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- f e o . ) a i - n . e 7 e s y y " ) o h y t a l l r 3 p y 9 f F i l t s r t a o u 2 r r a , r e e ) t o r f r n e 2 l t e r a a e e d p t r o o a p o n u c s o e i . t n A · e n n e r i d ( h l r s o r c e i t v a r i a e g r a G p u u r t p e o c p h r e l m t R c l P a s e t h n R c . f m i . o a e n E c S f s s a y n r o e 1 n o v n o C h n 6 e o e h r s g t t o e t a c r t n g s h n s o e h r h f , r n t i e r u n s t g t e i n t f o o e e a f f i i i a t b d e p u n n p B h . e o x u i i d d i o ) R t f q l l l r . e d t d d a a o s s F e R y a o e t r y ( e i e t v g v J n C r o , r h o r i d c ' t l e d n e r y l p , . w e a t e g t d . n o i 5 a e a i s p s x t r g n ) n r l f h e v 8 i s i t n e 7 n o e s . s k 5 h e a r k i n F e c p t . P n o . n r e v i c w i e e c o o o y l d a r i a n a c t b b f b " t i r i s n M , t d o i l I p i h s e A m l . a t ) o l c m u f 9 n l P y n e s a ) ( , r u c o . e s . s t a o o M a c e o ( 2 m o m 4 l q m s k e e n p o h 4 a e c o 5 e . k r r w C s t , e i o p s l o s a e o a f f g e . u c e s t h t a o e l g g e l e u D t r o R l i d m C n ( s s e s ( a s o g a n s s i t s v r a i r g h a a - u - p n t r e i e 6 c n o t P e s f S o s e 0 i r i s 1 v c d v i o o f 9 t a h o t e m 3 t e r e 1 d . d e n u d R a r , h h i m 1 f h d ) t t o d h e p a l e t s e p n 2 , o f , , u p 7 v h a a . , e s c r a a t l o r o e r t c . o e r d s t n a d r f e r l g t d l e e i l Y l f h u a i g e i d w d l n e . e a o e e i o u o p h n e P h i h s a t n r i D ( r ( C S s l c u r : v T a B a P r H w a . P . . P A . a
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t , d . r , - d J t e e r s u s a e s t s m e a o , ' v t s B n s n e v u e o a n c d o u t o a o m p p o n e . a u a r i y p o s l f n h c r s t y s i i o o . e t s e t o b t r f y ) d i r s s m e n T e , i h a e 2 d H a u t r w n h l s d t v . 0 d f l t M n e i ) p a o d ' o t s r e 6 r r 9 o a u t ; a t o n o f f u c t c p r c . N p e s 4 h r a i T . e o o n l t r l ( f f 4 p c s n 2 " i s i e d u s b 5 e y f u o . p h u t M e t . a 1 n a l u i s g d ) i e n a d r : g r o p n h P c r t d e 4 . , i . h ; e a n o a n i l c : 0 i t ) o o p 2 e i d r 0 P r o l v e u t u s f l s n i 2 o 1 s o h c 5 a 9 s u b e t m e s i c 3 b r 2 o h f P h s , . n p e u s . g , n p l 6 n c d s t i t i , l o x . e p e i i s s r l n , i i s s 3 . e l e i c e s i n y h i a h e e ) l s 8 i n r 1 ) h t h j r t e o a r P o n t h P r v e a h b t 7 o 3 e l o e t r o u , P t t 3 n H c R f i e l e v 7 4 p r a 2 t a s u h ; a t i e g p t i d 3 n 9 p o a s r 2 e e i r g e ( i , r r . d n d e , s . e 4 o r T w n . r n r o , e 1 t e p a a s . i l r m o n t i s p o s , o p i 1 s n v o i s y i p d c e t c h m o l d h o t d R f n i m w a v ( i h h l c e e t c k a i e e , i o n i m r . a d V P c o l e r h o d s y n t e r d n l a s n l t s t a " i a b e , r ) u g m a l r b a l v I e r . 0 r t i n L a v n c o h u o r s t o b o 9 i c m a e e s f y g v 1 a f p C f d e c h s f e e i T c U a b o p n l w e n o d r m , i b o l . ; ; e o C r t , r h c r 3 ( g o y t . t o l f . d r n e O r ' o a s u i t E n t o e r w t c l , l a w i o f v o 3 ( i v e i r h p e o e l b o ' n t t c r n a l P o ' r o i o a n i f c T t D 1 e e l a r , i e s S b . e u t v c G i . e f o y . . i t e b u u H e u e n m o h . c h e r a n a n s q c ( r b o c n 9 t i i s i t s a a u v c c a u C r r a 0 p h n e l m 1 v y f s t o v o l o 2 e n e a m o l a v 4 i . ) u s n h o a 4 o h i h f h r r a t t l e h M e i ( n e r n s t u c P t s a s t r t o T f c o e . r a v s e d h g n p ( . o e o f u g w u i n , a T f p r n N M e i o I w s o n N p e I T i s s c ) h y s e ) c l R o o . l s h r r t . n R l 1 a b e 2 g i a . . A P T s n o n l o e A b ( n h ( i n C t A , B b r - . i s s . u a d t e u i I o I p c e o b p o I t ' 1 0
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, r r , d e t f e e o e y , e e t e o y o e 3 s t o t v , v o o b h v h t n s t i m n i h t i e i t a e c t a l t a c i l r < r . , o l a w i i a h r o ) e y t s e t e t n v l f a e a r p c o 4 e s w b u i e i e e r Q t f , m h o i r t L b i 2 c s c o r h e , D i g r e e t s y c t e e p d f c h n 1 e i e o h s . a h d w i l s n o . h t c t u L n i u s , e l t e r b d i W e t i y , l n y s c e u a " M t e h r m r b f i e a - h t g p i n b n v ( h a : p e r e o l P j o p o s t t e e i a d o i u f l d t f l S d o a a e d d p e r n 4 . r t s n a u c y n o i d r a , l l i r p e a 2 o o i e i i 4 u b a d s c v c o d s r t s , W m o l e . r i f h s t n e e i c l s t t t , o f i a a S l y b a a s o p d s s r l a a t e u s l e n h o s d r n h h t i o a a e e p i h s p r N A a w p o t c h y t ' r ( r s e c o u L a h o n u f . t i f o t f h l e s f d s o o t t t L r t a p o " e m f s o y s u n h n b u i u . . o s h n o a u b e d e t r a y u t r t n s a t a s o ) n s r e t p i i o e i d c a d r o n e o i m h f " s C e c 6 f e t n i v o . i e i h f l p e e t m v 0 p r s a l f t r a e s v c y h 9 o b e s p p e u s r u t n e o i 2 m v r o e a u o r u h u o i S a r r e c r c i p s r l e y c e t s ' . i e a r e Q e p t r p e r t r p b v s n e e p x a a s o p r e l p h a r G r e t s t . s G w h f e r g a s . t d i u E h l a c s d t h f o a s o i a p f o n e S t t f n e f c o v y o n e s o t a p r o e n g r h l e n u t d o n o l r d r a e e t t e g u h , n n 4 e a ) o m a s t e t m i P d d , n h o e s t i y e o t t s g t . e l e n s c f e e , l a n r n . n p 1 i e h d t a c v o r r h i n m t s r a t s 2 e 4 s a n o n c r a A e m r r r o p i 2 t m 3 e v a c o p n n e f n h e e t a W y i r u t t 4 i n r ( s s L t , u r k s p e s " l e a t a e a a r r f o e n e - l i . l d r e s n W r o o f h a m i d 6 a o n b . t T r s o f D m e r I t . p e o n r H 6 a l a e d d e R g l t o c o t . r n u r n A s e f U 8 A n a a F b a a 1 p g a o e ' t . o h . I l I , s S 1 . 7 3
e d d d v v h n i n t o o a s r r a a , s p p s , s y e b e t e h e r d e i h t e i o t t r a n r c f f t o n o s e f , y i t m s t s l , i e a o i r d e c r e s ) s a . p p n p n i o 3 u o i , c v r 4 c c i s p s e o e i i n r r p 3 t l , ( c e p . b s u t i i J o y u i e m a v f t a r p t o i n t e w i i r r , s p l c 3 e s y p o a t i c i t p c n 1 l r d f i e i e o b l e d e c r u b u i p i r y p t m o v l t s p u r n r i u p , r a e m y s p d i p t n r o n s i i o , o e s r d h i o P a f i e n c t m T s a , n s t e i i , . i . , s u k c r 4 t s 3 t i o r a 2 , e d a 2 l f o s i 4 p o 4 a t , w e r s p d . i c . i c e n T i c n T , l r i c i R n a R s a a l v i A u e A e u b c c r u o s n n s p p m u i i q
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, , , d - o 1 l . " . . 4 l , s s t i i l 1 p s e 1 m g e e n o e o t o n h h . h d r o c i P i t l , P . p c o c p v w i s r 2 r ' e 4 e e c e o h u e d h . o 2 r 1 b . b t ' t ) C , , a y s C n , y l s y e 1 a v t d h r 4 p e i . t d c . l i c s e i r : n o i W h n r . a s s p p a l o e t i n 1 L A s i p u e o u h a a i r L r v d r t e o i o r o p o P p C f r i S f o L v e n f e I n r 7 p p p , r . c 0 w , l d o V r i a , e s . o l o e i r l d , z h . n l t p b n C e t a i v n D e h r f u . f u i a c i t l o E a t f r h k s p u a M c e i N S o h c l s m s r . v o v I i a r t a t u s s p s P r e s t R 1 n h s e i o c t i a v e P h a a r e , s . r C h h s e i I p h t t i s e i p . s L i c I f f s , e e s d v g c c l r a B s e i H o o n c n a n n h l u C . a n i c P y o o h l s t e c o e r e t y ' r h v t i a p t C s , F r t a f ' r f a u a c v s t o O e e s r B h e o i e e ( y C i p i s l u d g t p ) s r E o p o N n t : r a n a o n o . o . h i i r N 5 r l e L I P a t 4 k o w n t v t f a p p a c s , L a f i C o 3 e y s a o T 5 l h i . h v ( m , p ; n . u c a i U 2 e c i r i s r o f e u 5 u i h i O 4 . r n n r p y a y T g o h t h 1 D 3 M i o i u l . l l e C l . ; ; t : l r e c o u e T m c y r r p e i 9 5 m t i v c i R i t e F h h 3 8 e r r t r d o A t g c P t m . t P 6 4 e t s a n n I e ' . p a i l I I
