LAW ON PROPERTY | METROPOLITAN WATERWORKS AND SEWERAGE SYSTEM VS. COURT OF APPEALS, G.R. NO. L-54526, AUGUST 25, 1988.

METROPOLITAN WATERWORKS AND SEWERAGE SYSTEM VS. COURT OF APPEALS, 

G.R. NO. L-54526, AUGUST 25, 1988. 

 

TOPIC/DOCTRINE

Article 449 of the Civil Code of the Philippines provides that “he who builds, plants or sows in bad faith on the land of another, loses what is built, planted or sown without right to indemnity.” The right given a possessor in bad faith is to remove improvements applies only to improvements for pure luxury or mere pleasure, provided the thing suffers no injury thereby and the lawful possessor does not prefer to retain them by paying the value they may have at the time he enters into possession (Article 549, Id.).

 

FACTS 

The City of Dagupan (City) filed a case for recovery of ownership, possession and control of the Dagupan Waterworks System (DWS) against National Waterworks and Sewerage Authority (NAWASA) now known as Metropolitan Waterworks and  Sewerage System (MWSS). 

In NAWASA’s counterclaim: 1) it assailed that it is entitled to the expenses and improvements it provided for DWS, and 2) Under R.A. 1383 it is entitled to have control to all national waterworks systems in the Philippines. 

The lower court ruled in favor of the City. On appeal, the Court of Appeals ruled in favor of the City citing that NAWASA is in bad faith and therefore not entitled to any monetary claim under the law.

 

ISSUE 

Can MWSS be entitled to the improvements that its former personality (NAWASA) has introduced to the DWS despite the fact that it was found out in bad faith.

RULING 

No.

The court ruled that Article 449 of the Civil Code of the Philippines provides that “he who builds, plants or sows in bad faith on the land of another, loses what is built, planted or sown without right to indemnity.” Rights of a possessor in good faith and a possessor in bad faith—Moreover, under Article 546 of said code, only a possessor in good faith shall be refunded for useful expenses with the right of retention until reimbursed; and under Article 547 thereof, only a possessor in good faith may remove useful improvements if this can be done  without damage to the principal thing and if the person who recovers the possession  does not exercise the option of reimbursing the useful expenses. The right given a possessor in bad faith is to remove improvements applies only to improvements for pure luxury or mere pleasure, provided the thing suffers no injury thereby and the lawful possessor does not prefer to retain them by paying the value they may have at the time he enters into possession (Article 549, Id.).

Here, the court ruled that as a builder in bad faith, NAWASA lost whatever useful improvements it had made without right to indemnity (Santos vs. Mojida, Jan. 31, 1969, 26 SCRA 703).







Popular posts from this blog

CRIMINAL LAW II CASE DIGEST/ BACLAYON V. MUTIA, 129 SCRA 148

BACLAYON V. MUTIA, 129 SCRA 148 TOPIC/DOCTRINE Conditions should be interpreted with flexibility in their application and each case should be judged on its own merits—on the basis of the problems, needs and capacity of the probationer. The very liberality of the probation should not be made a tool by trial courts to stipulate instead unrealistic terms. FACTS Petitioner, Florentina L. Baclayon was convicted of the crime of Serious Oral Defamation for having quarreled with and uttered insulting and defamatory words against Remedios Estillore, principal of the Plaridel Central School. The CA/IAC affirmed her conviction and increased the penalty imposed by respondent judge and sentenced her to 1 year 8 months 21 days of arresto mayor in its maximum period to 2 years and 4 months of prision correccional in its minimum period. The sentence was promulgated on September 9, 1981, and on the same date Baclayon applied for probation with respondent judge who referred the application t...
MUST READ

CONSTITUTIONAL LAW I CASE DIGEST | THE DIOCESE OF BACOLOD V. COMELEC G.R. No. 205728, January 21, 2015

THE DIOCESE OF BACOLOD V. COMELEC G.R. No. 205728, January 21, 2015 TOPIC/DOCTRINE Free speech and other intellectual freedoms as "highly ranked in our scheme of constitutional values." These rights enjoy precedence and primacy. FACTS On February 21, 2013, petitioners posted two (2) tarpaulins were posted within a private compound housing the San Sebastian Cathedral of Bacolod (on the front walls of the cathedral within public view ). Each tarpaulin was approximately six feet (6') by ten feet (10') in size. The first tarpaulin contains the message "IBASURA RH Law" referring to the Reproductive Health Law of 2012 or Republic Act No. 10354.  The second tarpaulin contains the heading "Conscience Vote" and lists candidates as either "(Anti-RH) Team Buhay" with a check mark, or "(Pro-RH) Team Patay" with an "X" mark .  Those who voted for the passing of the RH law were classified by petitioners as comprising "Team Pata...
MUST READ

