Bachrach Motor Co., Inc. v. Talisay Silay Milling Co.
G.R. No. 35223, Septe!er "#, "$3", 5% &hil. ""#
Ro'al(e), *. FACTS: On December 22, 1923, the Talisay-Silay Milling Co, !nc, "as in#ebte# to the $hili%%ine &ational 'an( To sec)re the %ayment o* its #ebt, it s)ccee#e# in in#)cing its %lanters, among "hom, "as Mariano +acson +e#esma, to mortgage their lan# to the cre#itor ban( An# in or#er to com%ensate those %lanters *or the ris( they "ere r)nning "ith their %ro%erty )n#er the mortgage, the a*oresai# central, by a resol)tion %asse# on that same #ate, ie, December 22, 1923, )n#ertoo( to cre#it the o"ners o* the %lantation th)s mortgage# e,ery year "ith a s)m e-)al to t"o %er cent)m o* the #ebt sec)re# accor#ing to yearly balance, the %ayment o* the bon)s being ma#e at once, or in %art *rom time to time, as soon as the central became *ree o* its obligations to the a*oresai# ban(, an# o* those contracte# by ,irt)e o* the contract o* s)%er,ision, an# ha# *)n#s "hich might be so )se#, or as soon as it obtaine# *rom sai# ban( a)thority to ma(e s)ch %ayment'achrach Motor Co, !nc .le# a com%laint against the Talisay-Silay Milling Co, !nc, *or the #eli,ery o* the amo)nt $13,/01 or %romissory notes or other instr)ments or cre#it *or that s)m %ayable on 2)ne 31, 1931, as bon)s in *a,or o* Mariano +acson +e#esma The $hili%%ine &ational 'an( .le# a thir# %arty claim alleging a %re*erential right to recei,e any amo)nt "hich Mariano +acson +e#esma might be entitle# to *rom the Talisay-Silay Milling Co as bon)s, beca)se that "o)l# be ci,il *r)its o* the lan# mortgage# to sai# ban( by sai# #ebtor *or the bene.t o* the central re*erre# to, an# by ,irt)e o* a #ee# o* assignment, an# %raying that sai# central be or#ere# to #eli,ere# #irectly to the inter,ening ban( sai# s)m on acco)nt o* the latter3s cre#it against the a*oresai# Mariano +acson +e#esma !SS45: 6hether or not the bon)s in -)estion is ci,il *r)its 75+D: &o The sai# bon)s bears no imme#iate, b)t only a remote acci#ental relation to the lan# mentione#, ha,ing been grante# as com%ensation *or the ris( o* ha,ing s)b8ecte# one3s lan# to a lien in *a,or o* the ban(, *or the bene.t o* the entity granting sai# bon)s !* this bon)s be income or ci,il *r)its o* anything, it is income arising *rom sai# ris(, or, i* one chooses, *rom Mariano +acson +e#esma3s generosity in *acing the #anger *or the %rotection o* the central, b)t certainly it is not ci,il *r)its or income *rom the mortgage# %ro%erty 7ence, the amo)nt o* the bon)s, accor#ing to the resol)tion o* the central granting it, is not base# )%on the ,al)e, im%ortance or any other circ)mstance o* the mortgage# %ro%erty, b)t )%on the total ,al)e o* the #ebt thereby sec)re#, accor#ing to the ann)al balance, "hich is something -)ite #istinct *rom an# in#e%en#ent o* the %ro%erty re*erre# to Ignacio v. +ilario G.R. No. ,-"#5, .'g'st 3/, "$0%, #% &hil. %/5 Moran, C. *. FACTS: This case concerns the o"nershi% o* a %arcel o* lan#, %artly rice-lan# an# %artly resi#ential The lo"er co)rt ren#ere# 8)#gment hol#ing %lainti9s as the legal o"ners o* the "hole %ro%erty b)t conce#ing to #e*en#ants the o"nershi% o* the ho)ses an# granaries b)ilt by them on the resi#ential %ortion "ith the rights o* a %ossessor in goo# *aith, in accor#ance "ith article 3:1 o* the Ci,il Co#e S)bse-)ently, the %lainti9s %raye# *or an or#er o* e;ec)tion alleging that since they chose neither to %ay #e*en#ants *or the b)il#ings nor to sell to them the resi#ential lot, sai# #e*en#ants sho)l# be or#ere# to remo,e the str)ct)re at their o"n e;%ense an# to restore %lainti9s in the %ossession o* sai# lot De*en#ants ob8ecte# to this motion "hich, a*ter hearing, "as grante# by 2)#ge &ati,i#a# 7ence, this %etition by #e*en#ants %raying *or <a= a restraint an# ann)lment o* the or#er o* e;ec)tion iss)e# by 2)#ge &ati,i#a#> <b= an or#er to com%el %lainti9s to %ay them the s)m o* $2,111 *or the b)il#ings, or sell to them the resi#ential lot *or $?0> or <c=, a rehearing o* the case *or a #etermination o* the rights o* the %arties )%on *ail)re o* e;tra-8)#icial settlement !SS45: 6hether the res%on#ent Co)rt erre# in its 8)#gment 75+D: @es The Ci,il Co#e %ro,i#es: AAT 3:1 The o"ner o* lan# on "hich anything has been b)ilt, so"n or %lante# in goo# *aith, shall ha,e the right to a%%ro%riate as his o"n the "or(, so"ing or %lanting, a*ter the %ayment o* the in#emnity state# in articles ?03 an# ?0?, or to oblige the one "ho b)ilt or %lante# to %ay the %rice o* the lan#, an# the one "ho so"e#, the %ro%er rent AAT ?03 &ecessary e;%enses shall be re*)n#e# to e,ery %ossessor> b)t only the %ossessor in goo# *aith may retain the thing )ntil s)ch e;%enses are ma#e goo# to him 4se*)l e;%enses shall be re*)n#e# to the %ossessor in goo# *aith "ith the same right o* retention, the %erson "ho has #e*eate# him in the %ossession ha,ing the o%tion o* re*)n#ing the amo)nt o* the e;%enses or %aying the increase in ,al)e "hich the thing may