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, - i r f e y . e d s r e o h r " n d n . e o v t n a a h g r r e l u a · d o h , o s u r e . t n f t " i , l c s t c m g c t . u w o n r c n k e e s i t p t a o i i m n n l i i i a ' , n c l t a n c 1 x " h e m o r e - h o o t e e t t C u t s c r d e m t h f v t e o . h a o n a n n t n " d o f l d i c a h e c r s i o b e r , t a s t o n s e , o m d s e m v o i e d r i n r h i e " e t o o e t o r e t o , t u d a a h s d m a r q o i " e e l e e r , l d g m a n o l g b l r , e r b m b i o r n e s h h o h u f c a i t l e c i u t n i s i l n h 5 i o c d t " , a c e h m n r i a y n , h e " n o r f r w r e l ) 1 l b i ' . o s e t l c g f a u h a i l n d r m t t 6 u s a , r e e a I d i s g e w h m r i 4 v c s , ' o t o a e l h v 3 m t p i ( m s w ' d c . r n t h e e d 2 e c a t . I , e e ' s c i ' t s n h d c r y r u s r r h e e x r l l e e a e j W l o S t t e a e b h a s I p r p , h ' t o d a e u g w , t p o g e v e h d n a i n , e J m r i r C i y v n d , . o y d o . i h t l e , r y s n i l d t e i h e e s s , u , r n p d k e b a i n u e o d W o n o w e s l l a o o I a l r n n b c s b b d a a p a . i m r
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E E R H T E S H R E T . T O P T A H C G N I D E S C N E R O I P S I V O R P
: J
J
OUTLINE OF PHILIPPINE CIVIL LAW
PROPERTY RIGHTS IN GENERAL I. Classes: Real and Personal .
W hile there ar e rights between persons only, (since only.persons can be active or passive subjects in jur idic al rel ati ons ), the re a re rights which refer to objects possessing a value that can be expressed in terms of money. These rights may be either absolute (erga omnes) or relative. The first ar e ' al rights. termed real rights; th e second person
A. Real Rights (Jus in r e) . a. Definitions: A real right i s one that confers upon it s holder an autonomous power to derive directly f ro m a n appropriate thing certain economic advantages, independently of whoever should be th e possessor of th e t hi ng . ( De Buen). A personal right (jus i n personam) is the power belonging to one person to demand of another as a definite passive subject the fulfillment of a prestation to give, to do, or not t o do. (Sanchez Roman). (The mediaeval glossatores created an intermediate category, called jus ad r em, which is th . right to obtain. deli very of a thing as prelimin a r y t o the creation of a jus in re tnereon, This class is questioned by modern civilists). b. Charactersistics: 1) The holder must be able t o act directly upon th e thing by himself. In usufruct, the usufructuary enforces his right to the fruits by harvesting them himself, and restraining directly those interfering with his rights. In personal rights the holder must enforce his rights th r ough another's action. Thus, the lessee can not proceed against an intruder in his own right bu t must ask the lessor to quiet possession. The enforcement is 16
OUTLINE OF PHILIPPINE CIVIL LAW
through the lessor. A buyer can not seize t he thing sold ; he must require delivery from the vendor,
I
2) The content of the real right is enforceable against any poss es sor of the thing subject to the real right: th e latter, therefore, is absolute, enforceable " ergo o mnes", against all other persons. The French doctrine speaks of this feature as a "right o f pursuit" (droit d e suite) . In personal rights, only the one individually obligated as ail obligor can be required to respect the right by discharging the correlative duty, In personal rights third persons ar e also required to abstain ·f rom interfering with the relations between obligor and obligeecreditor and debtor, Bu t this duty is inde pen den t of the specific duty o' wed, and has nothing to do with the content of th e personal right, c. Classical distinction
between real and personal
rights: 1) A real right is exer cised directly over a thing; a personal right is exercised through another person (Falcon), 2) A real right has a specific object or item of property; bu t a personal right affects all present and future property of the debtor (Cf. Arts. 1911, 2236), 3) A real right follows its object in the hands of an y possessor; a personal r i ght is not enforceable against a transferee without notitle (Castan). 4) A real right is limited by the value of th e object o r i ts productivity; a personal right is
no t so limited,
OUTLINE OF PHILliPPINE CIVIL LAW .
OUTLINE OF PHILIPPINE CIVIL LAW
5 ) A r e al right is extinguished by t he destruc tion of th e ' object. Personal rights survive destruction (Sanchez Roman).
express provision of law ; it becomes avasi-real iIi effects if recorded. f . Real Rights under the Civil Code of 1889 elimi nated in the Civil Code of the Philippines:
of Real Rights: 1) Of Full control: i) Ownership. ii) Possession. 2) Of Enjoyment: i) Usufruct. ii ) Servitudes. r ec o rd ( Mo st c o mm e nt at o rs iii) L ea se doubt whether this is truly a real right).
d. Classes
1) Use and Habitation 529) .
2) Censo (ground rents) in all its forms: em-. phyteutic, consignative and reservative (old Code, Arts. 1604 to 1664). Reason given for their elimination: "No con tracts or wills in th e Philippines refer to censos or use a nd habitation" (Mem.,. Code Comm. part I, E) .
3) Of Guaranty:
i) . Mortgage: ii ) Pledge. iii) Antichresis. iv) Retention (differs from th e common l aw "lien" i n that retention requires t he pos
session of the thing o r else t he right is lost) . 4) Of Acquisition: i) Preemption (Its nature as a real right is also disputed). ii ) Redemption. e. Number of ' r eal
rights: is a most debated question whether th e real rights in civil law are limited in number (nume rus clausus) or n ot (numerus per tus ). Strictly speaking, provided the characteristics (of direct action an d exclusion of all other persons) ar e present, a right may be real, even if innominate. The mere' fact of recording, however, even if it serves as a notice against the whole world, will not convert a right, by nature personal, into a real right. Lease is an exception, bu t thr.ough
(old Code, Arts: 523
It
.
18 19
OUTLINE OF PHILIPPINE CIVIL LAW
be two or more real righ t s of different content and mortgage) . There may be two or more own ers (condominium) bu t only one owner ship. D. Its independence: I t exists without necessity of any other r i gh t . O ther real rights presuppose th e exis tence o f ownership (Valverde). E. Perpet u ity: It cannot be extinguished by non-user, bu t only by adverse possession when ownership is transferred to another. Ownership lasts as long as th e t h in g exists. may
(VIZ; . usufruct
Title II . — O WNERSHIP CHAPTER I
OWNERSHIP IN GENERAL
A T. 427. Ownership may be e xercised. over things or rights . (n ) 1. Definition
and Co nce pt:
A. Ownership is th e right to enjoy, dispose an d recover a thing without further limitations than those es tablished by ' ia w or th e will of t he o w ne r ( T S Jan.
