreme Court Library
news reporting, teaching including multiple copies for This must be made after the first public dissemination of
classroom use, scholarship, research, and similar purposes performance by authority of the copyright owner of a work
is not an infringement of copyright.
I just want to discuss moral rights. The copyright that we
Example: If you want to make a critic of a copyrighted were talking earlier, as mentioned, is synonymous with
book, then you publish it. That is not an infringement economic rights of the creator. Aside from the economic
compatible with fair use. rights included in copyright are the moral rights.
According to Section 185, in determining whether the work Section 193. Scope of Moral Rights. -‐ The author of a work
in any particular case is fair use, the factors to be What are
shall, the moral rights?
independently of the economic rights in Section 177
considered shall be: 1. grant
or the To require
of an that the authorship
assignment or licenseofwith
the respect
works be
to
1. The purpose and character of the use, including attributed
such right, to him, in particular, the right that his
have the right:
whether such use is of a commercial nature or is name, as far as practicable, be indicated in a
for non-‐profit educational purposes 193.1. Toprominent
require that way the
on the copies, and
authorship in connection
of the works be
2. The nature of the copyrighted work attributedwith
to the
him,public use of histhe
in particular, work
right that his name, as
3. The amount and substantiality of the portion used far as practicable, Hebe should
indicatedalways be identified
in a prominent way on and
the
in relation to the copyrighted work as a whole and recognized.
copies, and in connection with the public use of his work;
4. The effect of the use upon the potential market for 2. To make any alterations of his work prior to, or to
or value of the copyrighted work. 193.2. Towithhold
make any it from publication
alterations of his work prior to, or to
withhold it from publication;moral right not to publicize his
He has the
So there is
Section no Deposit
191. definite rule.
and You cannot
Notice of just say that
Deposit this the
with is a
copyrighted
National with and
Library fair use
the or that it is
Supreme not, Library.
Court you need– to
Atlook
any 193.3. To object to any distortion, mutilation or other
at certain
time during factors too. What of
the subsistence is important
the copyright,is that
thethe use of
owner modification of, or other derogatory action in relation to,
the copyrighted
copyright orbook is compatible
of any exclusive with
rightfair use. work may,
in the his work which would be prejudicial to his honor or
for the purpose of completing the records of the National reputation; and
Section 191
Library andhasthe
already been amended
Supreme by RA 10372
Court Library, but and
register the
essence with
deposit is thethem,
same.byAgain, I would
personal like toor
delivery remind you that
by registered 193.4. To restrain the use of his name with respect to any
there two
mail, is no (2)
need to register
complete for aorscholarly
copies work because
reproductions of the work not of his own creation or in a distorted version of
work in such form as the Directors of the said librariesif may
they are protected from the moment of creation. But you his work. (Sec. 34, P.D. No. 49)
want to register, where do you do it?
prescribe in accordance with regulations: Provided, That
only works in the field of law shall be deposited with the work.
Supreme Court Library. Such registration and deposit is 3. To object to any distortion, mutilation or other
not a condition of copyright protection. modification of, or other derogatory action in
Note: As amended by RA 10372 relation to, his work which would be prejudicial to
his honor or reputation
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4. To restrain the use of his name with respect to any