ha,e ac-)ire# in conse-)ence thereo* The o"ner o* the b)il#ing erecte# in goo# *aith on a lan# o"ne# by another, is entitle# to retain the %ossession o* the lan# )ntil he is %ai# the ,al)e o* his b)il#ing, )n#er article ?03 The o"ner o* the lan#, )%on the other han#, has the o%tion, )n#er article 3:1, either to %ay *or the b)il#ing or to sell his lan# to the o"ner o* the b)il#ing ')t he cannot, as res%on#ents here #i#, re*)se both to %ay *or the b)il#ing an# to sell the lan# an# com%el the o"ner o* the b)il#ing to remo,e it *rom the lan# "here it is erecte# 7e is entitle# to another motion only "hen, a*ter ha,ing chosen to sell his lan#, the other %arty *ails to %ay *or the same The Co)rt hol#s, there*ore, that the or#er o* 2)#ge &ati,i#a# com%elling #e*en#ants-%etitioners to remo,e their b)il#ings *rom the lan# belonging to %lainti9s-res%on#ents only beca)se the latter chose neither to %ay *or s)ch b)il#ings not to sell the lan#, is n)ll an# ,oi#, *or it amen#s s)bstantially the 8)#gment so)ght to be e;ec)te# an# is, *)rthermore, o9ensi,e to articles 3:1 an# ?03 o* the Ci,il Co#e Ignao v. Intere(iate .ppellate Co'rt G.R. No. #21#%, *an'ary "1, "$$", "$3 SCR. "# 2ernan, C. *. FACTS: $etitioner Florencio !gnao an# his )ncles 2)an !gnao an# !si#ro !gnao "ere co-o"ners o* a 03?s-m lan# locate# in Ca,ite $)rs)ant to an action *or %artition .le# by %etitioner, $age " o* # the CF! o* Ca,ite #irecte# the %artition o* the sai# lan# A total o* 1330 s-m "as allotte# to the %etitionerBs )ncles "hile the remaining 2::0 "as allotte# to the %etitioner 7o"e,er, "hen 2)an an# !si#ro b)ilt their ho)ses they encroache# )%on a %ortion o* lan# belonging to Florencio A geo#etic engineer s)r,eye# the lan# an# it "as *o)n# o)t that 2)an an# !si#ro occ)%ie# a total o* 111s-m o* FlorencioBs lot The trial co)rt "hich base# its #ecision on Article ??/ o* the Ci,il Co#e, r)le# that Florencio sho)l# ha,e the choice to either a%%ro%riate to himsel* that %art o* the ho)se stan#ing on his lot or to re-)ire 2)an an# !si#ro to %ay the %rice o* the lan# ')t since the .rst o%tion seems to be im%ractical, it or#ere# to sell to 2)an an# !si#ro those %ortions occ)%ie# by them beca)se it is the C"or(able sol)tionD 4%on a%%eal %etitioner conten#s that Article ??/ cannot be a%%lie# beca)se they are co-o"ners o* he s)b8ect %ro%erty 7o"e,er, the a%%ellate co)rt aErme# in toto the #ecision o* the trial co)rt !SS45: 6hether or not Article ??/ o* the Ci,il Co#e is a%%licable in the case at bar 75+D: @es !t is tr)e that Article ??/ cannot be a%%lie# "here a co-o"ner b)il#s )%on a lan# o"ne# in common 7o"e,er, in the case at bar, the co-o"nershi% has alrea#y been terminate# by ,irt)e o* the %artition, th)s, Article ??/ no" a%%lies since the b)il#er is not anymore consi#ere# as an o"ner o* the lan# "here the ho)se "as b)ilt As to the "or(able sol)tion a%%lie# by the lo"er co)rt, the same cannot be )%hel# beca)se Article ??/ clearly states that the right o* choice belongs to the lan# o"ner an# not )%on the b)il#er an# the co)rts Th)s, "hether it might seem im%ractical, the lan#o"ner may choose to a%%ro%riate the im%ro,ements 2ilipinas Colleges, Inc. v. Garcia Ti!ang, et. al., G.R. No. ,-"21"2, Septe!er 2$, "$1$, "%0 SCR. 21# Barrera, *. FACTS: A*ter a%%ro%riate %rocee#ings, the Co)rt o* A%%eals hel#, among other things, that Fili%inas Colleges, !nc are #eclare# to ha,e ac-)ire# the rights o* the s%o)ses Timbang in the -)estione# lots, they are or#ere# to %ay the s%o)ses Timbang in the amo)nt o* $10,/1F91 %l)s s)ch other amo)nt "hich sai# s%o)ses might ha,e %ai# or ha# to %ay On the other han#, Maria Ger,acio 'las "as also #eclare# to be a b)il#er in goo# *aith o* the school b)il#ing constr)cte# in the lot in -)estion an# "as entitle# to be %ai# the amo)nt o* $19,11111 *or the same Also, in case that Fili%inas Colleges, !nc *aile# to #e%osit the ,al)e o* the lan#, "hich a*ter li-)i#ation "as .;e# at $32,/093?, "ithin the 91-#ay %erio# set by the Co)rt, Fili%inas Colleges "o)l# lose all its rights to the lan# an# the s%o)ses Timbang "o)l# then become the o"ners thereo* !* that is the case, the Timbangs are or#ere# to ma(e (no"n to the co)rt their o%tion )n#er Article ??/ o* the Ci,il Co#e "hether they "o)l# a%%ro%riate the b)il#ing in -)estion, in "hich e,en they "o)l# ha,e to %ay Fili%inas Colleges, !nc the s)m o* $19,11111, or "o)l# com%el the latter to ac-)ire the lan# an# %ay the %rice thereo* Fili%inas Colleges, !nc *aile# to %ay the s)m o* $32,/093? so the s%o)ses Timbang ma#e (no"n to the co)rt their #ecision that they ha# chosen not to a%%ro%riate the b)il#ing b)t to com%el Fili%inas Colleges, !nc, *or the %ayment o* the s)m o* $32,/09,3? "hich "as grante# by the Co)rt As a conse-)ence o* "hich, a "rit o* e;ec)tion "as iss)e# Mean"hile, 'las .le# a motion *or e;ec)tion o* her 8)#gment re%resenting the )n%ai# %ortion o* the %rice o* the ho)se sol# to Fili%inas "hich "as grante# +e,y "as ma#e on the