III. Forms of Ownership (Castan): A. By t he s u b j e c t 1) Public.
22, 1944). B. Ownership is th e independent right of exclusive en joy me nt an d control o f a thing for t he purpose of de riving therefrom all advantages required by th e reasonable needs of th e owner (holder of the right) and the promotion of th e general welfare, bu t sub jec t t o t he restrictions imposed by law and t he · rights
2) Private.
of others . II. Characteristics of Ownership: A. Ownership is elastic, in t he sense that an y power or n u mb e r o f p o we r s c a n b e detached therefrom and its content reduced accordingl y, b ut upon cessation o f th e limiting rights, it recovers th e powers lost, im mediately a nd automatically, without necessity o f a ny jur idi ca l ac t or conveyance, whether th e owner is competent or incompetent. B. It s generality: It is a right to make use of all th e possibilities or utility o f a thing, except those. attached to other real rights existing thereon. Other real rights ar e special, involving specified or determinate advantages or services derived from the object. C. Exclusiveness: There c an only b e on e ownership over a thing a.t a time. while over th e same thing there 20
Individual. ·Collective. B. By the o b j e c t 1) Over movables. 2) Over immovables. C. By the juridical relationr 1) Full. 2) Less full: i) Divided--where there are many owners (coownership) or where control resides in one person, and benefits go to ano ther (legal an d equitable title). ii ) Encumbered-aa) Materi ally-affecting it s enjoy ment, e.g. by easement. ab ) Formally-affecting its disposi tion, e.g. b y mortgage. i) ii)
.
IV. Property and Ownership distinguished: A. Property is t he economic term . B. Ownership (dominio) is th e technical ju r idical term. . Both terms refer to the same right. 21
OUTLINE OF PHILIPPINE CIVIL LAW
OUTLINE OF PHILIPPINE CIVIL LAW ,
ART. 42 8. The owner has the right to enjoy and dispose of a thing, without other limitations than those established by law. The owner has also a right of action against t he holder and possessor of the thing in order to recover it. (348a)
Dir. Civile). In France, the erection of false structures solely to deprive a ,neighbor of views (Colmar, May 2, 1855) or to erect · an unnecessary covering, painted i n black, to darken t he neighbor's house (Sedan, Dec. 17, 1907) have been declared abusive ex ercises of the right of ownership. This i s t he mean ing of t he maxims "sic utere t uo ut alienum non lae das" and "alterum non laedit qui jure suo utitur". (See Art. 431) . S ee Vol. I, p p. 29-30, (Liniitations t o the Exercise of Rights).
I. Ownership is independent of th e various powers that compose it. In general, these a r e : A. The power (faculty) to enjoy. .a. To possess (jus possidendi). b. To the fruits (jus fruendi) and accessions. c. To use (jus utendi). . d. To abuse (in the sense of use that cO,nsumes the thing itself) (jus abutendi) . . B. The Power t o dispose. a. Alienation. b. Encumbrance. c. Transformation. d. Destruction. C. Th e power to vindicate. a. Pursuit. b. Recovery (Art. 434). D. The power to exclude. a. To enclose, fence and delimit (Art. 429). b. To repel intrusions even with force (Art. 430).
B.
..
IL Ownership is n ot a mere sum o f these powers, for any number of them can be detached without altering its essence. Potentially, at least, ownership is th e most ample power of domination (senorio) that ca n be had over a thing (Wolff).
III. Limitations of Ownership: A. Inh er ent limitations to its exercise: "The law does not protect anti-social acts, such as; those that do not benefit t he one doing them and yet injure those against whom they ,ar e directed" (Stolfi, 22
Limitations to th e right of excluding others: a. Everyone is bound to bear the habitual incon veniences tha t result f r o m t he proxi mity of others, an d so long· as this limit is not passed, . h e ma y not complain. But, on the other hand, if t he damage exceeds t he trouble that such pro ximity habitually brings, t he neighbor who causes such disturbance is held responsible (France, R equetes, 5 Dec. 19Q4; Cass. 19 April, 1905; 24 July, 1908). Excess constitutes nuisance (q.v.). b. Duty to permit entry. 1) The , owner of a thing h as n o right to prohi bi t t h e interferen,ce o f another with the same, if th e interference is necessary to avert au imminent danger and the threatened dam age, compared to the damage arising to the owner from th e interference, is much greater. The owner may demand from th e person benefited indemnity for the damage to him (Art. 432). (Compare this rule wit.h the requisites of self defense). 2) The owner of a swarm of bees shall have a right to pursue them to another's land, in demnifying th e possessor of th e latter for th e damage. If the owner has not pur sued the swarm, or ceases to do s,o within 23
OUTLINE OF PHILIPPINE CIVIL LAW
.'
OUTLINE OF PHILIPPINE CIVIL LAW
two consecutive days, the possessor o f t h e land may occupy or retain the same . The owner of domesticated animals may also claim them within twenty days to be counted from their occupation by another person. This period having expired, they shall pertain to h im wh o has caught a nd kept them. (Art. 716). ' c. Estoppel arises from failure to assert the right of exclusion (De Inchausti vs. MRR Co. 36 Phil. 908). d. Extrajudicial abatement of nuisances may be made by private ' persons (Arts. 704, 706). C. Limitations by law on behalf of common welfare: a. By reason of public utility (Eminent Domain) upon payment of just compensation. (Phil. Con stitution, Art. II, Sec. 1 (2); Art. XIII, Sees. 3, 4 an d 6). b. By t he Police Power and General Welfare clauses (Arts. 638, 694, 707). c. By the Taxing Power. d. Fo r the purpose of conservation o f natural resour ces (Art. XIII, Secs. 1 a nd 5 Phil. Const.; Kriven ko vs. Reg. of Deeds, 44 O .G . 4 71 ). e. Fo r maintaining social stability: Art. XIII, Sees. 3 and 4, Const. · of the Phil. See note B, p. 30. D. Limitations for private benefit of neighbors (rela t io ns o f neighborhood, "relaciones de vecindad"). Examples: a. Liability fo r noisome and excessive smoke, ema nations, etc. (Art. 2191). b. Observance of distances in planting and build ing (Arts. 677-679). c. Observance of distances for making openings in one's own walls (Art. 670). d. Duty t o grant right o f way (Art. 649) even with out indemnity (Art. 652). ' 0
0
24
e. Duty to receive water naturally descending from higher level (Art. 637). f. Duty to drain buildings through one's own proper ties (Art. 676). g. Restrictions in th e use of party walls (Arts. 644, 666). h. , Restrictions on Excavations (Arts. 684 to 687). ,E. Limitations imposed by the will o f the owner (pre sent or previous) : a. Provided they are not contrary ownership or forbidden by law servitudes).
to
the nature of
encumbrances
oj
b. Pactum de non alienando (Contractual prohibi tion to dispose). 1) In general such prohibitions to alienate ar e valid unless expressly forbidden by law"An example of a case wherein such a prohi bition is imposed by law is that contained in Art. 2139 which provides that a stipula tion forbiding th e owner from alienating th e immovable mortgaged shall be void. 2) Int erv ivo s –Th ese agreements "are valid as personal obligations bu t not as real rights, because they contradict th e liberty ' of , dispo sition, diminish unnecessarily the landed ter ritorial credit, constitute a doubtful and im perfect guaranty, and invalidate to a certain extent the provisions of Art. 107, par. 4 of th e Mortgage Law." (Res. Dir. Gen. de Reg. June 9, 1914 and April 14, 1921). See Bank of P . 1. vs. Ty Cameo Sobrino (57 Phil. 804). "However, we do not hesitate to accept t he view above se t f o r t h t o t h e e f fe c t that an agreement of such nature, while it does not nullify t he subsequent sale made by t he mort25
OUTLINE OF PHILIPPINE CIVIL LAW
OUTLINE OF PHILIPPINE CIVIL LAW
property rights."
gagor, nevertheless operat e s to auth ori z e the mortgagee to bring the foreclosure suit against the mortgagor without th e necessity of either notifying the purchaser or including hi m as defendant, (See " quaere" below.) And this holding is in harmony with the doctrine enunciated by this court i n t he cases of Sun Life Assurance Company of Canada vs. Gonzales Diez (52 Phil. 667) to the ef fect that .in such case the purchaser of th e mortgaged property does not lose his equi table right of redemption." (De la Pa z vs. Macondray, 66 Phil. 402).
II. Limitations – Se e ante pp.
ART. 429. The owner or lawful possessor of a thing has th e right to exclude any person from the enjoyment a nd disposal thereof. Fo r this purpose, he m ay use such force as ma y be reasonably neces sary to . repel or prevent an actual or threatened unlawful physical invasion or usurpation of his property. (n ) I. "The second part
.
(Art. 429) embodies the doctrine of self-help which ·is found in the German Civil Code, with th e limitation that t he owner may use only such force as may b e reasonably necessary. The right t o repel or pre vent an actual or threatened physical invasion or usur pation of property is essential to th e maintenance of 26
22-2G .
