National Housing Authority vs

Court of Appeals, et.al.

G.R. No. 148830; April 13, 2005
Public Land

MENDOZA, ANNE CYRILLE C.

 ISSUE

Whether or not the MSBF has the

right to determine the subject 7-
hectare portion of land

NHA vs CA, BGC & MSBF

 RULES
ART. 605:
Usufruct cannot be constituted in favor
of a town, corporation, or association
for more than fifty years. If it has been
constituted, and before the expiration
of such period the town is abandoned,
or the corporation or association is
dissolved, the usufruct shall be
extinguished by reason thereof.
ART. 565:
The rights and obligations
of the usufructuary shall
be those provided in the
title constituting the
usufruct; in default of such
title, or in case it is
deficient, the provisions
contained in the two
following Chapters shall be
observed.
NHA vs CA, BGC & MSBF
 ANALYSIS
Proc. No. 481 Proc. No. 1670
Reserved property
for NGC: 120-hectare
portion of land in
Quezon City owned
by NHA
October 24, 1968
Memo. No. 127
Removed reserved
status of 50 hectares
of land remaining out
Removed 7-hectare of the 120 hectares
from the portion
coverage of NGC; Authorized the NHA to commercialize
Usufructuary rights the area and sell it to public
given to MSBF
September 19, 1977 November 11, 1987

MSBF occupied the area but years later, Leased

exceeded the 7-hectare and occupied 4,590 sq.m
approximately 16-hectares to BGC

NHA vs CA, BGC & MSBF

 ANALYSIS
NATIONAL HOUSING AUTHORITY CA, BGC and MBSF

• MSBF failed to act seasonably in
exercising its right to conduct the
survey
• MSBF’s surveys covered 16-
hectare area; inappropriate to
determine the 7-hectare area
• NHA’s survey shows that BGC
occupied a portion outside of the
7-hectare area covered by MSBF’s
usufructuary rights
• MSBF did in fact assert its right to
conduct the survey and erecting
its main structures in the area of
its choice
• MSBF’s survey shows that BGC’s
stall is within the 7-hectare area
 APPLICATION
Art. 565: The rights and obligations of
the usufructuary shall be those
provided in the title constituting the
usufruct. xxx
 In this case, Proc.No.1670 is the title
constituting the usufruct. It categorically
states that the 7-hectare area shall be
determined “by future survey under the
administration of the Foundation subject
to private rights if there be any.”
 However, the 7-hectare portion of MSBF is
no longer easily determinable considering
that varied structures erected within and
surrounding the area.
 Hence, there's a need for a NEW SURVEY
to be conducted jointly by NHA and MSBF.
ART. 605. Usufruct cannot be
constituted in favor of a town,
corporation, or association for more
than fifty years. xxx
 The law clearly limits any usufruct
constituted in favor of a corporation or
association to 50 years.
 Unlike a natural person, a corporation or
association’s lifetime may be extended
indefinitely. The usufruct would then be
perpetual. This is especially invidious in
cases where the usufruct given to a
corporation or association covers public
land.
 Proc. No. 1670 was issued on Sept.19,1977
(28 years ago)
 Hence, under Article 605, the usufruct in
favor of MSBF has 22 years left.