ho)se in ,irt)e o* the "rits o* e;ec)tion Then, the Sheri9 o* Manila sol# the b)il#ing in %)blic a)ction in *a,or o* the s%o)ses Timbang, as the highest bi##ers Se,eral motion "ere the s)bse-)ently .le# be*ore the lo"er co)rt "herein the co)rt hel# that: a= the Sheri93s certi.cate o* sale co,ering a school b)il#ing sol# at %)blic a)ction "as n)ll an# ,oi# )nless "ithin 10 #ays *rom notice o* sai# or#er s%o)ses Timbang shall %ay to 'las the s)m o* $0,F0111 that the s%o)ses Timbang ha# bi# *or the b)il#ing at the Sheri93s sale> b= that Fili%inas is o"ner o* 2?011H32,/093? )n#i,i#e# interest in +ot &o 2-a on "hich the b)il#ing sol# in the a)ction sale is sit)ate#> an# c= that the )n#i,i#e# interest o* the Fili%inas in the lot sho)l# be sol# to satis*y the )n%ai# %ortion o* the 8)#gment in *a,or o* 'las an# against Fili%inas in the amo)nt o* $/,21111 min)s the s)m o* $0,F0111 The s%o)ses Timbang conten#s that beca)se the b)il#er in goo# *aith has *aile# to %ay the %rice o* the lan# a*ter the o"ners thereo* e;ercise# their o%tion )n#er Article ??/ o* the Ci,il Co#e, the b)il#er lost his right o* retention %ro,i#e# in Article 0?: an# that by o%eration o* Article ??0, the s%o)ses Timbang as o"ners o* the lan# a)tomatically became the o"ners i%so *acto o* the school b)il#ing !SS45: 6hether or not the s%o)ses Timbang a)tomatically become the o"ners o* the b)il#ing )%on *ail)re o* Fili%inas to %ay the ,al)e o* the lan# 75+D: &o 'ase# on Article ??/ an# 0?: o* the &e" Ci,il Co#e, the o"ner o* the lan# has the right to choose bet"een a%%ro%riating the b)il#ing by reimb)rsing the b)il#er o* the ,al)e thereo* or com%elling the b)il#er in goo# *aith to %ay *or his lan# 5,en this secon# right cannot be e;ercise# i* the ,al)e o* the lan# is consi#erably more than that o* the b)il#ing !n a##ition to the right o* the b)il#er to be %ai# the ,al)e o* his im%ro,ement, Article 0?: gi,es him the corollary right o* retention o* the %ro%erty )ntil he is in#emni.e# by the o"ner o* the lan# There is nothing in the lang)age o* these t"o articles, ??/ an# 0?:, "hich "o)l# 8)sti*y the concl)sion o* a%%ellants that, )%on the *ail)re o* the b)il#er to %ay the ,al)e o* the lan#, "hen s)ch is #eman#e# by the lan#-o"ner, the latter becomes a)tomatically the o"ner o* the im%ro,ement )n#er Article ??0 The case o* 'ataclan ,s 'ernar#o cannot be a%%lie# in this case in the sense that altho)gh it is tr)e it "as #eclare# therein that in the e,ent o* the *ail)re o* the b)il#er to %ay the lan# a*ter the o"ner thereo* has chosen this alternati,e, the b)il#er3s right o* retention %ro,i#e# in Article 0?: is lost, ne,ertheless there "as nothing sai# that as a conse-)ence thereo*, the b)il#er loses entirely all rights o,er his o"n b)il#ing Also, in the %resent case, the Co)rt o* A%%eals has alrea#y a#8)#ge# that a%%ellee 'las is entitle# to the %ayment o* the )n%ai# balance o* the %)rchase %rice o* the school b)il#ing 'las is act)ally a lien on the school b)il#ing are concerne# The or#er o* the lo"er co)rt #irecting the Timbang s%o)ses, as s)ccess*)l bi##ers, to %ay in cash the amo)nt o* their bi# in the s)m o* $0,F0111 is there*ore correct $age 2 o* # Manoto3 Realty v. Tecson G.R. No. ,-0#0#5 .'g'st "$, "$11, "%0 SCR. 21# G'tierre) *r., *. FACTS: $etitioner Manoto( Aealty .le# a com%laint against &ilo Ma#langa"a *or reco,ery o* %ossession "ith #amages "ith the Co)rt o* First !nstance o* Manila Sai# co)rt ren#ere# 8)#gment #eclaring Ma#langa"a as a b)il#er- %ossessor in goo# *aith> or#ering the com%any to recogniIe the right o* Ma#langa"a to remain in +ot 3?0, 'loc( 1, o* the Clara Tamb)nting S)b#i,ision )ntil a*ter he shall ha,e been reimb)rse# by the com%any the s)m o* $F,01111, "itho)t %rono)ncement as to costs &ot satis.e# "ith the trial co)rtBs #ecision, %etitioner a%%eale# to the Co)rt o* A%%eals an# )%on aErming the trial co)rtBs #ecision, it ele,ate# the case to the S)%reme Co)rt On 2)ly 13, 19FF, the S)%reme Co)rt iss)e# a resol)tion #enying Manoto(Bs %etition *or lac( o* merit $etitioner then .le# "ith the trial co)rt <2)#ge 2ose 7Tecson=, a motion *or the a%%ro,al o* the com%anyBs e;ercise o* o%tion an# *or satis*action o* 8)#gment 7o"e,er, 2)#ge Tecson #enie# the motion *or a%%ro,al 7ence, this %etition is .le# !SS45: 6hether or not res%on#ent 2)#ge Tecson can #eny %etitionerBs <lan#o"ner= motion to a,ail o* its o%tion 75+D: &o There is, there*ore, no basis *or the res%on#ent 8)#ge to #eny the %etitionerBs motion to a,ail o* its o%tion to a%%ro%riate the im%ro,ements ma#e on its %ro%erty &either can the 8)#ge #eny the iss)ance o* a "rit o* e;ec)tion beca)se the %ri,ate res%on#ent "as a#8)#ge# a b)il#er in goo# *aith or on the gro)n# o* C%ec)liar circ)mstances "hich s)%er,ene# a*ter the instit)tion o* this case, li(e, *or instance, the intro#)ction o* certain ma8or re%airs o* an# other s)bstantial im%ro,ementsJD beca)se the o%tion gi,en by la" belongs to the o"ner o* the lan# 4n#er Article ??