work not of his own creation or in a distorted
“The rights of an author under this chapter shall last during
version of his work
the lifetime of the author and in perpetuity after his death.”
Just like unfair competiton, like using
So the works of William Shakespeare will always contain his
somebody else’s work.
name just like the works of Jose Rizal.
Section 194. Breach of Contract. -‐ An author cannot be
“While the rights under Sections 193.2. 193.3. and 193.4.
compelled to perform his contract to create a work or for
shall be coterminous with the economic rights, the moral
the publication of his work already in existence. However,
rights shall not be assignable or subject to license.”
he may be held liable for damages for breach of such
Economic rights may be assigned but not moral rights.
contract. (Sec. 35, P.D. No. 49)
The person or persons to be charged with the posthumous
Let’s say X contracts with a certain author wherein he asks
enforcement of these rights shall be named in a written
Y to write a book about this topic. The deadline is 2016 and
instrument which shall be filed with the National Library.
they have a contract. Come 2016, there is no book. Can Y be
compelled to write? No. However, he may be held liable for
In default of such person or persons, such enforcement
damages for breach of such contract.
shall devolve upon:
 the author’s heirs and
So there is no such thing as an action for specific
 in default of the heirs the Director of the National
performance when one enters a contract for sculptures,
Library.
paintings, etc.
Can an author waive his moral rights? Yes. Section 199. Enforcement Remedies. -‐ Violation of any of
the rights conferred by this Chapter shall entitle those
charged with their enforcement to the same rights and
Section 195. Waiver of Moral Rights. -‐ An author may waive
remedies available to a copyright owner. In addition,
his rights mentioned in Section 193 by a written
damages which may be availed of under the Civil Code may
instrument, but no such waiver shall be valid where its
also be recovered. Any damage recovered after the
effects is to permit another:
creator's death shall be held in trust for and remitted to
195.1. To use the name of the author, or the title of his his heirs, and in default of the heirs, shall belong to the
work, or otherwise to make use of his reputation with government. (Sec. 40, P D No. 49)
respect to any version or adaptation of his work which, We will not take up the other provisions. They were not
because of alterations therein, would substantially tend to taken up, they were not assigned, not in the coverage and
injure the literary or artistic reputation of another author; not talked about but please read them at at least once in
or your life 
 Right to proceed in subsequent transfer
195.2. To use the name of the author with respect to a  Rights of performers, producers of sounds
work he did not create. (Sec. 36, P.D. No. 49) recordings and broadcasting organizations
o This may not be popular but there are
Section 198. Term of Moral Rights. – 198.1. The right of an already many cases on this so read
author under Section 193.1. shall last during the lifetime of
the author and in perpetuity after his death while the Section 213. Term of Protection. -‐ 213.1. Subject to the
rights under Sections 193.2. 193.3. and 193.4. shall be provisions of Subsections 213.2 to 213.5, the copyright in
coterminous with the economic rights, the moral rights works under Sections 172 and 173 shall be protected during
shall not be assignable or subject to license. The person or the life of the author and for fifty (50) years after his
persons to be charged with the posthumous enforcement death. This rule also applies to posthumous works. (Sec.
of these rights shall be named in a written instrument 21, first sentence, P.D. No. 49a)
which shall be filed with the National Library. In default of
such person or persons, such enforcement shall devolve 213.2. In case of works of joint authorship, the economic
upon either the author’s heirs, and in default of the heirs, rights shall be protected during the life of the last
the Director of the National Library. surviving author and for fifty (50) years after his death.
Note: As amended by RA 10372 (Sec. 21, second sentence, P.D. No. 49)
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When you talk about copyrighted utility, you are talking