430. Every owner may enclose or fence hi s land or ten ements bv ·means of walls, ditches, live or dead hedges, or by any other means without de triment to servitudes constituted thereon. (388) AR T.
1.
i) Quaere: In v iew of the new provision contained in Art. 2130, does the above ,ruling still hold? Or should such pro hibition, being void, ,be considered as not written in the contract? 3) Mor ti s Causa: These are limited by the rules of fidei-commissary substitutions a n d t h e maximum period of 20 years for inaliena bility. (Arts. 863 an d 870) ·.
(R eport of the Code Commiss ion, p.
95) .
•
With re gar d to live hedges, if the y a r e formed with shrub s an d not as partition walls, they must be planted at a distance of 50 centimeter s from the boundary line of th e estates or according to the custom of the 1ocality, as is provided for by Art. 679 (Manresa).
ART. 43 1. The owner o f a thing cannot,make use thereof in such manner as to injure the rights of a third pe r son. (n) ART . 432. The owner of a thing has no right to pr ohibit. the inter ference of another with the same. if the interference is necessary to avert an immin en t danger and t he threatened·damage, compared to the damage: arising to the owner from the inter ference, is much gi'eater. The owner may demand from the per s on benefited indemnity fo r the damage to him. (n )
.I. This is sometimes called the doctrine of "incomplete pri vilege", II. " In Ploof v. Putman, . . . the Supreme Court of Ver mont held that where, under stress of weather, a vessel w as without permission moored to a private dock at an isla.nd in Lake Champla in owned by th e defendant, the plaintiff wa s not guilty of t r espass and that the de fendant was responsible in damages because his repre sentative upon the isla nd unmoored the vessel, permit ting it to drift upon the shore with resultant injuries 27
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; ; . l . 9 f o t . d p g ) e o d ) l 2 n e i s i i m i a 1 8 h h n h a , s y n 1 s 9 s i P i i P o t t C 7 7 a r r n a ( e l n R 5 t o . l . 1 e e ( p n s l 5 d 3 p i i w p x o . u , h s , n i e r s h e o t o m u r ) a P i P k h n a l p 3 s i ; n s g a l ) u n e 0 2 o e 7 l r w e J o i 1 t e 5 5 t l e 3 m h R a n i . n , u t , t 3 h . . v a b t 8 e l e n s w j m n t n i f o r v i c ; t h o b a d l . e . o o r a ) i c ) o D l i c P s r B i n f 0 2 a h n s 7 e o r o o 0 d 3 . d 4 l B e a s n 6 N s P o 6 i v f c n c ( p l . D s t l a o , s . i 8 . f L d m v s . E a n o h 5 i y o a a : v a l i r l ( , o h w h p P m i , s g f b x e s s s P l o A E r e o n i s n e d y a o n - a e d x i o e k i i m s 4 a t n 4 . l e a L 6 a c i u i s u t 5 p R s s a l i i t ( s e o s , d , G i , f s r v o D ( p s n n . t h ( p i d s s s o n u t r r r e o a a o n n l e r c B v o e l m y n s t l r a o o i v n o u a o i . o i i r t a l e e C i ) t L h n r c a h G e w T d e t e a u ( o s C e p y 2 e f t B s 9 r r i d i c t s p a u o a i f n r 2 i l s o e l ; c . y y . o ) t . y D f a l a s i . c b r r ) i h f s e r e r l t r y p u v i c s . r h e t 9 m o o i t o i r 3 u 7 h i h d D o s 1 P s v A p u o f R T 6 6 a T T P x . t a o l . . . v o . b . a . t s r c a b c d e v e r i d P a u a l A r i . u a D C ( . S f I I I
- c - d e , ) f . , r a p i o h y e l 2 t a s t s i o ( i i l a r b n y r p t p c " w i e p u o , p p m r 1 h . e C s t i r m o e n s . ) u o u . h o o c p a c a i e v t c f f c t o t S r 9 u i l s n o d t s D 4 t i , e b a t . 3 t r I s d u x n s ( I i e a e a j p o p I v u f n . n o r R i m t . t i n C o e r y · f o r t f o o p i , c A o e d n d i e r t n n y ( i s d o n e n s e l a b p k : e h a e t e b t s p a a n d t n i i b s t y l e u e a i c o l t s m a y n e p h b e A i l m m ( c a t a e t n 9 P o r r t 2 o h s n e e p D r i 2 o s e x m v " p h c . n . t e o . e n t e n i r l n . n e g ) . e l o l n o l p o ) e b t s a i i s u a l s n p t r b h t i 5 h u q r u s a e m s a n n s s 1 o e m S e u p o 2 o C c s r s n , y n E i t e m t . . o y y s t r p l a l r w 1 i f r e . N i n i b a o e o m u h p c w h . e o o P s w s e h t o l t P c 5 e S r c h e p a a h , t o 9 i p 3 e , p t T 4 c d d s e h 2 , i s a l e t I I e . . x n u h I t u l t e h c j i u a u T e a o , r . a q v t n e T s t i . h o R r r u a t y n h R . t S A t e A P o M o i s s i r e . A I e u t w r 1 . I
W A L L I V I C E N I P P I L I H P F O E N I L T U O
; ; l . l . 9 f o t g ) e o i i d n s i 1 ) 8 h h 2 a s y n 9 1 P P i , i t t o s 7 7 1 r n a n t R e . l . 3 5 o e ( 5 s l p d i i , u r m o h , s t n e o u r . s h i a P P k a l ) p g s i ; n a 3 e l ) 2 e w o e 7 l 0 J 1 R i 5 t l e 3 m 5 . h , . a v , a t n t . i h s m t 3 8 e j f l t v o r i n i . e n d l o i o h o b a o r l i r n s o B r D o a h c s P l . n e s P o d 7 B e a N c s v p c n l . D s t ( l a 4 s i 8 , f . E 5 m v L ( a n h , o d a : s o v w i a s , x f s i g o b E e e o n s l r d o a s s n A - a y e n i i d . e e i i k c a t s u e m a u s i . l i s a s s p R l L i t h ( G o D o e v i , f s r t s s ( p ( p s o n u . r r r e l t a m n ' l e r o B v i o e o o s t c r n u v i . o o a r i C ) e i d l T w r t e e t G c e 2 a h e p y 9 t ( p o s C d e s i r i u c f n 2 a i s i s o e l ; r y o . y c r t f a l . D i ) r b f s ) r h e o r y u 9 e 3 i l t i c s . h t r m o o r h i p t 1 7 h u i s v A u o f a T R T 6 P 6 T P o l . c . . . b o . . r c a d b e a P . C
. d p e i m n h a i r C a s ( l e p n p x e w i n o h u n s r e t o n u n b e w c ; t a . c ) f ) i 0 2 o 0 d 3 n 6 f 6 i o l . y l . o a i r i h p h P m P o 4 x 4 n 6 a t 5 s , , i s d n n d o a y n n l a o i e a n t L h a u f t B r a o l . c . y a s r e i p v d D o s x . t a v a t s v e r i d u a l A r u i a D ( . S f I I I
. f , r , ) h - d e - i c a o y p e 2 a l t t s i i ( i o l b s a r p y n r t c " w i p u o , p p e 1 h p m r . e C t s s e ) n . i r m o u c o u . c p a h f a i o o e v t c t S f · c t o r 9 u i n l t s 4 o s , i e , d t D b a t t 3 I r s u d x s I n ( e i p o e a j u f a . n p I o v R r n m t . i i n y f t C o r t r o f e o , i o c p i o e d A n d s i e r n n y ( s e l d o t n a b : p t k n e a e h e n s p a a n t d e b i i t y t s b e e l u a i c s m . a m t e o e A i l h m l n p P b ( o c n 9 a t y r r a e t 2 t o e s h e n D 2 p r i o s e x m v . n " p h c t e o ) . . e n t n e n l n r l e g t . e l o i n e l . o o p s a i ) n b l s s a i b p u h t 5 i t r a n m h q u r u s a e o 1 m s n o s s e S e u 2 E p c s r s n , y o C n i t e l . m t t r o y y 1 . p f r a l w . e m i s r i n N i o b a e h u o p c w h . t l P s w e h e o o o t c r 5 S e e c h P p a t o , p t 9 i 3 h p , e T 2 e t I s 4 c d d , s h e l e I a i . u l . x I t u h u h c t e a j a u i T e n r q . o , o t v t n e T s · i R a . h h 1 r u a R . t y t n A e t A P o M o S i s s i r . A e I r u e t w I . I