/ o* the Ci,il Co#e, the right to a%%ro%riate the "or(s or im%ro,ements or to oblige the one "ho b)ilt or %lante# to %ay the %ro%er %rice o* the lan# belongs to the o"ner o* the lan# The only right gi,en to the b)il#er in goo# *aith is the right o* reimb)rsement o* necessary e;%enses *or the %reser,ation o* the lan#> the b)il#er cannot com%el the lan#o"ner to sell s)ch lan# to the *ormer Bernar(o v. Bataclan G.R. No. ,-00%/%, Nove!er 21, "$31, %% &hil. 5$1 ,a'rel, *. FACTS: 'ernar#o bo)ght a %arcel o* lan# *rom Samonte "hich "as locate# in Ca,ite !n or#er that he may ta(e %ossession an# occ)%y the sai# lan#, he .le# a case in the CF! *or s)ch %)r%ose an# the co)rt ren#ere# a *a,orable #ecision *or 'ernar#o 7o"e,er, "hen he "as s)%%ose#ly set in occ)%ying the sai# lan#, he *o)n# 'ataclan 7e "as "ithin the %remises beca)se he "as a)thoriIe# by the %re,io)s o"ners to clear the lan# an# ma(e the necessary im%ro,ements he #eems .t, *)rther claiming that s)ch a)thoriIation "as grante# to him e,er since 1922 Since 'ataclan "as not a %arty in the .rst case, 'ernar#o .le# against him a se%arate case 'ernar#o "as #eclare# o"ner b)t the #e*en#ant "as hel# to be a %ossessor in goo# *aith *or "hom the "or( #one an# im%ro,ements ma#e by him sho)l# be reimb)rse# An a%%eal to the #ecision o* the co)rt "as .le# by both 'ernar#o an# 'ataclan The #ecision "as mo#i.e# by lo"ering the %rice o* the lan# *rom $311 to $211 %er hectare 'ernar#o "as gi,en 31 #ays to e;ercise his o%tion, "hether to sell the lan# to 'ataclan or to b)y the im%ro,ements *rom him 'ernar#o chose the o%tion "hich "o)l# re-)ire 'ataclan to %ay him the ,al)e o* the lan# at the rate o* $211 %er hectare 7o"e,er, 'ataclan in*orme# the co)rt that he "ill not be able to %ay *or the %rice o* the lan# The co)rt then ga,e 'ataclan 31 #ays to %ay the %rice o* the %ro%erty an# a*ter the la%se o* the %erio#, the lan# shall be sol# in a %)blic a)ction A*ter 31 #ays, the lan# "as sol# to Teo#oro at a %)blic a)ction, a*ter *ail)re o* 'ataclan to %ay "ithin the %erio# the %)rchase %rice !SS45: 6hether or not 'ataclan has the right o* retention o,er the %arcel o* lan# in -)estion 75+D: &o 'ataclan no longer has lost the right o* retention The o%tion o* the o"ner "as alrea#y e;ercise# "here he #eci#e# that he "ill 8)st allo" the #e*en#ant to %)rchase the lan# s)ch that 'ataclan "as to com%ly "ith the o%tion i* he "ants to retain the lan# From the moment that he tol# the co)rts o* his inability to %ay *or the %rice o* the lan#, he alrea#y lost his right to retain the lan# Ballatan v. Co'rt o4 .ppeals G.R. No. "25%13, March 2, "$$$, 3/0 SCR. 30 &'no, *. FACTS: 'allatan, MartineI an# +ing are the o"ners o* a#8acent lots in Malabon, Metro Manila +ot &o 2?, ?1? s-)are meters in area, is registere# in the name o* %etitioners 5#en 'allatan an# s%o)ses 'etty MartineI an# Chong Chy +ing +ots &os 20 an# 2: are registere# in the name o* res%on#ent GonIalo Go, Sr On +ot &o 20, res%on#ent 6inston Go, son o* GonIalo Go, Sr, constr)cte# his ho)se A#8acent to +ot &o 2: is +ot &o 2F, registere# in the name o* res%on#ent +i Ching @ao !n 19/0, %etitioner 'allatan constr)cte# her ho)se on +ot &o 2? D)ring the constr)ction, she notice# that the concrete *ence an# si#e %ath"ay o* the a#8oining ho)se o* res%on#ent 6inston Go encroache# on the entire length o* the eastern si#e o* her %ro%erty 7er b)il#ing contractor in*orme# her that the area o* her lot "as act)ally less than that #escribe# in the title Forth"ith, 'allatan in*orme# res%on#ent Go o* this #iscre%ancy an# his encroachment on her %ro%erty Go, ho"e,er, claime# that his ho)se, incl)#ing its *ence an# %ath"ay, "ere b)ilt "ithin the %arameters o* his *ather3s lot> an# that this lot "as s)r,eye# by 5ngineer 2ose K)e##ing, the a)thoriIe# s)r,eyor o* the Araneta !nstit)te o* Agric)lt)re <A!A=, the o"ner-#e,elo%er o* the s)b#i,ision %ro8ect So 'allatan calle# the attention o* the !A! an# a*ter another s)r,ey o* the lan#, 5ngineer K)e##ing *o)n# that the lot area o* %etitioner 'allatan "as less by *e" meters an# that o* res%on#ent +i Ching @ao, "hich "as three lots a"ay, increase# by t"o meters 5ngineer K)e##ing #eclare# that he ma#e a ,eri.cation s)r,ey o* +ots &os 20 an# 2: o* res%on#ents Go in 19/3 an# allege#ly *o)n# the bo)n#aries to ha,e been in their %ro%er %osition 7e, ho"e,er, co)l# not e;%lain the re#)ction in 'allatan3s area since he "as not %resent at the time res%on#ents Go constr)cte# their bo)n#ary "alls On 11 2)ne 19/0, %etitioner 'allatan ma#e a "ritten #eman# on res%on#ents Go to remo,e an# #ismantle their im%ro,ements on +ot &o 2? b)t Go re*)se# So 'allatan instit)te# against Go a ci,il case *or reco,ery o* %ossession the ATC o* Malabon #eci#e# in *a,or o* 'allatan, or#ering the Go3s to ,acate the s)b8ect %ortion o* +ot $age 3 o* # &o 2?, #emolish their im%ro,ements an# %ay %etitioner 'allatan act)al #amages, attorney3s *ees an# the costs o* the s)it Go a%%eale# !SS45: 6hether or not 'allatan ha,e a right o* remotion 75+D: All the %arties ha,e acte# in goo# *aith so Article ??