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NUGUID vs CA
It is not disputed that the construction of the 4-door 2-storey apartment, subject of this dispute, was
undertaken at the time when Pecson was still the owner of the lot. When the Nuguids became the
uncontested owner of the lot, by virtue of entry of judgment of the Courts decision, the apartment building
was already in existence and occupied by tenants.
Under Article 448, the landowner is given the option, either to appropriate the improvement as his own
upon payment of the proper amount of indemnity or to sell the land to the possessor in good faith.
Relatedly, Article 546 provides that a builder in good faith is entitled to full reimbursement for all the
necessary and useful expenses incurred; it also gives him right of retention until full reimbursement is
made. As we earlier held, since petitioners opted to appropriate the improvement for themselves as early
as June 1993, when they applied for a writ of execution despite knowledge that the auction sale did not
include the apartment building, they could not benefit from the lots improvement, until they reimbursed
the improver in full, based on the current market value of the property.
Despite the Courts recognition of Pecsons right of ownership over the apartment building, the petitioners
still insisted on dispossessing Pecson by filing for a Writ of Possession to cover both the lot and the
building. Clearly, this resulted in a violation of respondents right of retention. Worse, petitioners took
advantage of the situation to benefit from the highly valued, income-yielding, four-unit apartment building
by collecting rentals thereon, before they paid for the cost of the apartment building. It was only 4 years
later that they finally paid its full value to the respondent.
Given the circumstances of the instant case where the builder in good faith has been clearly denied his
right of retention for almost half a decade, we find that the increased award of rentals by the RTC was
reasonable and equitable. The petitioners had reaped all the benefits from the improvement introduced by
the respondent during said period, without paying any amount to the latter as reimbursement for his
construction costs and expenses. They should account and pay for such benefits.
The Court need not belabor now the appellate courts recognition of herein respondents entitlement to
rentals from the date of the determination of the current market value until its full payment. Respondent is
clearly entitled to payment by virtue of his right of retention over the said improvement.
64. GERMINIANO, et al vs CA
T h e p r i v a t e r e s p o n d e n t s c l a i m t h e y a r e builders in good faith, hence, Article 448 of
the Civil Code should apply. They rely on the lack of title of the petitioners' mother at the time of
the execution of t h e c o n t r a c t o f l e a s e , a s w e l l a s t h e a l l e g e d a s s u r a n c e
m a d e b y t h e p e t i t i o n e r s t h a t t h e l o t o n which the house stood would be sold to
them.B u t b e i n g m e r e l e s s e e s , t h e p r i v a t e r e s p o n d e n t s k n e w t h a t t h e i r o c c u p a t i o n o
f t h e p r e m i s e s w o u l d continue only for the life of the lease. Plainly, they cannot be
considered as possessors nor builders in good faith. Article 448 of the Civil Code, in relation
to A r t i c l e 5 4 6 o f t h e s a m e C o d e , w h i c h a l l o w s f u l l reimbursement of useful
improvements and retention of the premises until reimbursement is made, applies only to a possessor in
good faith, i.e., one who builds on land with the belief that he is the owner thereof. It does not apply
where one's only interest is that of a lessee under a rental contract; otherwise, it would
always be in the power of the tenant to "improve" his landlord out of his property. And even if the
petitioners indeed promised to sell, it would not make the private respondents p o s s e s s o r s o r
b u i l d e r s i n g o o d f a i t h s o a s t o b e covered by the provisions of Article 448 of the Civil
Code. The latter cannot raise the mere expectancy of ownership of the aforementioned lot
because the a l l e g e d p r o m i s e t o s e l l w a s n o t f u l f i l l e d n o r i t s existence even
proven.
b. Owner in good faith has the option to either (i) pay for the building OR (ii) sell his land to the builder in
good faith but builder cannot be forced to buy said land if the same is considerably more than the value of
the building.
Forced rent only comes in if the owner exercises his right to sell the land but the builder rejects it by
reason of the price thereof being considerably more than the value of the building in such case, the
parties shall agree to the terms of the lease, if they cant agree then they may bring the issue to court.
2. The action for quieting of title is not barred by reason of res judicata. The cause of action in the
unlawful detainer case involves possession while the cause of action in the quieting of title case involves
ownership. Furthermore, the Rules of Court explicitly provides that judgment in a detainer case shall not
bar an action between the same parties respecting title to the land.