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- d ) n e x r n e s ) e d " a u n ) n o e r e ) u e i s o h g m e w e s a e A s l a t o e e t h l s e o t i n n e S p r o a t t p v i t f n v b C r g i e h d s i . e e . t i ( v h r i r e a t u d . ) o : y . a e n n r e e n v n ) r r t e r m s d e s e f m v e s c r o i v s n i 9 t a e l e a f u a i . r h e r r a i e e r l d h 4 r h e n e b p t f x o M t d q c h e s s t r e u ' e a 4 a h ( s c i t u c " e r o h r e n v t y e t s r f . i t p e f i a l t ( n t . o t e h n h t r s a a o l m p h 5 t a d u n R e n h v s r h i o . r t g i e n e i 4 i e m t i o u h p b p t r w i e s e n 5 n h e e A r . g u w l t d t r i a t o o y s s ( f h . u i r b a n l n u . h m u c d h e t n e v i s s f t c i c u m e r a a u w o n t n i r i , r r o t t ) e a o d e f s s h r e e v f e g s r w i n f u o A t o h e d p e r n l t a g e e d m f l o o o o m h r f s n e c h s d e . e a n r h n p i y r i r t e t r i e s o a p e r t h t p e r t e e t : s b m a r o y h f v r m b h o i e e p e t p t e e n f l a i c t n u o s l i t a h y n p d t D h r s t h a o w s r , s s e s l , x c d y ( e e t t s i e a e t u h t i e i r o e e d e f p r e f v s a a h r b l n t y e j i o d t t p e p o f l d r n t n u 7 a b e v g g s e n s e s n e a v t e 3 n e r , l a f t e s s e o s i u c e e h o t o s v i e n o r , e e t s n e o l r t s i k , l e w i o y c p ( t r u e n a o r p c n n o e r s i r n o a g x s r h a e e n e e a h o o r d h n s f H i e t e o i e e h g e t t i i p s n t v m l e a o e t t h s o m m l t H e ) b e s a t i r c e e e g i h c p e s p u r e t . d r r a l f o u a ( p h n . r s e a d ) . o r l u d o t d o a a n p e w h o m n r e f t d o r d o e h s p e o c s n u i i t s h h s i e r s e y t n 4 i r m b d a h t t o t o b r i w . e y t e e i n e a 4 u r t a p h c r h e l r e s a t u s h t e e t 7 ) s e a : n u , d 1 f b p o H p p f t r a u a m c h l e : n r s s k n i r d . m n h e c e g n s ' . r n t e s e p o e p i e . t e a o a w i ( i m e i t r i n ) . i o e s o i ) o o t t e r h g r v x t o s w f 3 t u o s r x r f N t s i G n r p a t e s r b p h o o f r e . i e e f o o o r s a h 4 n h n s e l o r e w s f t a i a d : e 4 o t 6 e e e T P t e e v e e 5 e t e e t o e r a u s r h f n s e c . l n M q h u p h h c n s b 3 a t 9 e . i n v o e i n n x a m T a n h e s e i r e t t h 3 P i . h p s s ( e T n i T o n ( e a T t t a i E t s h . a p S R p c i . R i g . x w u . . . M e . x B a . . n ( B A A l n o E ( m A A C . e p f I B b o i . I I . I I o s t I
W A L L I V I C
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. . s l f l e g f . f l y v a e n ) o o a o s i o 8 n x r p 5 s g u i t e i V e a ( e 1 u c u d o t c h i o r h j l u p e i l n i l o n s u i g l i . h i d t p e r t b o r b r a a m b i u r r n v a c e p i a h l m p A e e t o e e ) ( w . e h ) s r t h h h s n R e h g e i 5 e t t t t t s ' n h ( h n e c r , i t e 5 n t f f o h e d d o d 5 t i t w t c j o e l l u . r o n o i y f s i t l l a c r u e d h b b u r u c i P u o a s r y e b n n h l w s t a t n i n ( , i v P a c s w m a s e , e l n l n r y a t a t p n g . r 8 o v a m s r o a a ) n x e u o 4 e t c g j e a d u e i o n p 8 n s g 7 , j d e s o t n o v n e n y 7 m e n l e s t i n i i a o a 5 v h o z C r l t l c u o i t n d i y u r , o p e c o r c l o o n a i t a 2 r t e p c p e r h s P e t a o 1 " e h t p s o e t h c s . m r h t d e a o p . i s u t s m g o r r n v s o n n o u e n t r o m s p N o o t a e , o a c p e w s i e r i d e t n n t r , a l s H d o s , b - l o o i . a ) s G a u p l e t l c u g a d r u d f i O s o i 1 o o e h g e n . f f b n y y 0 g p 8 d u t o " S n t 5 n s s e l i r j n 1 c w n ) t t . e e i a n r e o l a d s e l n v s . i s d i o r e n i r p l t e h e e e e n e c i h s r a r e P e , r u c t a s s h h l u i e ( e o l t H ( S I t t i p i e B c n n . . c b ;
,
. ; e e e y s , h r s h e h h . n h t t m t a e r e i g a t I t e n o h t , a d e w u h a c t h f n t , o v i t m f o o d a s h I a s s n a e g a a o h o d t f m k i n b n l d i e r a t f d w o l o n i h o g a a t f m n s i t h n r n a b i a a s c o e I e d o l l r a d h p i e e . b a t e d . I I v o i w r p , r f c h e s d m i e k a e t d e t e n r e a e c s r n e t r m h a u t a o e c h n r . l o m h c t r w a y e i e d e n e f d I t s I w n e h a h i r a i n 9 I n r , o o e t t m w o v o 3 s o o f h d t e l y c n e s h r n s w , o g t a d h b t n s e p r u i n o l o k e a r ; o k o d i s e o g f o i t r h w t i r i r e n t o m l n o t h u b e w c a e s l t y y t w h r l w u r k h a o b a o r r a e t e r g i v e n e h t l e m o e o l e r r s t h y w b w v n h t d t A n e o o f h a T l o o t o r l . a o . s e m c i t h 6 m c 7 a o l t y , r f i 4 d e 4 n a e r r s 4 e h 4 o s y l h o w ) u g e T o j n a l t . s v r n t . . a a o p n j e r T e i h . t i e t T m s t 0 l t s u n p R s e R c l s s h t n w n e 6 a o w v 3 g u l A e l A , u a e e g i n r h r n o r p H o e ( a s o t h p u
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n i s t s t . i s s n e t o c o r p s t l a u i o r h e t t a i m w s e l a h t i r f e o t a r e m e n h w t o f e o h s t e u n e i h h t t i g a n f i w d o l a l B a
. P
- s e e - t - n r - , e e r e o o r e d s e o y h I h h h l e r i t r a t t t n i t c e n , p n d n a i u r i a 8 w b f . n y a a n h f o 4 a e c s t o s n h p i w 5 e h s e d p c o t e h e d t r o i c e r h n d e , h o o t t t h n m o s r t e n t i d s g e a f w h m a e n i r i e T t t a n o d a e y l n i , e 6 e w e i s s . a h o d a a 4 t o r y - t u g p l s n p p 5 n e t t l r a e d e n i a o t r o i v x l h o d r n e i r s n n e e p a e f l p s a f t l l p m l l w r t i c e t l u b e h i l i p a e ' a t e d b a d a f l f h r n n i r n h o o i t o , a l t e o t i s s u h g i o b f t d e r n e n a u h n t s o r m s i m e t e b u o e w f r a t r r p r l n o h o e e o o o t a o o d e t y h t o c t l f r n s c h n r a , , t p e p e a h t w l w a e t h p t d h h o i h o t r e l t l n e t , g r , v u i e y o d e d e b a s f t n t u n h h n r g i v n o n w b e a o a s o a o p n o e , T e l r h e m p h e H o e d u m t h e . t b e w t h 8 e e ) e , d 4 y e t . d e e o a n r t e r r v e 4 s s t i a a s 1 o f a g g g g l r a a 6 . i , n i l m a l o n e c T h h s e o l i s 3 m r b b l e k ( R g h l h l e o o y r c t d n r l a A c g a o d i i h . r e b e b u f n h f f h n o i w s o o o p a t p s t s ' i ' 1 0
x - h t r e t . - e d t , ) t a e y o t h h a l 2 r r i n e i t h b u 6 n ; e a t t a a r f o e d y - m t h n b 3 ( e r i h a g r o d t s r o w p n f r i s i C I a , e t o e p b d h s d t w s e r a r o t o a r w n k o r c e o n o r s h i p e o g r n o n e a r w o n w i . i p d t e t o s e h t n e . , i o m t d w a d a s o n h d l t e n s d w n s t r e a t n a p o o l r f v o l e a l t o o o c p r w e o t l , t e h , p r h h o o r d t t s e g t d e l e ) e n m , h n i r l f r e s o t ( t i e t i u m e o f i d r t e r b d n t r l h . 1 4 i o l s t b f a i t o l o n i l e u n r o e o e u a u d s b o e p m r h b a s w n f n i , h c w I o e o t o t a e l r d e h i w i e e s n o h h d w n w u e t o h t n r o t s b e r e l l w r a n h n h t n o e e m e H w T e I p p d t o d e s . e n g s e m e n . . b a n g h o h 1 n h 9 0 a t l r l a i 4 5 5 t t c ' s t m o 4 n 4 a m n h f f . 4 e p , . h e a t o y o ) . h o d r t d l T a T e a e t R g p e e , d e 3 R s s m n y l c n c 6 n A A e i a i a e l a l e i 3 ' l r u h h c p t m t p p p ( i - b
OUTLINE OF PHILIPPINE CIVIL LAW
OUTLINE OF PHILIPPINE CIVIL LAW
ART. 452.