/ m)st a%%ly $etitioners are or#ere# to e;ercise "ithin thirty <31= #ays *rom .nality o* the #ecision their o%tion to either b)y the %ortion o* res%on#ents Go3s im%ro,ement on their +ot &o 2?, or sell to sai# res%on#ents the %ortion o* their lan# on "hich the im%ro,ement stan#s !* %etitioners elect to sell the lan# or b)y the im%ro,ement, the %)rchase %rice m)st be at the %re,ailing mar(et %rice at the time o* %ayment !* b)ying the im%ro,ement "ill ren#er res%on#ents Go3s ho)se )seless, then %etitioners sho)l# sell the encroache# %ortion o* their lan# to res%on#ents Go !* %etitioners choose to sell the lan# b)t res%on#ents Go are )n"illing or )nable to b)y, then the latter m)st ,acate the s)b8ect %ortion an# %ay reasonable rent *rom the time %etitioners ma#e their choice )% to the time they act)ally ,acate the %remises ')t i* the ,al)e o* the lan# is consi#erably more than the ,al)e o* the im%ro,ement, then res%on#ents Go may elect to lease the lan#, in "hich case the %arties shall agree )%on the terms, the lease Sho)l# they *ail to agree on sai# terms, the co)rt o* origin is #irecte# to .; the terms o* the lease Spo'ses 5el 6capo v. .!esia G.R. No. ,-0$2"$, .pril "5, "$$1, "%/ SCR. 3#$ Gancayco, *. FACTS: $lainti9s L s%o)ses Conce%cion Fernan#eI an# 5stanislao Del Cam%o an# #e*en#ant 'ernar#a Fernan#eI Abesia are co-o"ners o* %arcel o* lan# "ith an area o* ?0 s-)are meters an# #i,i#e# in the %ro%ortion o* 2H3 an# 1H3 share each, res%ecti,ely A commissioner, "ho is a%%ointe# by the co)rt, con#)cte# a s)r,ey an# recommen#e# that the %ro%erty be #i,i#e# into t"o lots: +ot 11:1 L A "ith an area o* 31 s-)are meters *or the %lainti9s an# +ot 11:1 L ' "ith an area o* 10 s-)are meters *or the #e*en#ants 7o"e,er, it "as sho"n in the s(etch %lan that the ho)se o* the #e*en#ant occ)%ie# the %ortion "ith an area o* 0 s-)are meters o* +ot 11:1 L A o* %lainti9s The %arties as(e# the co)rt to .nally settle an# a#8)#icate "ho among the %arties sho)l# ta(e %ossession o* the 0 s-)are meters o* lan# !SS45S: 1= 6hether or not Article ??/ o* the Ci,il Co#e, the rights o* a b)il#er in goo# *aith, sho)l# be a%%lie# to the %lainti9-s%o)ses Del Cam%o 2= 6hether or not the ho)se o* the #e*en#ant Abesia sho)l# be remo,e# an# #emolishe# at their e;%ense 75+D: 1= @es Article ??/ o* the Ci,il Co#e cannot a%%ly "here a co- o"ner b)il#s, %lants or so"s on the lan# o"ne# in common *or then, he #i# not b)il#, %lant or so" )%on lan# that e;cl)si,ely belongs to another b)t o* "hich he is a co-o"ner The co- o"ner is not a thir# %erson )n#er the circ)mstances, an# the sit)ation is go,erne# by the r)les o* co-o"nershi% 7o"e,er, "hen, as in this case, the co-o"nershi% is terminate# by the %artition an# it a%%ears that the ho)se o* #e*en#ants o,erla%s or occ)%ies a %ortion o* 0 s-)are meters o* the lan# %ertaining to %lainti9s "hich the #e*en#ants ob,io)sly b)ilt in goo# *aith, then the %ro,isions o* Article ??/ o* the ne" Ci,il Co#e sho)l# a%%ly Manresa an# &a,arro Aman#i agree that the sai# %ro,ision o* the Ci,il Co#e may a%%ly e,en "hen there "as co-o"nershi% i* goo# *aith has been establishe# 2= !t #e%en#s A%%lying Article ??/ o* the Ci,il Co#e, the %lainti9s ha,e the right to a%%ro%riate sai# %ortion o* the ho)se o* #e*en#ants )%on %ayment o* in#emnity to #e*en#ants as %ro,i#e# *or in Article 0?: o* the Ci,il Co#e Other"ise, the %lainti9s may oblige the #e*en#ants to %ay the %rice o* the lan# occ)%ie# by their ho)se 7o"e,er, i* the %rice as(e# *or is consi#erably m)ch more than the ,al)e o* the %ortion o* the ho)se o* #e*en#ants b)ilt thereon, then the latter cannot be oblige# to b)y the lan# The #e*en#ant shall then %ay the reasonable rent to the %lainti9s )%on s)ch terms an# con#itions that they may agree !n case o* #isagreement, the trial co)rt shall .; the terms thereo* O* co)rse, #e*en#ants may #emolish or remo,e the sai# %ortion o* their ho)se, at their o"n e;%ense, i* they so #eci#e &ecson v. Co'rt o4 .ppeals G.R. No. ""51"0, May 2%, "$$5, 200 SCR. 0/# 5avi(e, *r. *. FACTS: $e#ro $ecson o"ne# a commercial lot sit)ate# in Mamias street, K)eIon City, on "hich he b)ilt a a *o)r-#oor, t"o-storey a%artment b)il#ing ')t beca)se o* *ail)re to %ay realty ta;es amo)nting to $12,11111, the commercial lot o"ne# "as sol# at a %)blic a)ction !t "as %)rchase# by &e%om)ceno, "hich later sol# the same to the &)g)i# s%o)ses *or $113,111 on October 12, 19/3 $ecson then challenge# the sale, alleging that the a%artment b)il#ing, contrary to the claim o* the &)g)i# s%o)ses, "as not incl)#e# in the sale The lo"er co)rt 8)#ge# in *a,or o* $ecson, #eclaring that the a%artment b)il#ing "as in#ee# not incl)#e# in the s)b8ect sale The Co)rt o* A%%eals aErme# the same The S%o)ses &)g)i# then .le# a motion *or #eli,ery o* %ossession o* the lot an# the a%artment b)il#ing The lo"er co)rt r)le# in *a,or o* the %ri,ate res%on#ents, b)t s)b8ect to the reimb)rsement to $ecson o* the cost o* constr)cting the a%artment b)il#ing min)s the rents #)e to the s%o)ses <calc)late# at $21,111 *rom 2)ne 23, 1993 to Se%tember 23, 1993= 6ith the sai# #ecision at han#, the s%o)ses then ma#e a mo,e to e8ect $ecson an# as "ell as the tenants resi#ing therein 7o"e,er, the s%o)ses ha,e yet to %ay $ecson *or the constr)ction costs !SS45: 6hether the &)g)i# S%o)ses can e8ect $ecson e,en i* reimb)rsement hasnBt been gi,en *or the constr)ction costs 75+D: &o The Co)rt r)le# that since the s%o)ses still ha,enBt reimb)rse# $ecson *or the cost o* constr)ction o* the b)il#ing, the latter has the right to retain the %ro%erty, an# along "ith it, the *r)its o* "hich #)ring s)ch %ossession The co)rt r)le# that tho)gh Article ??/ #o not a%%ly in the case at bar 'y its clear lang)age, Article ??/ re*ers to a lan# "hose o"nershi% is claime# by t"o or more %arties, one o* "hom has b)ilt some "or(s, or so"n or %lante# something The b)il#ing, so"ing or %lanting may ha,e been ma#e in goo# *aith or in ba# *aith As in this case, since the o"ner himsel* "as the one "ho constr)cte# the im%ro,ement, goo# *aith an# ba# *aith becomes irrele,ant 7o"e,er, by analogy, the in#emnity may be a%%lie#, consi#ering that the %rimary intent o* $age 0 o* # Article ??/ is to a,oi# a state o* *orce# co- o"nershi% an# that the %arties agree that Articles ??/ an# 0?: o* the Ci,il Co#e are a%%licable an# in#emnity *or the im%ro,ements may be %ai#, altho)gh they #i9er as to the basis o* the in#emnity Since the s%o)ses ha,e o%te# to a%%ro%riate the a%artment b)il#ing, $ecson is th)s entitle# to the %ossession an# en8oyment o* the a%artment b)il#ing, )ntil he is %ai# the %ro%er in#emnity, as "ell as o* the %ortion o* the lot "here the b)il#ing has been constr)cte# This is so beca)se the right to retain the im%ro,ements "hile the corres%on#ing in#emnity is not %ai# im%lies the tenancy or %ossession in *act o* the lan# on "hich it is b)ilt, %lante# or so"n The %etitioner not ha,ing been so %ai#, he "as entitle# to retain o"nershi% o* the b)il#ing an#, necessarily, the income there*rom &aci7c 2ars Inc. v. 8sg'erra G.R. No. ,-2"#13, Nove!er 2$, "$%$, 3/ SCR. %10 Castro, *. FACTS: On October 1, 190: to March 2, 190F the Com%any sol# an# #eli,ere# l)mber an# constr)ction materials to the !ns)lar Farms !nc "hich the latter )se# in the constr)ction o* the si b)il#ings at its com%o)n# in 'olinao, $angasinan, o* the total %roc)rement %rice o* $10,11111, the s)m o* $?,F111/ has not been %ai# Conse-)ently, the Com%any instit)te# a ci,il case to reco,er the )n%ai# balance an# the co)rt s)staine# their claim The #e*en#ant sheri9 le,ie# th si; b)il#ings The $aci.c Farms, !nc .le# a s)it against the Com%any an# the sheri9 asserting o"nershi% o,er the le,ie# b)il#ings "hich it ha# ac-)ire# *rom the !ns)lar Farms by ,irt)e o* absol)te sale e;ec)te# on March 21, 190/ $aci.c %rays that the 8)#icial sale o* the si; b)il#ings be #eclare# n)ll an# ,oi# The trial co)rt ren#ere# 8)#gment ann)lling the le,y an# the certi.cate o* sale 7o"e,er, it #enie# the %lainti93s claim *or act)al an# e;em%lary #amages on the gro)n# that it "as not N%re%are# to .n# there "as gross negligence or ba# *aith on the %art o* any #e*en#antsN !SS45: 6hether or not the a%%lication by analogy o* the r)les o* accession "o)l# s)Ece *or a 8)st a#8)#ication 75+D: Article ??F o* the Ci,il Co#e contem%lates a %rinci%al an# an accessory> the lan# being consi#ere# the %rinci%al, an# the %lantings, constr)ctions or "or(s, the accessory The o"ner o* the lan# "ho in goo# *aith - "hether %ersonally or thro)gh another - ma(es constr)ctions or "or(s thereon, )sing materials belonging to somebo#y else, becomes the o"ner o* the sai# materials "ith the obligation ho"e,er o* %aying *or their ,al)e On the other han#, the o"ner o* the materials is entitle# to remo,e them, %ro,i#e# no s)bstantial in8)ry is ca)se# to the lan#o"ner Other"ise, he has the right to reimb)rsement *or the ,al)e o* his materials A%%lying article ??F by analogy, the Co)rt consi#er the b)il#ings as the %rinci%al an# the l)mber an# constr)ction materials that "ent into their constr)ction as the accessory Th)s the a%%ellee, i* it #oes o"n the si; b)il#ings, m)st bear the obligation to %ay *or the ,al)es o* the sai# materials> the a%%ellant O "hich a%%arently has no #esire to remo,e the materials, an#, e,en i* it "ere min#e# to #o so, cannot remo,e them "itho)t necessarily #amaging the b)il#ings O has the corres%on#ing right to reco,er the ,al)e o* the )n%ai# l)mber an# constr)ction materials Technogas &hilippines Man'4act'ring Corporation v. Co'rt o4 .ppealsG.R. No. "/11$0, 2e!r'ary, "/, "$$#, 2%1 SCR. 5 &angani!an, *. FACTS: Technogas %)rchase# a %arcel o* lan# *rom $ariI !n#)stries, !nc !n the same year, 5#)ar#o 4y %)rchase# the lan# a#8acent to it The *ollo"ing year, 4y bo)ght another lot a#8oining the lot o* Technogas $ortions