CREDIT TRANSACTIONS CASE DIGEST/ BPI FAMILY BANK VS. FRANCO/ G. R. NO. 123498/ 23 NOVEMBER 2007

CREDIT TRANSACTIONS CASE DIGEST BPI FAMILY BANK VS. FRANCO, G. R. NO. 123498, 23 NOVEMBER 2007   TOPIC/DOCTRINE The quality of being fungible depends upon the possibility of the property, because of its nature or the will of the parties, being substituted by others of the same kind, not having a distinct individuality. FACTS Franco opened three accounts, namely, a current,4 savings,5 and time deposit,6 with BPI-FB. The current and savings accounts were respectively funded with an initial deposit of P500,000.00 each, while the time deposit account had P1,000,000.00 with a maturity date of August 31, 1990. The total amount of P2,000,000.00 used to open these accounts is traceable to a check issued by Te-vesteco allegedly in consideration of Franco’s introduction of Eladio Teves, who was looking for a conduit bank to facilitate Tevesteco’s business transactions, to Jaime Sebastian, who was then BPI-FB SFDM’s Branch Manager. In turn, the funding for the P2,000,000.00 che...
MUST READ

REMEDIAL LAW | Riviera Golf Club v. CCA G.R. No. 173783, June 17 2015

Image
Riviera Golf Club v. CCA  G.R. No. 173783, June 17 2015 FACTS Riviera Golf Club entered into a Management Agreement with CCA Holdings to manage and operate the golf club. Riviera Golf defaulted on payments and terminated the agreement prematurely. CCA Holdings filed two separate lawsuits against Riviera Golf: Civil Case 01-611 for unpaid fees and reimbursement claims, Civil Case 03-399 for damages due to premature termination of the agreement. Riviera Golf argued that the second case was barred by res judicata and splitting a single cause of action. Whether the second complaint was barred by res judicata and splitting a single cause of action. RULING Yes. Res judicata requires the concurrence of the following requisites: (1) the former judgment must be final; (2) it must have been rendered by a court having jurisdiction of the subject matter and the parties; (3) it must be a judgment on the merits; and (4) there must be, between the first and second actions (a) identity of par...
MUST READ

CREDIT TRANSACTION CASE DIGEST/ MINA VS. PASCUAL/ 25 PHIL. 540 (1923)

CREDIT TRANSACTION CASE DIGEST MINA VS. PASCUAL 25 PHIL. 540 (1923) TOPIC/DOCTRINE Commodatum is essentially gratuitous. ADDITIONAL NOTE A sale of land belonging to another, on which a building of the vendors is located, is null and void, for the vendor cannot sell or transfer property that does not belong to him. Mina vs. Pascual., as prescribed by article 361, the owner of the land on which a building has been erected by another in good faith has the option either to appropriate and pay for the building, under articles 453 and 454, or to oblige the builder to purchase the land. FACTS Andres Fontanilla, with the consent of his brother Francisco, erected a warehouse on a part of the lot belonging to Francisco, embracing 14 meters of its frontage by 11 meters of its depth. Francisco Fontanilla did not fix any definite period of the time during which Andres Fontanilla could have the use of the lot whereon the latter was to erect a stone warehouse of considerable value, and ...
MUST READ

CREDIT TRANSACTION CASE DIGEST/ QUINTOS VS. BECK/ 69 PHIL. 108 (1939)

CREDIT TRANSACTION CASE DIGEST QUINTOS VS. BECK 69 PHIL. 108 (1939) TOPIC/DOCTRINE The contract entered into between the parties is one of commodatum, because under it the plaintiff gratuitously granted the use of the furniture to the defendant, reserving for herself the ownership thereof; by this contract the defendant bound himself to return the furniture to the plaintiff, upon the latter's demand. FACTS The plaintiff brought this action to compel the defendant to return to her certain furniture which she lent him for his use. Defendant is a tenant of defendant. Defendant wrote another letter to the plaintiff informing her that he could not give up the three gas heaters and the four electric lamps because he would use them until the 15th of the same month when the lease is due to expire. The plaintiff refused to get the furniture in view of the fact that the defendant had declined to make delivery of all of them. On November 15th, before vacating the house, the defend...
MUST READ