The builder, planter or sower in bad faith is entitled to reimbursement f or the necessarv expenses of preservation of the land. (n ) . ART. 453. If there w as bad faith, not only on the part of the person who built, planted or sowed on the land of another, bu t also o n the part of the owner of such land, the rights of one and the other shall be the same as though both had acted in good faith. It is understood that. there is bad faith em the part of the landowner whenever the a c t was done with his knowledge an d without opposition on his part. (364a) ART. 454. When the landowner acted i n b ad faith and the builder, planter or sower proceeded i n good faith the provisions of article 447 shall apply. (n ) ART. 455. If the materials, plants or seeds belong to a third person who has not acted in bad faith, the owner of the land shall answer subsidiarily f or their value and 'only in the event that the one who made use of them has no property with which to pay. This provision shall not apply i f the owner makes use of the right granted by article 450. I f the owner -of the materials, plants or seeds has been paid by the builder, planter or sower, the latter ma y demand from the landowner the value of the materials and labor. (365a) ART. 456. In the cases regulated i n the preceding articles, good faith does not necessarily exclude neg ligence which gives right to damages under article 2176. (n )
42
I.
Basic cOnceptsA . Good faith in the Builder (Planter, Sower) lies in his belief that the land belongs to him , and his igno rance of any defect or flaw in his title (Alburo vs. Villanueva, 7 Phil. 277) . a. Bu t good faith, when coupled with negligence, does n ot exclude liability f or damages under Art. 2176 (Art. 456). B. Good faith of t he Owner lies in his ignorance of th e Builder's act s, or belief that the Builder, etc., has th e right to construct, plant or sow. I n t he con trary cas,e, the Owner is i n bad faith. C. Bad faith in the Builder (Planter, Sower) lies in his knowledge of his lack of title a nd absence o f 'permis sion of th e Landowner.
II. Rulings and comments A A. U nder Art. 448, i t is th e Landown er who h as t he r i gh t to choose between acquiring th e improvements and selling t he land (Acuna and Diaz vs. Furukawa, Plantation Co., GR No. L-5833, Oct. 22, 1953). B. Under Art. 448, the Landowner may n ot refuse both to p ay fo r t he building an d to sell th e land and instead, seek to compel th e owner of th e building ,to remove th e building from t he land. T he Landowner i s entitled to such removal only when, after having chosen to sell th e land, t he other party fails to pay for said land (Ignacio vs. Hilario, 43 OG 140) . C. Title to th e accessory does not pass until payment therefor (TS 2 Jan. 28; 21 May 28). D. Under A rt . 448, failure of t he Builder to pay for the land destroys th e right of retention (Bernardo v s . Bataclan, 66 Phil. 599) unless t he value o f t he land is , considerably higher. E. Time of payment: as agreed by t he parties o r as fix ed b y th e Court (Bataclan vs . Court of First Instance, 61 Phil. 428). 43
OUTLINE OF PHILI,PPINE CIVIL LAW
OUTLINE OF PHILIPPINE CIVIL LAW
F. The Builder's right to indemnity is recordable'on the. certificate of title as a lien (Atkins Kroll & CO. VB . Domingo, 46 Phil. 362).
G. In case of successive alienations of the land , the reco very of the indemnity by the Builder, Planter, or Sower should be from the present owner if acquired by him in bad faith ' (Gongon vs. Tiangco (CA) 36 OG 822). H. Article 448 is not applicable where a person constructs a house on his own land and then sells the land but not th e building. In this case, the owner of th e build ing may remove it, and the owner of the land has no obligation to pa:y compensation for the house (Co leongco vs. Regalado, et al., 48 0G 5282). I. The provisions on "industrial accession" imply that the Builder, Planter, or Sower in good faith has a claim of title, hence, is a possessor in good faith (Alburo v. Villanueva, .7 Phil. 277). .
J. Article 448 does not apply where th e relation between the parties is that o f usufruct (Manresa). See Arts. 579, 580. .
K.
,
If th e Builder builds with th e permission of t he Land-.
owner, they are treated as both being in good faith. Actuaily, they are both in bad faith. (Bernardo VB. Bataelan, 66 Phil. 598; De Guzman vs. Fuente, 55 Phil. 501). L. Article 448 cannot be invoked in a case where 'a , c o owner builds, plants, or sows on the land owned in common (Abicida Vda. de Arias vs. Aguilar (CA) 40 OG (5th Supp.) 126). M. A is neither a Builder i n Good Faith, nor in B a d Faith. (Alburo vs. Villanueva, 7 Phil. 277). His rights are governed by Art. 1678. N. Article 449 applies to standing crops only (Dizon Rivera, CA, 39 OG 1744), not gathered fruits. 44
VB.
III. Table o f Rights and Obligations-A. WHERE THE LANDOWNER IS NOT THE IM PROVER. Builder, Planter or Sower and Owner of Materials
Land owne r
Good Fa i th
Good Faith 1. Landowner ' ha s OPTION to (Art. 448): a. Sell land to Planter or Builder or collect rent from Sower; v al ue o f l a nd is considerably more. than that of building or trees in which case builder or planter to pay rent under terms fixed by parties or Court (Art. 448) OR h. Acq uir e improvement upon paying indemnity. aa. Indemnity to be either: (1) Or i ginal cost of improvement (not ornaments) or (2) Increase in value ' of whole (Plus value) (Arts. 546, 548).
1. In (b), builder has right to R E TA I N u n ti l indemnity paid and ca n n ot be required to p a y r e n t (Tufexis vs . Chunaco,36 OG, 2455; Mi randa vs. Fadullon and Se garra 51 OG, No. 12, 6226).
Bad Fa i th 1. Lose them without right to indemnity.
Good Faith 1. Option to: a . A c qu i re i m pr o ve m en t s, without paying indem nity, a nd collect damages j or b. Sellla '.1d to Builder , Plant er, or rent land to Sower, and collect damages in both cases; or
2. Recover necessary expenses for preservation of land. 3. Pay damages to landowner (Arts. 449, 450, 451, 452).
45
l ec t d am ag es from ( A r t s . 546, 449).
3. Without subsidiary liability fo r cost of materials. 1. Option to : a. Acquire improvement w l o paying indemnity an d coilect damages, o r b. Demolition or restoration,_ an d , coIlect damages; or c. SeIl to B 61' P, or rent to S, a nd cofIect damages. 2: Pa y necessary expenses to B, ' P or S (Arts. 449, 450, 451) .
Ba d Fai th
1. Recover necessary expenses of land. fo r 2. Loses improvements without right to indemnity from LO (Art. 452) unless LO seIls land.
Ba d Fa it h 1. Recover 'value from B, P or S (a s if · both in G. F . ). 2. If B, P or S acquires ' improvements, remove materials if feasible 'without in ju ry (Art. 447). 3. No action against LO. Ma y be liable to LO fo r damages.
Ba d Faith (Same . as when all acted i n good faith (Art. 453) .
Ba d Faith
Good Faith
Good Faith
Ma y remove improvements. 2. Be indemnified fo r damages
1. Remove materials if ,possible without injury.
Ba d Fai th 1. Acquire improvements after paying indemnity and dam-
(OM)
hi m
Bad Faith
Good Faith
00
I
(8, P,S)
(LO)
1.
o
o
,
OUTLINE OF PHILIPPINE CIVIL LAW
,OUTLINE OF PHILIPPINE CIVIL LAW
III. Rulings and c
IV. Basic Principles. 1 . A., Rights between Landowner and th e \ B uilder,:.Planter , or Sower must be decided first before the rights of th e Material Owner can be determined. B. Th e owner o f t he materials i n bad faith loses h is ma terials, unless t he other parties a re also in bad faIth. C. Ba d faith o f one neutralizes that o f t he other. D.' T he party in b ad faith pays damages t o the party in good faith. , ' E. Th e owner of t he materials i n good faith collects from th e' builder a nd subsidiarily from th e landowner.
water, it belongs to the State (Govt. P.I. vs. Cabangis. 53 Phil. 112; K er & Co. vs. Cauden, 223 U.S. 2 6 8 ) .
B. Where the deposit is by
.