o* the b)il#ings an# "all bo)ght by Technogas together "ith the lan# *rom $ariI !n#)stries are occ)%ying a %ortion o* 4yBs a#8oining lan# The (no"le#ge o* some encroachment "as only ma#e (no"n to both %arties a*ter their %arties o* their res%ecti,e %arcels o* lan# !SS45S: 1=6hether or not %etitioner Technogas $hili%%ines is a %ossessor in ba# *aith 2=6hether or not %etitioner Technogas $hili%%ines has ste%%e# into the shoes o* the seller 75+D: 1= &o 4nless one is ,erse# in the science o* s)r,eying, no one can #etermine the %recise e;tent or location o* his %ro%erty by merely e;amining his %a%er title There is no -)estion in that "hen Technogas %)rchase# the lan# *rom $ariI !n#)stries, the b)il#ings an# other str)ct)res "ere alrea#y in e;istence F)rthermore, it is not clear as to "ho act)ally b)ilt these str)ct)res b)t it can be ass)me# that the %re#ecessor-in-interest o* Technogas, $ariI !n#)stries, #i# so An article 02F o* the &e" Ci,il Co#e %res)mes goo# *aith Since no %roo* e;ists to sho" that the b)il#er b)ilt the encroaching str)ct)res in ba# *aith, the str)ct)res sho)l# be %res)me# to ha,e been b)ilt in goo# *aith Goo# *aith consists in the belie* o* the b)il#er that the lan# he is b)il#ing on is his, an# his ignorance o* any #e*ect or Pa" in his title F)rthermore, %ossession ac-)ire# in goo# *aith #oes not lose this character e;ce%t in case an# *rom the moment *acts e;ist "hich sho" that the %ossessor is not a"are that he %ossesses the thing im%ro%erly or "rong*)lly The goo# *aith ceases *rom the moment the #e*ects in the title are ma#e (no"n to the %ossessor, by e;traneo)s e,i#ence or by s)it *or reco,ery o* the %ro%erty o* the tr)e o"ner 2= @es 7as been sho"n, contrary as to the goo# *aith o* Technogas has not been o,erthro"n Similarly, )%on #eli,ery o* the %ro%erty to $ariI !n#)stries, as seller, to Technogas, as b)yer, the latter ac-)ire# o"nershi% o* the %ro%erty Conse-)ently, Technogas is #eeme# to ha,e ste%%e# into the shoes o* the seller "ith regar# to all the rights o* o"nershi% o* the %ro%erty o,er the immo,able sol#, incl)#ing the right to com%el 4y to e;ercise either o* the t"o o%tions )n#er Article ??/ o* the &e" Ci,il Co#e Th)s, the lan#o"nerBs e;ercise o* his o%tion can only ta(e %lace a*ter the b)il#er shall ha,e to (no" the intr)sion L in short, "hen both %arties shall ha,e become a"are o* it Only then "ill the occasion *or e;ercising the o%tion arise, *or it is only then that both %arties "ill ha,e been a"are that a %roblem e;ists "ith regar# to their %ro%erty rights $age 5 o* # Geriniano v. Co'rt o4 .ppeals G.R. No. "2/3/3, *'ly 20, "$$%, 25$ SCR. 300 5avi(e, *r., *. FACTS: This is a %etition *or re,ie" on certiorari "hich has its origins in Ci,il Case &o 921? o* 'ranch 3 o* the M)nici%al Trial Co)rt in Cities <MTCC= in Dag)%an City *or )nla"*)l #etainer an# #amages D)ring the %re-trial con*erence, the %arties agree# to con.ne the iss)es to: <1= "hether there "as an im%lie# rene"al o* the lease "hich e;%ire# in &o,ember 19/0> <2= "hether the lessees "ere b)il#ers in goo# *aith an# entitle# to reimb)rsement o* the ,al)e o* the ho)se an# im%ro,ements> an# <3= the ,al)e o* the ho)se On the .rst iss)e, the co)rt hel# that since the %etitioners3 mother "as no longer the o"ner o* the lot in -)estion at the time the lease contract "as e;ec)te# in 19F/, in ,ie" o* its ac-)isition by Maria +ee as early as 19F2, there "as no lease to s%ea( o*, m)ch less, a rene"al thereo* An# e,en i* the lease legally e;iste#, its im%lie# rene"al "as not *or the %erio# sti%)late# in the original contract, b)t only on a month-to-month basis %)rs)ant to Article 1:/F o* the Ci,il Co#e The re*)sal o* the %etitioners3 mother to acce%t the rentals starting 2an)ary 19/: "as then a clear in#ication o* her #esire to terminate the monthly lease As regar# the %etitioners3 allege# *aile# %romise to sell to the %ri,ate res%on#ents the lot occ)%ie# by the ho)se, the co)rt hel# that s)ch sho)l# be litigate# in a %ro%er case be*ore the %ro%er *or)m, not an e8ectment case "here the only iss)e "as %hysical %ossession o* the %ro%erty The co)rt resol,e# the secon# iss)e in the negati,e, hol#ing that Articles ??/ an# 0?: o* the Ci,il Co#e, "hich allo" %ossessors in goo# *aith to reco,er the ,al)e o* im%ro,ements an# retain the %remises )ntil reimb)rse#, #i# not a%%ly to lessees li(e the %ri,ate res%on#ents, beca)se the latter (ne" that their occ)%ation o* the %remises "o)l# contin)e only #)ring the li*e o* the lease 'esi#es, the rights o* the %ri,ate res%on#ents "ere s%eci.cally go,erne# by Article 1:F/, "hich allo" reimb)rsement o* )% to one-hal* o* the ,al)e o* the )se*)l im%ro,ements, or remo,al o* the im%ro,ements sho)l# the lessor re*)se to reimb)rse On the thir# iss)e, the co)rt #eeme# as concl)si,e the %ri,ate res%on#ents3 allegation that the ,al)e o* the ho)se an# im%ro,ements "as $1/1,11111, there being no contro,erting e,i#ence %resente# On a%%eal by the %ri,ate res%on#ents, the ATC o* Dag)%an City re,erse# the trial co)rt3s #ecision !SS45: 6hether or not Article ??