LAW ON PROPERTY | ACOSTA V. OCHOA, ET AL., G.R. NO. 211559; G.R. NO. 215634, OCTOBER 15, 2019

Image
ACOSTA V. OCHOA, ET AL., G.R. NO. 211559; G.R. NO. 215634, OCTOBER 15, 2019.   TOPIC/DOCTRINE Ownership and possession of firearms is not a property right, but a mere privilege. Should the State find that bearing arms would be contrary to its legitimate interests, it can revoke the license without violating the due process clause.    FACTS This is a consolidated petition assailing the constitutionality of certain provisions of Republic Act  No. 10591, or the Comprehensive Firearms and Ammunition Regulation Act, and their corresponding  provisions in the 2013 Implementing Rules and Regulations for allegedly violating petitioners right to  bear arms, right to property, and right to privacy.  Yes, Section 9 of Republic Act No. 10591 which mandates applicants for Types 3 to 5 licenses to  comply with "inspection... requirements." The law and the corresponding provision in the  Implementing Rules. Initially the law is silent and ha...
MUST READ

ALTERNATIVE DISPUTE RESOLUTION | HYGIENIC PACKAGING CORPORATION VS. NUTRI-ASIA, INC ., G.R. NO. 201302, JANUARY 23, 2019

Image
HYGIENIC PACKAGING CORPORATION VS. NUTRI-ASIA, INC ., G.R. NO. 201302, JANUARY 23, 2019   FACTS Hygienic Packaging Corporation (Hygienic) is a domestic corporation that manufactures and sells packaging materials such as plastic bottles. Nutri-Asia, also a domestic corporation, manufactures, and distributes food products such as banana-based and tomato-based condiments, vinegar, soy sauce, and other sauces.  From 1998 to 2009, Hygienic supplied Nutri-Asia with plastic bottles for its banana catsup products. Every transaction was covered by a Purchase Order issued by Nutri-Asia. The Purchase Order contains terms and conditions, among which is an Arbitration clause which provides: “ 13. Arbitration of all disputes arising in connection with this Contract shall be referred to an Arbitration Committee, in accordance with the Philippine Arbitration Law, composed of three members: xxx  For every purchase of plastic containers by Nutri-Asia, Hygienic issues Sales Invoices t...
MUST READ

LEGAL ETHICS | MAURICIO C. ULEP VS. THE LEGAL CLINIC, INC Bar Matter No. 553. June 17, 1993

Image
MAURICIO C. ULEP VS. THE LEGAL CLINIC, INC Bar Matter No. 553. June 17, 1993   TOPIC/DOCTRINES/WORDS AND PHRASES 1.     Words and Phrases; Meaning of “Practice of Law”— Practice of law, as defined by the Supreme Court, means any activity, in or out of court, which requires the application of law, legal procedures, knowledge, training and experience. To engage in the practice of law is to perform those acts which are characteristic of the profession. Generally, to practice law is to give advice or render any kind of service that involves legal knowledge or skill. The practice of law is not limited to the conduct of cases in court. It includes legal advice and counsel, and the preparation of legal instruments and contracts by which legal rights are secured, although such matter may or may not be pending in a court.   2.     Same; Instances when a person considered in a Practice of Law — When a person participates in a trial and advertise...
MUST READ

CREDIT TRANSACTION CASE DIGEST/ DELOS SANTOS VS. JARRA/ G. R. NO. L-4150/ 10 FEBRUARY 1910/ 15 PHIL. 147

CREDIT TRANSACTION CASE DIGEST DELOS SANTOS VS. JARRA, G. R. NO. L-4150, 10 FEBRUARY 1910, 15 PHIL. 147 TOPIC/DOCTRINE In a contract of commodatum whereby one of the parties thereto delivers to the other a thing that is not perishable, to be used for a certain time and afterwards returned, it is the imperative duty of the bailee, if he should be unable to return the thing itself to the owner, to pay damages to the latter if, through the fault of the bailee, the thing loaned was lost or destroyed, inasmuch as the bailor retains the ownership thereof. FACTS On the 1st of September, 1906, Felix de los Santos brought suit against Agustina Jarra, the administratrix of the estate of Magdaleno Jimenea, alleging that in the latter part of 1901 Jimenea borrowed and obtained from the plaintiff ten first-class carabaos, to be used at the animal-power mill of his hacienda during the season of 1901-2, without recompense or remuneration whatever for the use thereof, under the sole conditi...
MUST READ