213.3. In case of anonymous or pseudonymous works, the about work of arts, literary works, scholarly works –
copyright shall be protected for fifty (50) years from the something that you admire, learn from but it is not useful in
date on which the work was first lawfully published: the sense that it doesn’t make your life easier.
Provided, That where, before the expiration of the said
period, the author's identity is revealed or is no longer in Useful articles are patentable if they have an inventive
doubt, the provisions of Subsections 213.1. and 213.2 shall steps and are novel. We have to separate copyright and
apply, as the case may be: Provided, further, That such patent. But nowadays, there are articles that have aesthetic
works if not published before shall be protected for fifty features but are also useful… so can these articles be
(50) years counted from the making of the work. (Sec. 23, copyrighted? One example I can think about is: Let’s say we
P.D. No. 49) have a painting painted by some local artist. It’s not mass
produced. Instead of framing it, he placed it on something
213.4. In case of works of applied art the protection shall which can be opened where you can place keys inside so
be for a period of twenty-‐five (25) years from the date of it’s useful in the sense that you can hang your keys and it is
making. (Sec. 24(B), P.D. No. 49a) also a painting.
213.5. In case of photographic works, the protection shall A “useful article” is an article having an intrinsic utilitarian
be for fifty (50) years from publication of the work and, if function that is not merely to portray the appearance of
unpublished, fifty (50) years from the making. (Sec. 24(C), the article or to convey information. An article that is
P.D. 49a) normally a part of a useful article is considered a “useful
article”. (17 U.S. Code § 101) They must be separable from
213.6. In case of audio-‐visual works including those the functional aspect to be copyrighted.
produced by process analogous to photography or any
process for making audio-‐visual recordings, the term shall Copyright protects artistic expression. Copyright does not
be fifty (50) years from date of publication and, if protect useful articles, or objects with some useful
unpublished, from the date of making. (Sec. 24(C), P.D. No. functionality. The Copyright Act states:
49a)
A “useful article” is an article having an intrinsic
Duration: utilitarian function that is not merely to portray
 Original and Derivative Works – during the life of the appearance of the article or to convey
the author and for 50 years after his death. information. An article that is normally a part of a
 Works of joint authorship – during the life of the useful article is considered a “useful article”.
last surviving author and for 50 years after his
death. “the design of a useful article, as defined in this
 Anonymous or pseudonymous works – 50 years section, shall be considered a pictorial, graphic, or
from the date on which the work was first lawfully sculptural work only if, and only to the extent
published that, such design incorporates pictorial, graphic,
or sculptural features that can be identified
If you want to look the provision, only works of applied arts separately from, and are capable of existing
have a 25 year time protection. The rest has 50 years. independently of, the utilitarian aspects of the
article.”
So those are the provisions that are important for now. The
Intellectual Property Code is not really taken as a whole. I However, many industrial designers create works that are
just want to discuss this topic… Let’s talk about useful both artistic and functional. Under these circumstances,
articles. Copyright Law only protects the artistic expression of such
a work, and only to the extent that the artistic expression
What is a useful article? can be separated from its utilitarian function (what courts
If a “pictorial, graphic or sculptural work” is a “useful call "conceptual separability"). If the aesthetic aspects
article,” it is protectable or copyrighted only if its aesthetic cannot be separated from the functional aspects,
features are separable from its utilitarian aspects. copyright protection is not available.
It can be difficult to gauge whether the artistic aspects of a
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work can be separated from its useful aspects. Courts cannot find this in any Philippine
often rely on the Denicola test, which asks whether the jurisprudence. I found this in Wikipedia.
artistic design was significantly influenced by functional
considerations. If so, copyrightability depends on the What is Denicola Test?
extent to which the work reflects the artistic expression Copyrightability should ultimately
inhibited by functional considerations. As discussed by depend on the extent to which the work
Judge Oakes: reflects the artistic expression uninhibited
by functional considerations.. If something
Copyrightability "ultimately should depend on the came to have a pleasing shape because of
extent to which the work reflects artistic its function xxx, the artistic aspect was
expression uninhibited by functional constrained by those concerned.
considerations." To state the Denicola test in the
language of conceptual separability, if design In other words, what makes it attractive
elements reflect a merger of aesthetic and or pleasing? Is it because it is pleasing as it
functional considerations, the artistic aspects of a is or it is useful? If it is pleasing as it is, then
work cannot be said to be conceptually separable it may be copyrighted. If it is pleasing
from the utilitarian elements. Conversely, where because it can be used, then it cannot be
design elements can be identified as reflecting the copyrighted.
designer's artistic judgment exercised
So the mostindependently
important thing that
of youfunctional
have to remember as you finish this subject, you must never forget the differences between
influences,
the three intellectual
conceptualproperty rights.
separability exists.
Note: Not read in class. Added for review purposes.