Accretion benefits the riparian owner because these lands are exposed to floods and other damage due
to the destructive force of the waters, and if by virtue of law they are subject to encumbrances and various
kinds of easements, it is only just that such risks or dangers should in some way be compensated by the
right of accretion. Also, respondents ownership over said lots was not removed when due to the sudden
and abrupt change in the course of the river; their accretions were transferred to the other side. Art. 459
states when the current of a river x x x segregates from an estate on its bank a known portion of land and
transfers it to another estate, the owner of segregated portion retains ownership provided he removes the
same w/in 2 years. And Art. 463 states that whenever the current of a river divides itself into branches,
leaving a piece of land or part thereof isolated, the owner of the land retains ownership. He also retains it
if a portion of land is separated from the estate by the current.
70. VIAJAR vs CA
It was established in the trial that for a period of 40 years the Suague river overflowed its banks yearly
and the property of the defendant gradually received deposits of soil from the effects of the current of the
river.
It is a well settled rule that registration under the Torrens System does not protect the riparian owner
against the diminution of the area of his registered land through gradual changes in the course of an
adjoining stream or river. Accretions which the banks of the river may gradually receive from the effect of
the current become the property of the owners of the banks.
71. REYNANTE vs CA
While it is true that alluvial deposits shall belong to the owner of the lot adjoining such accretion, it does
not automatically bestow an imprescriptibility. If the owners of said land have not registered this with the
proper entity, said land will be subject to acquisition by prescription, which was what occurred in this case.
Since the affidavits prove that Reynante has been in possession of these lands for more than 50 years,
the SC rightly held that the land belongs to him.
72. REPUBLIC vs CA
Private oppositors-petitioners failed to show proper authority for the alleged reclamation, therefore, their
claimed title to the litigated parcel must fall. In the second place, their alleged possession can never ripen
into ownership. Only possession acquired and enjoyed in the concept of owner can serve as the root of a
title acquired by prescription. As correctly found by the appellate court, the private oppositors-petitioners
entered into possession of the land with the permission of, and as tenants of, the applicant del Rio. The
fact that some of them at one time or another did not pay rent cannot be considered in their favor. Their
use of the land and their non-payment of rents thereon were merely tolerated by applicant and these
could not have affected the character of the latter's possession which has already ripened into ownership
at the time of the filing of this application for registration.
The applicant private-respondent having satisfactorily established his registerable title over the parcel of
land described in his application, he is clearly entitled to the registration in his favor of said land.
adjoining the banks of rivers or streams any accretion gradually received from the effects of the current of
waters.
For petitioners to insist on the application of these rules on alluvion to their case, the abovementioned requisites must be present. However, they admit that the accretion was formed by the dumping
of boulders, soil and other filling materials on portions of the Balacanas Creek and the Cagayan River
bounding their land.[3] It cannot be claimed, therefore, that the accumulation of such boulders, soil and
other filling materials was gradual and imperceptible, resulting from the action of the waters or the current
of the Balacanas Creek and the Cagayan River. In Hilario v. City of Manila,[4] this Court held that the word
"current" indicates the participation of the body of water in the ebb and flow of waters due to high and low
tide. Petitioners' submission not having met the first and second requirements of the rules on alluvion,
they cannot claim the rights of a riparian owner.
(defendant) from being the owner thereof. Registration does not protect the riparian owner against the
diminution of the area of his land through gradual changes in the course of the adjoining stream.
Accretions which the banks of rivers may gradually receive from the effect of the current become the
property of the owners of the banks. (Art. 366 of the old Civil Code; art. 457 of the new.) Such accretions
are natural incidents to land bordering on running streams and the provisions of the Civil Code in that
respect are not affected by the Land Registration Act.
adjectives perpetuas and vitalicias. The civil fruits the Civil Code understands one of three and only
three things, to wit: the rent of a building, the rent of land, and certain kinds of income.
Bonus not a civil fruit; not an income of the land
The amount of the bonus, according to the resolution of the central granting it, is not based upon the
value, importance or any other circumstance of the mortgaged property, but upon the total value of the
debt thereby secured, according to the annual balance, which is something quite distinct from and
independent of the property referred to. As the bonus is not obtained from the land, it is not civil fruits of
that land. It is neither rent of buildings, proceeds from lease of lands, or income under Article 355 of the
Civil Code.
