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MALCOLM, J.:
The issue in this case, as announced in the opening
sentence of the decision in the trial court and as set forth
by counsel for the parties on appeal, involves the
determination of the nature of the properties described in
the complaint. The trial judge found that those properties
were personal in nature, and as a consequence absolved the
defendants from the complaint, with costs against the
plaintiff.
The Davao Saw Mill Co., Inc., is the holder of a lumber
concession from the Government of the Philippine Islands.
It has operated a sawmill in the sitio of Maa, barrio of
Tigatu, municipality of Davao, Province of Davao.
However, the land upon which the business was conducted
belonged to another person. On the land the sawmill
company erected a building which housed the machinery
used by it. Some of the implements thus used were clearly
personal property, the conflict concerning machines which
were placed' and mounted on f oundations of cement. In the
contract of lease between the sawmill company and the
owner of the land there appeared the following provision:
"That on the expiration of the period agreed upon, all
the improvements and buildings introduced and erected by
the party of the second part shall pass to the exclusive
ownership of the party of the first part without any
obligation on its part to pay any amount for said
improvements and buildings; also, in the event the party of
the second part should leave or abandon the land leased
before the time herein stipulated, the improvements and
buildings shall likewise pass to the ownership of the party
of the first part as
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711
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712
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714
the lease under which the Altagracia held, since the lease
in substance required the putting in of improved
machinery, deprived the tenant of any right to charge
against the lessor the cost of such machinery, and it was
expressly stipulated that the machinery so put in should
become a part of the plant belonging to the owner without
compensation to the lessee. Under such conditions the
tenant in putting in the machinery was acting but as the
agent of the owner in compliance with the obligations
resting upon him, and the immobilization of the machinery
which resulted arose in legal effect from the act of the
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