From Wikipedia.com: Copyright Law of the United States of As to: Copyright Patent Trademark
America (Copyright Act of 1976) Subject Literary, Useful and Goods or
What are the tests to determine whether a useful article Matter scholarly, industrially services
can be copyrighted or not? scientific applicable
artistic work inventions
1. Primary use test Where to National Bureau of Bureau of
As how is the thing primarily used, is it for Register Library Patents -‐ IPO Trademarks
art or for function? If for art, then it can be – IPO
copyrighted. But if it is primarily used for Duration of 50 years 20 years 10 years
function or to be used, then no. Right
CASES
2. Marketable as art
How do you sell it? Do you sell it as art or BAYANIHAN MUSIC vs. BMG: We are talking here about
product? According to this test, there is copyright infringement. BMG wanted all these things from
not much xxx because almost anything Jose Marie Chan. The issue here is WON the complaint
can be sold as art even garbage. should prosper. The SC held no.
Take note that just like any other intellectual
3. Temporal displacement test property rights, copyright can be transferred, assigned or
It asks “could an individual conceptualize licensed by the owner. In this case, Jose Marie Chan
the article as art without conceptualizing assigned all his rights, interests and participation over the
functionality at the same time?” two songs to BMG. Jose Marie Chan still used the songs and
produced them to be recorded by Lea Salonga so BMG
4. Denicola test sued him for infringement.
This came out in the bar exam. It was the How can the author infringe his own copyright
shock of my life since I did not know about noh? So the SC said that aside from the fact that the
this so I researched. Did you know where I contract has expired, the copyright really belongs to Jose
found the definition of this test? You Marie Chan. Section 172.2 was emphasized here: Works are
protected by the sole fact of their creation, irrespective of
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their mode or form of expression, as well as of their

49. For this reason, the protection afforded by the law
content, quality and purpose.
cannot be extended to cover them.
Copyright, in the strict sense of the term, is purely
Unquestionably, respondent Chan, being
a statutory right. It is a new or independent right
undeniably the composer and author of the lyrics of the
granted by the statute, and not simply a pre-‐
two (2) songs, is protected by the mere fact alone that he is
existing right regulated by the statute. Being a
the creator thereof, conformably with Republic Act No.
statutory grant, the rights are only such as the
8293, otherwise known as the Intellectual Property Code
statute confers, and may be obtained and enjoyed
(Section 172.2).
only with respect to the subjects and by the
An examination of petitioner's verified complaint
persons and on terms and conditions specified in
in light of the two (2) contracts sued upon and the evidence
the statute.
it adduced during the hearing on the application for
Since copyright in published works is purely a
preliminary injunction, yields not the existence of the
statutory creation, a copyright may be obtained only for a
requisite right protectable by the provisional relief but
work falling within the statutory enumeration or
rather a lingering doubt on whether there is or there is no
description.
such right.
P.D. No. 49, §2, in enumerating what are subject to
It is noted that Chan revoked and terminated said
copyright, refers to finished works and not to concepts.
contracts, along with others, on July 30, 1997, or almost
The copyright does not extend to an idea, procedure,
two years before petitioner Bayanihan wrote its sort of
process, system, method of operation, concept, principle,
complaint/demand letter dated December 7, 1999
or discovery, regardless of the form in which it is described,
regarding the recent "use/recording of the songs 'Can We
explained, illustrated, or embodied in such work.
Just Stop and Talk A While' and 'Afraid for Love to Fade,'"
Mere description by words of the general format
or almost three (3) years before petitioner filed its
of the two dating game shows is insufficient; the
complaint on August 8, 2000, therein praying, inter alia, for
presentation of the master videotape in evidence was
injunctive relief. By then, it would appear that petitioner
indispensable to the determination of the existence of
had no more right that is protectable by injunction.
probable cause. As aptly observed by respondent Secretary
of Justice:
October 15, 2014
A television show includes more than mere words
can describe because it involves a whole spectrum
CONTINUATION OF CASE
of visuals and effects, video and audio, such that
no similarity or dissimilarity may be found by
JOAQUIN vs. DRILON: If you look at Section 177, it talks
merely describing the general copyright/format of
about the exclusive rights of the owner of the copyright.
both dating game shows.
Let’s talk about number one: Reproduction of the work or
substantial portion of the work. FILIPINO SOCIETY OF COMPOSERS vs. TAN: What law did
We have two shows here: “Rhoda and Me” and the SC apply here? RA 166. The SC said that here that if the
“It’s A Date!”. If this copy cat show reproduced Rhoha and musical composition has been made used of by and
Me for a substantial part thereof, that is infringement of disseminated to the general public beyond 30 days from
copyright. But if this copy cat show has just its own show said first dissemination, the composer applies for a
having different name with a similar concept, a dating copyright for it, the application will be rejected or if the
reality show, so that is not infringement. It is not copyright is issued, it may be cancelled. Do you think the
infringement if you have more or less the same concept or same ruling will apply if it has been decided when RA 8293
idea. was already in effect? No.
You have to be able to distinguish between what Take note that this case was decided under RA 166.
constitutes infringement of copyright and what is not By the effectivity of RA 8293, several provisions of both RA
because Section 175 provides that: any idea, procedure, 165 and RA 166 were amended. Let us follow what RA 8293
system, method or operation, concept, principle, discovery says.
or mere data as such, even if they are expressed, explained, There is no need to cancel a copyright if one is the
illustrated or embodied in a work are not protected by author. It is not provided for under RA 8293. It doesn’t say
copyright. that it has to be registered 30 days from first dissemination.
From the FT of the case: What is the term of copyright? 50 years so how can you lose
The format or mechanics of a television show is your copyright? It says here “because it is deemed that it
not included in the list of protected works in §2 of P.D. No.
algene c.
270
has become public property by the donation of its

