CREDIT TRANSACTION CASE DIGEST/ CATHOLIC VICAR APOSTOLIC VS. COURT OF APPEALS/ G. R. NO.80294-95/ 21 SEPTEMBER 1988/ 165 SCRA 515

CREDIT TRANSACTION CASE DIGEST
CATHOLIC VICAR APOSTOLIC VS. COURT OF APPEALS
G. R. NO.80294-95, 21 SEPTEMBER 1988, 165 SCRA 515

TOPIC/DOCTRINE

When petitioner borrowed the house of private respondents’ predecessors and petitioner was allowed its free use, private respondents became bailors in commodatum, and petitioner, the bailee.

FACTS

Private respondents were able to prove that their predecessors’ house was borrowed by petitioner Vicar after the church and the convent were destroyed. They never asked for the return of the house, but when they allowed its free use.

The adverse claim of petitioner came only in 1951 when it declared the lots for taxation purposes. The action of petitioner Vicar by such adverse claim could not ripen into the title by way of ordinary acquisitive prescription because of the absence of just title.

ISSUE

Whether bailees’ failure to return the subject matter of commodatum to the bailor mean adverse possession on the part of the borrower.

RULING

The court held in the negative.

          The court held that the bailees’ failure to return the subject matter of commodatum to the bailor did not mean adverse possession on the part of the borrower. The bailee held in trust the property subject matter of commodatum.

Here, the court held that when private respondents never asked for the return of the house, but when they allowed its free use, they became bailors in commodatum and the petitioner the bailee.

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