E. A gradual change of hed is also governed by t he r u l e s of alluvium (Can a s v s . Tuason, 5 Phil. 689).
1. Concept of alluvium: It is (1) th e gradual deposit of sediment (2 ) by natural action o f a current (3) of fresh water ( n o t sea water) ( 4) th e original identity of t he deposi.t being lost.
F. In th e sale of friar ; lands under Act No. 1120, where the government reserves title to t he land pending full payment of t he p u r c h a s e price, an y accretion received by the lot before the payment o f the last illstallment b e l o n g s t o the purchaser since the latt er has the be neficial and equitable title in th e property ( Dir. of Lands, et al. vs. Rizal GR L-292'5, Dec. 29, 1950) .
a. The ru le is applicable b y analogy to other instalment purchases of land.
II. Ownership is i n the riparian owner. A. Reason for the ' rule: a. To compensate t he ovvners for losses which they
,
.
D. Alluvial accession is no t barred by the reg.istrati on of t he land (Payatas vs. Tuason, 53 PhiL 55).
NATURAL ACCESSION ,
•
sea
C. Artificial alluvium i s penalized by Com. Act No . 383, if made without government authorit y.
ART. 457. To the owners of lands ajoining t he b an k s of rivers belong the accretion which they gradually receive from the effects of the current of the waters. (366) ,
may suffer by erosion; b. T o compensate them for th e burdens of legal easements which ar e imposed u p on t h e m c. Because it is the owner of the ' ccmtiguous land who can utilize t he incremeNt to th e best advant a g e (Manresa) ; and d. Because this is th e only feasible solution, since th e prev ious owners, can no longer be identified (Fal con).
omments-
A. "R iv ers": include creeks which have a regular cur r ent of water, bu t not canals and esteros which h ave no current bu t ar e merely artificial drainage outlets (Guison vs. City of Manila (CA) 40' OG 3835).
ART. 458. The owners of estates adjoining ponds or lagoons d o not acquire the la nd left dr y by the natural decrease of the waters, or lose that inu n dated by them in extraordinary floods. (367) I. Rulings and comments-A. This is not really a case of "alluvium" since not involve a deposit of sediment.
it does
B. The article refers to ponds or lagoons (i.e. small bodies of shallow water, usually fresh, fed by floods, and
51
'
'
OUTLINE OF PHILIPPINE CIVIL LAW
OUTLINE OF PHILIPPINE CIVIL LAW
a.
bounded by elevations of land); it does not apply to lakes (i.e. bodies of water formed in the depres. sions of the earth, f ed by fresh water coming through rivers, brooks, or springs). Lakes ar e governed by Art. 77 of t he Spanish Law of Waters which states:
,
. ,
,
ART. 461. Rivel' beds which are abandoned through the natural change in the course of the waters ' ipso facto belong to the owners whose lands ar e occupied by the new course i n proportion to the area lost. However, the owners of the lands ad joi ni ng the aIel bed shall have the right to acq:uire the same by paying the value thereof, which value shall not exceed the value of the area occupied by ' the new bed. (370a)
"Lands accidentally inundated by th e waters of lakes. or b y creeks, rivers and other streams, shall continue to be the property of their respective owners." (Govt. vs. Colegio de S an Jose, 53 Phil. 423). a. The true reason lies in th e absence of alluvial deposit in th e cases governed by A r t . 458.
ART. 459. Whenever the current of a river, creek or torrent segregates from a n estate o n i ts bank a known portion of land an d transfers i t to another
1. Requisites
of "change of bed": A. It must b e sudden, so t he old river b ed can be identi fied; otherwise we apply t he rules of alluvium (unless th e river disappears, when abandonment applies) See III, E, p. 51.. B. The change must be permanent: th e rule does no t apply to temporary overflowing (France, R equetes, 26 Feb. 1896).
estate, the owner of the land to which the segregated por tio n belonged retains the ownership of it, provided that he removes the same within two years. (368a) ART. 460. Trees uprooted and carried away by the current of the waters belong to the owner of the land upon which they ma y be cast, if the owners do not claim them within six months. If such owners claim th.em, they shall pay the expenses in curred i n gathering them or putting them in a sare place. (369a) th e deposit is of known (identifiable) portion of land (avulsion): th e original owner retains the title, except in case of (a) abandonment or (b) expiration of 2 years. .Avulsion is, therefore, a case of "delayed acces-
be an abandonment by the owner of th e bed, i.e., a decision h ot t o bring back the river to t he old bed (Panlilio vs. Mercado, 44 Phil. 695).
C. T h e r e must
I. Where
sion." II. In case of trees carried by th e floods, th e landowner may remove them and place t h e m in a safe place right away; he need not wait six months to make use of his land. 52 ,
of the trees claims them within six months, he must pay th e expenses of removing and safekeeping (Art. 460).
If t he owner
,
According to Dean Capistrano, th e words "ipso facto" were introduced in the new Code in order to repudiate th e ruling in th e case ofPanlilio vs. Mer cado. The validity of this Qbservation m ay be doubt fu l. T o illustrate: Suppose th e government spent huge sums for the building of a dam f or t he benefit of the public. Then a change of bed occurs. Would not the government b e entitled t o bring back th e river to th e old course? It would seem unreasonable to require t he government to go through th e process of eminent domain proceedings before doing so.
OUTLINE OF PHILIPPINE CIVIL LAW
D. The change of bed must be natu ral otherwise, the bed may be . th e subject of a state grant (Manresa, Sanchez Roman) , ..
II. Under the old Code, it was ruled that if the river dries up entirely (Pinzon vs. Rama (CA) 2 OG (PEC 307), the old bed accrues to the riparian owners i f t he government does not claim it , Th e solution under the present rule would seem to favor the retention of ownership of th e b ed in t he name of t he government, since there is injury to private parties.
no
III. Th e rule of our present Art : 461 is that of Art. 563 of the French Civil Code. It is interesting to note that by a La w of April 8, 1898, th e French abandoned such rule as impractical, an d 'adopted that of ou r old Civil . Code (1889) Art. 370, granting t he abandoned bed to t he old riparian owners. We have reversed th e process. ART. 462. Whenever a river, changing its course by natural cau ses, opens a new bed through a private estate, this bed shall become of public dominion. ( 372a) ART. 463. Whenever th e current of a river divides itself into branches, leaving a piece of land or part thereof isolated, the owner of the Land re ta ins his ownership: He also retains it if a portion of land is separated from the estate by the current. (374) ART. 464. Islands which may be for med on the seas within the jurisdiction of the Philippines, on lakes, and on navigable or floatable rivers belong to the State. (371a) ART. 465. Islands which through successive accumulation of alluvial deposits are formed in nonnavigable and non·floatable rivers, belong to the owners of the margins o r banks nearest to each of them, o r t o the owners of both margins if t he island is in the middle of the river, in which case it shall
54
OUTLINE OF PHILIPPINE CIVIL LAW
be divided
longitudinally in halves. If a single island thus formed be more distant from one mar gin than from the other, the owner of the nearer margin shall be the sole owner thereof. (373a)
I. Rules on "formation of islands." A. Requisites : Formed by deposits not identifiable (accumulation of sediment) (Art. 465) . B. Ownership: a, Formed by th e sea — 1) Within territorial w a t e r s — t o th e STATE (Art. 464). . 2) Outside territorial waters — to th e first OCCUPANT ( v . Public Interna·tional Law). b. Formed in lakes o r navigable or f loa ,table rivers: to the STATE (Art. 464) . 1) The Government shall declare what rivers a rc navigable or .floatable (Law of Waters, Art. 175). 2) Rivers ar e navigable in la w if navigable in fact for some purpose beneficial trade or commerce (U.S. vs. Oregon, 295 U.S. 1; State vs. Aucoin (La. 20 So. 2d., 1 3 6) . c. By non-navigable or non-floatable rivers: 1) Equidistant from both banks (measured from th e island's margins)—to t he ripari an owners, by halves. '. 2) Nearer one margin or bank: to the nearer riparian owner. (Art. 465). . C. Formation o f island by branching o f a river: There i s no accession; the owner retains ownership of the isolated piece. (Art. 463). Section 3.- Ri gh t of Accession with Respect
to Movable Property ART. 466. 'Whenever two movable t hin gs belonging to different owners are, without bad faith united i n such a way that they form a single object, ..