creator”
algene c.
271
and so it cannot be copyrighted. There’s even no specific Even if you're using a Creative Commons license, it is
procedure for application for copyright, it is automatic from advisable to register your copyright so you can protect your
the moment of creation under RA 8293. work from unauthorized uses through the courts.
The provision related to this case is Section 183:
Designation of Society. -‐ The copyright owners or their heirs Think of copyright as an "all rights reserved" option in
may designate a society of artists, writers or composers to which you hold all rights—something that you may desire if
enforce their economic rights and moral rights on their you don't want anyone taking, using, and potentially
behalf. So here, we have the Society of Filipino Composers making money off of your work. A Creative Commons
who own the economic and moral rights over those songs. license, on the other hand, offers a "some rights reserved"
option, which permits certain uses of your work under
“Creative Commons” – you research on this term and find particular conditions that you choose.
out what it is. It is related to Intellectual Property even if it
is not found in RA 8293. Take note of this term. Official website: https://creativecommons.org
Sourece: https://www.legalzoom.com
Creative Commons is a nonprofit organization that has Disclaimer: I’m not sure if this is the “Creative Commons”
created different kinds of licenses to allow individuals to mentioned by Atty. S. Just double check 
choose which type of copyright protection best suits them
and their work. MANLY SPORTSWEAR vs. DADODETTE: Take note, do not
go to the wrong office. What is the easiest of all? Itong
The goal of Creative Commons, according to its website, is copyright because you can simply go to the National
"to increase the amount of creativity (cultural, educational, Library. Even if you are not the owner or the creator, you
and scientific content) in the 'commons'—the body of work can just go there and register. That is not the proof of
that is available to the public for free and legal sharing, use, copyright. It is just for recording.
repurposing, and remixing." Section 2, Rule 7 of the Copyrights Safeguards and
Regulations states:
What do Creative Commons licenses do? Sec. 2 Effects of Registration and Deposit of Work.
Creative Commons licenses allow their holders to grant The registration and deposit of the work is purely
broad permission to others to share, remix, use for recording the date of registration and deposit
commercially, or otherwise use their work without having of the work and shall not be conclusive as to
to ask specific authorization for each use. copyright ownership or the term of the copyrights
or the rights of the copyright owner, including
This makes it "easier for people to share and build upon the neighboring rights.
works of others, consistent with the rules of copyright." From the FT of the case:
Lawrence Lessing, Stanford Law professor and founder of Further, the copyright certificates issued in favor of
Creative Commons, is a long-‐time advocate of information MANLY constitute merely prima facie evidence of validity
freedom and copyright reform. and ownership. However, no presumption of validity is
created where other evidence exist that may cast doubt on
How do Creative Commons licenses interact with the copyright validity. Hence, where there is sufficient
copyright? proof that the copyrighted products are not original
creations but are readily available in the market under
Creative Commons licenses work alongside the rules of various brands, as in this case, validity and originality will
copyright, allowing you to authorize a more free usage of not be presumed and the trial court may properly quash the
your work and choose the protection that best suits your issued warrant for lack of probable cause.
needs. Creative Commons licenses apply to any work Besides, no copyright accrues in favor of MANLY
covered by copyright law. despite issuance of the certificates of registration and
deposit.
By using a Creative Commons license, you do not give up At most, the certificates of registration and deposit
your copyright; you still own your work. issued by the National Library and the Supreme Court
Library serve merely as a notice of recording and
Creative Commons licenses do not replace copyright registration of the work but do not confer any right or title
registration—they apply in addition to copyright. upon the registered copyright owner or automatically put
his work under the protective mantle of the copyright law.
algene c.
272
It is not a conclusive proof of copyright ownership. As it is,

