2.

Adam, a building contractor, was engaged by Blas to construct a house on a lot which he (Blas)
owns. While digging on the lot in order to lay down the foundation of the house, Adam hit a very
hard object. It turned out to be the vault of the old Banco de las Islas Filipinas. Using a detonation
device, Adam was able to open the vault containing old notes and coins which were in circulation
during the Spanish era. While the notes and coins are no longer legal tender, they were valued at
P 100 million because of their historical value and the coins’ silver and nickel content. The
following filed legal claims over the notes and coins: (a) Adam, as finder; (b) Blas, as owner of
the property where they were found; (c) Bank of the Philippine Islands, as successor-in-interest of
the owner of the vault; and (d) The Philippine Government because of their historical value. Who
owns the notes and coins? Explain.

UP SUGGESTED ANSWER AS COMPILED BY RECOLETOS LAW CENTER (2008

BAR QUESTION)

The notes and coins are no longer owned by the Bank of the Philippine Islands, which has either
lost or abandoned the vault and its contents, and it has not taken any effort to search, locate or
recover the vault. In any case, since the vault is in actual possession of Adam, BPI may attempt,
in a judicial action to recover, to rebut the presumption of ownership in favor of Adam and Blas
(Art. 433, Civil Code). Hidden treasure is any hidden and unknown deposit of money, jewelry, or
other precious objects, the lawful ownership of which does not appear.
Given the age and importance of the items found, it would be safe to consider the vault, notes and
coins abandoned by BPI and its predecessor (Art. 439, Civil Code). It belongs to the owner of the
land on which it is found. When the discovery is made on the property of another, or of the State
and by chance, one-half of it shall belong to the finder who is not a trespasser (Art. 438, Civil
Code).
In the present case, Adam, as finder, and Blas, as owner of the land, are entitled to share 50-50 in
the treasure. The government can only claim if it can establish that the notes and coins are of
interest to science or the arts, then it must pay just price of the things found, to be divided equally
between Adam and Blas (Art. 438, Civil Code).