What applies in this case is Art. 1678 (NCC) which provides that, " if the lessee, makes, in good faith,
useful improvements which are suitable to the use for which the lease is intended, without altering the
form or substance of the property leased, the lessor upon the termination of the lease shall pay the lessee
1/2 of the value of the improvements at the time. Should the lessor refuse to reimburse said amount, the
lessee may remove the improvements even though the principal thing may suffer damage thereby. He
shall not. however, cause any more impairment upon the property leased than is necessary."
The plaintiff or complainant has a legal or an equitable title to or interest in the real property
subject of action; and
2. The deed, claim, encumbrance or proceeding claimed to be casting cloud on his title must be
shown in fact invalid or inoperative despite it prima facie appearance of validity or legal efficacy.
Stated simply, the plaintiff must show that he has a legal title or at least an equitable title over the real
property in dispute, and that some deed or proceeding beclouds its validity or efficacy.
Unfortunately, the foregoing requisites are wanting in this case. Lucasan admitted that he failed to redeem
the property during the redemption period, on account of his ten limited financial situation. It was only 15
years later that he manifested his desire to reacquire the properties. Clearly thus, he had lost whatever
right ha had over the lots.
The payment of loans made by Lucasan cannot in any way operate to restore whatever right he had over
the subject properties. Such payment only extinguished his loan obligations to the mortgagee banks and
the liens which Lucasan claimed were subsisting at the time of the registration of the notice of embargo
and certification of sale.
Neither can Lucasan capitalize on PBC's failure to file a petition for consolidation of ownership after the
expiration of the redemption period. with the rule that the expiration of the 1-year redemption period
forecloses the obligor's right to redeem ans that the sale thereby becomes absolute, the issuance
thereafter of a final deed of sale is at best a mere formality and mere confirmation of the title that is
already vested in the purchaser.
Certainly, Lucasan no longer possess any legal or equitable title to or interest over the subject parcels of
land; hence, he cannot validly maintain an action for quieting of title.
alleged ownership over the subject property. Thus, it is clear that the issue of possession is connected
with that of ownership and, therefore, respondent CFI Judge Adil rightfully enjoined the Municipal Circuit
Court of Estancia, Iloilo from proceeding with the trial of the ejectment controversy in Civil Case No. 2133C. Besides, the respondent court could also grant the relief sought by petitioner by issuing a writ of
preliminary mandatory injunction ousting private respondent from the property and placing him in
possession thereof.
It is true that petitioners have filed with the sheriff an opposition protesting against the order placing
Paulino Acosta in possession of the land, but the same came late, and so it was properly disregarded by
the sheriff. This protest is a clear proof that Acosta was really in possession of the land when this case
was started by petitioners. Considering that Justo Balbecino averred in the affidavit he attached to his
motion for reconsideration that he is the absolute owner of the land and that after all his hope to regain it
has vanished petitioners, who are his brothers and sisters, commenced the present action, there is
reason to believe that the same is but an eleventh hour attempt to circumvent the decision rendered in
Civil Case No. 758. This is enough reason that justifies the action taken by the court a quo.
85. SALVADOR vs CA
This Court has held that the possession of a co-owner is like that of a trustee and shall not be regarded
as adverse to the other co-owners but in fact as beneficial to all of them. 31 Acts which may be considered
adverse to strangers may not be considered adverse insofar as co-owners are concerned. A mere silent
possession by a co-owner, his receipt of rents, fruits or profits from the property, the erection of buildings
and fences and the planting of trees thereon, and the payment of land taxes, cannot serve as proof of
exclusive ownership, if it is not borne out by clear and convincing evidence that he exercised acts of
possession which unequivocably constituted an ouster or deprivation of the rights of the other coowners. 32
Thus, in order that a co-owner's possession may be deemed adverse to the cestui que trust or the other
co-owners, the following elements must concur: (1) that he has performed unequivocal acts of repudiation
amounting to an ouster of the cestui que trust or the other co-owners; (2) that such positive acts of
repudiation have been made known to the cestui que trust or the other co-owners; and (3) that the
evidence thereon must be clear and convincing.
The Court ruled that the spouses are not liable to pay rent. Their occupation of the said property was a
mere exercise of their right to use the same as a co-owner. One of the limitations on a co-owners right of
use is that he must use it in such a way so as not to injure the interest of the other co-owners. In the case
at bar, the other party failed to provide proof that by the occupation of the spouses Bartolome, they
prevented Vicenta from utilizing the same