The use made of a work by or under the direction
non-‐registration and deposit of the work within the
or control of the Government, by the National
prescribed period only makes the copyright owner liable to
Library or by educational, scientific or professional
pay a fine.
institutions where such use is in the public interest
and is compatible with fair use.
SANRIO vs. EDGAR LIM: Was Lim selling the counterfeit or
The carriage of ABS-‐CBN’s signals by virtue of the
fake products? Take note that under Section 217.3: Any
must-‐carry rule in Memorandum Circular No. 04-‐08-‐88 is
person who at the time when copyright subsists in a work
under the direction and control of the government though
has in his possession an article which he knows, or ought to
the NTC which is vested with exclusive jurisdiction to
know, to be an infringing copy of the work for the purpose
supervise, regulate and control telecommunications and
of selling, distributing, etc. is guilty of infringement. He is
broadcast services/facilities in the Philippines.
now in possession of the infringing copy kunbaga the
All the satellite TV providers are required to carry
prototype.
the local channels. Is there an infringement of ABS-‐CBN’s
According to Lim, how can he be guilty of
copyright when their shows are included in the line-‐up of
infringement when he is only a seller? He is not in
the satellite TV providers? No. Even though you can watch
possession of the infringing copy. He also claims that he
channel 2 on your TV, you know that it is the ABS-‐CBN
bought the products from the authorized seller of Sanrio.
show. The satellite TV show is not saying na the show is
The SC said no. He cannot be held liable under Section 217.3
theirs. Take note of two kinds of re-‐broadcasting. Just take
because of the two requisites that must be complied with:
note that the satellite providers do not infringe the rights
1. possession of the infringing copy and
of the networks when their channels are included in the line
2. knowledge or suspicion that the copy is an
up of the providers.
infringement of the genuine article.
If he was the one who has the prototype and he is
The imposition of the must-‐carry rule is within the
manufacturing it itself, then that is infringement but Lim
NTC’s power to promulgate rules and regulations, as public
bought the products from the authorized seller of Sanrio.
safety and interest may require, to encourage a larger and
Gift Gate Incorporated (GGI) should go after their
more effective use of communications, radio and television
distributors and not to Lim for selling to other retailers.
broadcasting facilities, and to maintain effective
Gift Gate Inc. failed to prove that Orignamura knew
competition among private entities in these activities
that the merchandise he sold was counterfeit.
whenever the Commission finds it reasonably feasible.
Orignanamura was able to show that he obtained these
As correctly observed by the Director-‐General of
goods from legitimate sources.
the IPO:
Under Section 217.3, fraud is necessary. To be
Accordingly, the “Must-‐Carry Rule” under NTC
liable, one must have knowledge or suspicion that the copy
Circular No. 4-‐08-‐88 falls under the foregoing category
is an infringement of the genuine article.
of limitations on copyright. This Office agrees with
ABS-‐CBN vs. PHILIPPINE MULTI-‐MEDIA: ABS-‐CBN produces the Appellant [herein respondent PMSI] that the
TV shows and it has its own channels – 2 and 23. The shows “Must-‐Carry Rule” is in consonance with the
shown there are ABS-‐CBN produced shows or perhaps principles and objectives underlying Executive Order
bought from foreign networks. When ABS-‐CBN shows No. 436,28 to wit:
those foreign TV shows, it is re-‐broadcasting the TV show of The Filipino people must be given wider
another with the consent of the foreign network. So it access to more sources of news, information,
broadcasts its own shows and re-‐broadcasts the foreign TV education, sports event and entertainment
shows. Of course, ABS-‐CBN cannot re-‐broadcast the shows of programs other than those provided for by mass
GMA. media and afforded television programs to attain a
Here, we have a “network” that broadcasts and re-‐ well informed, well-‐versed and culturally refined
broadcasts and a “satellite provider” Dream. Under the citizenry and enhance their socio-‐economic
NTC Regulation, all cable TV or satellite TV providers (Sky, growth:
Dream, Cignal, etc) have to follow the “must-‐carry rule.” WHEREAS, cable television (CATV)
This means that all the local channels of the local networks systems could support or supplement the services
must also be included in the line-‐up of these cable or provided by television broadcast facilities, local
satellite TV providers. and overseas, as the national information highway
So it falls under Section 184 – the limitations on to the countryside.
copyright:
algene c.
273
KHO vs. SUMMERVILLE: Kho filed a complaint for injunction