/ or Article 1:F/ o* the Ci,il Co#e sho)l# a%%ly in the instant case 75+D: !n this case, both %arties a#mit that the lan# in -)estion "as originally o"ne# by the %etitioners3 mother The lan# "as allege#ly ac-)ire# later by one Maria +ee by ,irt)e o* an e;tra8)#icial *oreclos)re o* mortgage +ee, ho"e,er, ne,er so)ght a "rit o* %ossession in or#er that she gain %ossession o* the %ro%erty in -)estion The %etitioners3 mother there*ore remaine# in %ossession o* the lot !t has been sai# that "hile the right to let %ro%erty is an inci#ent o* title an# %ossession, a %erson may be lessor an# occ)%y the %osition o* a lan#lor# to the tenant altho)gh he is not the o"ner o* the %remises let There is no nee# to a%%ly by analogy the %ro,isions o* Article ??/ on in#emnity as "as #one in $ecson ,s Co)rt o* A%%eals,beca)se the sit)ation so)ght to be a,oi#e# an# "hich "o)l# 8)sti*y the a%%lication o* that %ro,ision, is not %resent in this case S)Ece it to say, Na state o* *orce# co-o"nershi%N "o)l# not be create# bet"een the %etitioners an# the %ri,ate res%on#ents For, as correctly %ointe# o)t by the %etitioners, the right o* the %ri,ate res%on#ents as lessees is go,erne# by Article 1:F/ o* the Ci,il Co#e "hich allo"s reimb)rsement to the e;tent o* one-hal* o* the ,al)e o* the )se*)l im%ro,ements!t m)st be stresse#, ho"e,er, that the right to in#emnity )n#er Article 1:F/ o* the Ci,il Co#e arises only i* the lessor o%ts to a%%ro%riate the im%ro,ements Since the %etitioners re*)se# to e;ercise that o%tion the %ri,ate res%on#ents cannot com%el them to reimb)rse the one-hal* ,al)e o* the ho)se an# im%ro,ements &either can they retain the %remises )ntil reimb)rsement is ma#e The %ri,ate res%on#ents3 sole right then is to remo,e the im%ro,ements "itho)t ca)sing any more im%airment )%on the %ro%erty lease# than is necessary &ershing Tan 9'eto v. Co'rt o4 .ppeals G.R. No. ,-35%01, March 2#, "$1#, "01 SCR. 50 &aras, *. FACTS: 7erein %ri,ate res%on#ent Aestit)ta Tacalinar G)angco #e $omb)ena recei,e# the -)estione# lot *rom her mother 'asili#es Tacalinar either as a %)r%orte# #onation or by "ay o* %)rchase "ith $01 as the allege# consi#eration thereo* The #onation or sale "as cons)mmate# "hile Aestit)ta "as alrea#y marrie# to her h)sban# 2)an $omb)ena 2)an then .le# *or himsel* an# his s)%%ose# co-o"ner Aesitit)ta an a%%lication *or a Torrens Title o,er the lan# "hich "as later on grante# %rono)ncing him <Qmarrie# to Aesiti)taB= as the o"ner o* the lan# A contract o* lease o,er the lot "as entere# into bet"een %etitioner, $ershing Tan K)eto an# Aestit)ta "ith the consent o* her h)sban# *or a %erio# o* 11 years The lease o* contract ha,ing e;%ire#, Aestit)ta .le# *or )nla"*)l #etainer against Tan K)eto The )nla"*)l #etainer case "as "on by the s%o)ses in the M)nici%al Co)rt b)t on a%%eal in the CF! the entire case "as #ismisse# beca)se o* a barter agreement "hereby Tan K)eto became the o"ner o* the #is%)te# lot an# the s%o)ses became the o"ners o* a %arcel o* lan# "ith the ho)se thereon %re,io)sly o"ne# be*ore the barter by Tan K)eto A*ter the barter agreement, Tan K)eto constr)cte# on the #is%)te# lan# a concrete b)il#ing "itho)t any ob8ection *rom Aestit)ta A*ter"ar#s Aestit)ta s)e# both 2)an an# Tan K)eto *or recon,eyance o* the title o,er the registere# b)t #is%)te# lot, *or ann)lment o* the barter, an# *or reco,ery o* the lan# "ith #amages The res%on#ent co)rtBs #ecision "hich later on "as aErme# by the S)%reme co)rt le# to the re*ormation o* the Contract o* Sale o* the #is%)te# lot *rom 'asili#es to Aestit)ta *rom a sale to a con,eyance o* the share o* Aestit)ta in the *)t)re here#itary estate o* her %arents 7ence, this %etition *or a motion*or reconsi#eration !SS45: 6hether or not the con,eyance o* the share o* Aestit)ta in the *)t)re here#itary estate o* her %arents "as ,ali# hence a %ara%hernal %ro%erty 75+D: &o The co)rt r)le# that the lan# is con8)gal, not %ara%hernal The oral #onation o* the lot cannot be a ,ali# #onation inter,i,os beca)se it "as not e;ec)te# in a %)blic instr)ment <Art F?9, Ci,il Co#e=, nor as a ,ali# #onation mortis ca)sa *or the *ormalities o* a "ill "ere not com%lie# "ith The allegation that the trans*er "as a con,eyance to A5ST!T4TA o* her here#itary share in the estate o* her mother <or %arents= cannot be s)staine# *or the contract)al transmission o* *)t)re inheritance is generally %rohibite# $age % o* # The *act is o"nershi% "as ac-)ire# by both 24A& an# A5ST!T4TA by tra#ition <#eli,ery= as a conse-)ence o* the contract o* sale <See Art F12, Ci,il Co#e= "ith $0111 <then a consi#erable amo)nt= as the ca)se or consi#eration o* the transaction The lot is there*ore con8)gal, ha,ing been ac-)ire# by the s%o)ses thr) onero)s title <the money )se# being %res)mably con8)gal there being no %roo* that A5ST!T4TA ha# %ara%hernal *)n#s o* her o"n= $age # o* #