Patentable inventions, on the other hand, refer to any
against Summerville. According to Kho, it is doing business
technical solution of a problem in any field of human
under the name of KEC Cosmetics Laboratory, and is the
activity which is new, involves an inventive step and is
registered owner of the copyrights Chin Chun Su and Oval
industrially applicable.
Facial Cream Container/Case. Kho claims that she also has
patent rights on Chin Chun Su & Device and Chin Chun Su
PEARL and DEAN vs. SM: What did the Supreme Court say
for medicated cream after purchasing the same from
about the motive of Pearl and Dean in applying for a
Quintin Cheng, the registered owner thereof.
copyright registration instead of a patent? The copyright
Summerville, according to Kho, advertised and sold
has a lesser tedious process compared to the patent. How
Kho’s cream products under the brand name Chin Chun Su,
many years does it have? In copyright, 50 years and in
in similar containers that Kho uses, thereby misleading the
patent, 20 only from the filing date. Sabi ng SC, madaya
public, and resulting in the decline in the petitioner's
daw if they include the light boxes in the copyright because
business sales and income. So Kho said that Summerville
it would by-‐pass the law. So what can be copyrighted are
should be enjoined from allegedly infringing on the
only the technical descriptions.
copyrights and patents of Kho.
This case is very instructive as to how these
According to Summerville, it is the exclusive and
different laws are applied. Unfair competition can only be
authorized importer, re-‐packer and distributor of Chin Chun
filed by somebody who has established a goodwill like SM.
Su products manufactured by Shun Yi Factory of Taiwan;
Read the case  (G.R. No. 148222)
that the said Taiwanese manufacturing company
authorized Summerville to register its trade name Chin
Chun Su Medicated Cream with the IPO.
So the issue is WON the copyright and patent over
the name and the container of a beauty cream product
would entitle the registrant, Kho, to use and exercise
ownership to the exclusion of others.
The SC said no. Trademark, copyright and patents
are different intellectual property rights that cannot be
interchanged with one another. How can you copyright a
container with medicated products diba? If you want to
register the formula, go the Bureau of Patents. If you want
to register the container, go to the Bureau of Trademarks.
Kho has no right to support her claim for the
exclusive use of the subject trade name and its container.
The name and container of a beauty cream product are
proper subjects of a trademark inasmuch as the same falls
squarely within its definition. In order to be entitled to
exclusively use the same in the sale of the beauty cream
product, the user must sufficiently prove that she
registered or used it before anybody else did. Kho’s
copyright and patent registration of the name and
container would not guarantee her the right to the
exclusive use of the same for the reason that they are not
appropriate subjects of the said intellectual rights.
A trademark is any visible sign capable of
distinguishing the goods (trademark) or services (service
mark) of an enterprise and shall include a stamped or
marked container of goods. In relation thereto, a trade
name means the name or designation identifying or
distinguishing an enterprise. Meanwhile, the scope of a
copyright is confined to literary and artistic works which are
original intellectual creations in the literary and artistic
domain protected from the moment of their creation.
algene c.
274
“When you concentrate your energy purposely on

the future possibility that you aspire to realize,
your energy is passed on to it and
makes it attracted to you with a force stronger
than the one you directed towards it.”
— Stephen Richards
algene c.

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1

LAWS ON PROPERTY 2014

June 11, 2014

of its nature just like this building (you cannot

considered immovable by nature if they are spontaneous

Article 415, paragraph 4 falls under immovable by purpose

Par. 5: Machinery, receptacles, instruments or implements

Example sa exception to the exception: Banks transfer

Machinery and Engineering vs. CA: We have a limestone

incorporation because they can be moved whenever;

immovable under par. 5 because they are not placed by the

Laurel vs. Judge Abrogar: You all know that stealing

We already looked at Articles 415 and 416. If you noticed,

We already tackled the first classification of property as to

bed in this case now belongs to M who owns the property

reclaimed area is automatically property of public

words, even though Articles 423 and 424 mention only

(example: A has a parcel of land and it’s adjacent

Let’s now go to the actions to recover. The right to recover

Example: X borrowed a car from C and parked it from afar.

since the contract has expired, his right to hold

possession has terminated. Then, he can now be

invasion : detainer) investigation before it disconnected the services, it was

According to Article 536, He who believes that he has an

Let’s go to the next important provision which we call the another

Example: If a person picked up an unknown object in the

discussion in the book of Paras but we will not go through

It says that “without detriment to servitudes and subject to

If one’s property is taken or destroyed in the exercise of the

So even when NAPOCOR built the tunnels 115 meters

value of the materials. If he is in bad faith, then he also

Is the BPS in this article in good faith or bad faith? Good

of the lease and in case of disagreement, the court shall fix

In this case, Pecson was the owner as well as the builder

A family home to be considered as a family home should

Communities vs. Nanol: Article 448 can still be applied. This

Article 443 Article 449

1. Demand the demolition of the work

land shall answer subsidiarily for their value and only in

 If the material owner is in bad faith, he loses the

If C only tries to register in 1995 and it is proven that X has

Secretary of Public Works, Transportation and

What is a navigable or floatable river?

This is similar to our discussions on accretion with respect

accessory may demand its separation. How it can be done, I

If the sugar owned by B is 60% and the flour owned by A is

If both are in bad faith, then again their rights and

belonging to another. It doesn’t have to be one specific

CASE: The provisions that give us the requisites for quieting of

There was a deed of sale that was executed. It was only

no cloud. What is now the solution of Metrobank?

the plaintiff's benefit.

is owned in common, then the usage, enjoyment

Balus vs. Balus: The property here was foreclosed because

that: The deed of sale shall not be recorded in the Registry

thing owned in common but it says that “so in accordance

percentage of his shareholdings will be renounced in favor

2. If the resolution of the financial majority is

What are other examples of alteration? Sale, mortgage,

1. Article 489: Repairs for preservation of the thing –

other words, Abejo now will have the rights that

Wee vs. De Castro: In this case, the action file is unlawful

co-‐owner can claim title to any definite portion thereof.

expenses made. Likewise, each co-‐owner shall pay for