, h r n d - y e a c e e e s a t p n u v u e e a r s m e m w o o s h , e t p b r e n e r r o h n o , o n i t f r t c a w e , a n c o d h r i e t g a d n p n e t e i o i t v n h e e i i u e t s e n t h t l s b u c e g a i t s s p n f a ) p i s g e h o i h n r t c d 8 i n n n 7 h i 3 r e o t i ( i r a h h t e . t c p m e h c . h e e e i y e t t n h f o d r s r h r , i a w t u e t e y j c a y p v r o r n n a t i e j u a n r a n i o h e e n p t m g e , n h i s t s r i m s t r s o n u e h s W e u t i e l o m . e o r e i e e 9 h m c r h o t h t h 6 t h e i f f s r t f 4 d r i e u . w n v l p h e l T a e e e h g s R d t u y b r N A e a t m o e m f o a t m r d e m o h s i
W A L L I V I C E N I P P I L I H P F O E N I L T U O
t i
. - e h - c r b t e o . i l c j a b l n o a f i e h s d e h h o t f i o e h t t s a l o g l e t t s t a e e f g r a u f o u d e a h f e o h o h e a h h , t d o t g e h n h t h t b s f u r a h s d n r i t c t i w a y o e b o r n o o m i f n d o i n o m r w e t o e s a r t r v d e v a e e v r a n i e s n t e d t n t h e i h e i d h o e u t c h h c n l n t e , w t d a y e a t g s a , r a o d d r a e g i p w r a v u e r e r o . e o o o e m t i h n s t t f s g s e n d c a a r t h t , e p e p o r r a h t i e w s e r b r h t e a y g h l e o t o r o i a y c c f s s l v m p s a e h n n i e a a a i e a e w r i s o h s c m p h h s e i n g h i a h n t g t k u d v e g m a c l g e e h c , l o b t e h f r t n e e r a i n n o o o e e o n d m h i h n t i e e h n a w r m b f e h t h i t s h d t i d p s y a e n h n o a h y a e o e e g p i b e o t W t n i e d ; m n r o t h h t d i r i o h t t 0 t n w h e e 7 s e n r e f h g . n t e n h 4 a s i m n o o h o t m a n i t e e i f ) i r o h t y f . o t r r o g s ; d e i o m a a T g l t o r g e n f o p n i n f a n e 9 g g f n o R n l l i s 7 n I s e l r i I r o t a l i h A e 3 o i w e h e u e b i h h h t s o t o c t b p t b p t d ( - n g i e c s l l e l h a l e a e h y a n a t p h h r h t i i e t i p o h s e t , e c i s h w t r c s s h v . n o m t t a i d e e f r e e r i r c h b h h f t h p e c a p e r t
t i
. - e l l n a e l c i i a i d r r e n n p t e i a a h e t ) d h m o t . i n n t 0 n 8 e t t a , 3 i h s ( e h i g t u e i s l s . f r n a l l e a o a o v s c r i r d o a e s S a I n , r n h a h p t d w t t e d o n a n y p a o t i e l e s h r k t p h e t n n m p d o i r e x n l t e e c a a s m u a o v e i t h e q h n t d e t e g o h u n y g t i o a n d , W h i s r t m t h i o . t c e e c 1 w 7 a p c a 4 d h , s f , y e o . e t r f i T y o o n y r e R l r e p e A m v h r e e t h m e d i l o t
7 5
OUTLINE OF PHILIPPINE CIVIL LAW
OUTLINE OF PHILIPPINE CIVIL LAW
I. Summary of the rules of ADJUNCTION: A. Generally, th e Accessory follows the Principal. a. Determination of the principal thing: Tests— Arts. 467-468) in the order of their application: 1) Intent: that to which another is united as ornament, or for i ts us e o r perfection is deem ed th e principal. i) The heart of th e motor vehicle, the en g in e, i s th e principal, and the rest is th e accessory (A. C. Ransom v. Puzon a n d Lazo (CA) 49 OG. No.2, 598). 2) Value: th e thmg of greater value is consider ed t he principal; 3) Volume: if .the values ar e equal, that of greater volume IS th e principal. b. Adjunction in good faith by either owner: 1) Generally accessory follows principal (Art. 469) EXCEPT: i) If t he accessory is much more precious than the principal, the owner of t he ac cessory ma y demand th e separation even if t he principal suffers some injury (but not destruction) (Art. 469, par. 2 ). c. Union b y t he owner of t he principal acting i n bad .faith
1) Option of th e owner of the accessory (Art. 470, par. 2) : — . i) To recover the value plus damages; or II) To demand separation (even to the ex tent of destroying the p.rincipal) plus . d. Union
by t he owner of the accessory in bad faith . 1) He loses the accessory. 2) He is liable for damages (Art. 470). 58
ART. 472. If by the will of their owners two things of the same or different kinds ar e mixed, or if the mixture occurs by chance, a nd in the latter case the things a re n ot separable without injury,each owner shall acquire a right proportional to the part be longing to him, bearing in mind the value of the things mixed or confused. (381) ART. 473. If by the will of only one o wner, but in good faith, two things of the same or different ldnds ar e mixed or confused, the rights of the owners shall be determined by the provisions of the preceding article. I f the one who caused the mixture or confusion acted i n b ad faith, he shall lose the thing belonging to h im thus mixed or confused, besides being obliged to pay indemnity fo r the damages caused to the owner of the other thing with which his own w as mixed. (382) 1. Summary
of the rules of—
A. MIXTURE: a. By the will o f both owners o r by accident: (Art. 472) . 1) Each owner acquires an interest in propor t ion t o t he value of his material (resulting. in co-ownership) . i) This applies to sales from a mass of fungible goods (Art. 1464).
b. By one owner i n good faith (Art. 473). The rule is the same as in Par. a-I. c.
By one owner in bad faith (Art. 473). 1) He loses all rights to his own material; and 2) He is answerable fo r damages. .
d. By a common agent (same as Par. a): Warehouse Receipts Law (Act 2137). 59
See th e
OUTLINE OF' PHILIPPINE CIVIL LAW
ART. 474. One who in good faith employs the material of another in ,whole .01' in part i n order to make a thing of a different kind, shall appropriate the thing thus transformed as his own, indemnify ing the owner of the material for its value. If the material is more precious than the trans formed.thing o r i s of more value, its owner may, at his option, appropriate the new thing to himself. after first paying indemnity for the value of the work, or demand indemnity f or the material.
If in the making of the thing bad faith intervened. the owner of the material shall have the right to appropriate the work to himself without paying- any thing to the maker, or to demand of the latter t ha t he indemnify him f or the value of t he materIal and the damages he may have suffered. However, the owner of the material cannot a ppropriate the work in case the value of the latter, f or artistic o r scientific reasons. is considerably more than that of the material. (383a) 1. Summary
of the rule s
of—
3) Exception: I f the m aterial is more valuable than the resulting thing, th e owner of th e mat erial has the OPTION — i) To acquire the work, indemnifying fo r . the labor; OR ii ) To demand .indemnity for the material.
in bad faith:
th e mater i al owner ha s the OPTION — 60
1) To acquire th e result without indemnity (due to the impossibility of separation) ; OR 2) To demand indemnity for the l material plus damages. c. Mater ial owner in bad faith
)
1) He loses the
material; and
2) He must p ay f or damages. ART. 475. In the preceding articles, sentimental value shall be duly appreciated. (n) 1.
Summary o f the rules of indemnificationA. Indemnity for the material, how paid : Either by—
(Art. 471)
a. Thedelivery of the same quantity, kind and qua lity; or b. The payment of t he value, a s .per expert appraisal. 1) In determining the value, sentimental value is to be taken into account (Art. 475). ' CHAPTER 3
A. SPECIFICATION (labor is th e principal) (Art. 474). a. Owner of the principal in good faith : 1) The maker acquires th e new thing; and 2) He must indemnify th e owner of th e material.
b. Owner of the pr incipal (worker)
OUTLINE OF 'PHILIPPINE CIVIL LAW
QUIETING OF TITLE (n) ART. 476. Whenever there is a cloud on title to real property or 'any interest therein, by reason of any instrument, record, claim, encumbrance or pro ceeding which is-apparently valid or effective but is in truth and i n fact invalid, ineffective. voidable. or unenforceabl2, and may be preiudicial to said title, a n action may be brought to remove such cloud or to quiet the-title. .
An action may also be brought to prevent a cloud from being cast upon title to real property or any interest therein. 61
OUTLINE OF PHILIPPINE CIVIL LAW
OUTLINE OF PHILIPPINE CIVIL LAW I.
The nature of the action: It is a n equitable action i n r em to determine' th e condition o f t he ownership or the rights to immo vabl e property, and remove doubts thereon .
II. Classes: . A. Preventive (Action quia t im et) — to preven t a future cloud (doubt) from being cast upon title t o real. pro·· perty o r an interest therein (Art. 476, par. 2 ). B. Remedial (Action to quiet title)-the action may be brought to remove a cloud or quiet title to real pr o perty or any interest therein, whenever: a. There is a present cloud on title that may be prej udicial to th e same. b. A cloud exists by reason of an y 1) Instrument (deed) or contract; or 2) Record; o r 3) Claim; or 4) Encumbrance; or 5) Proceeding; or 6) Obligation that is apparently valid or effective; . c. Bu t i n truth and i n fact, such instrument, etc., is 1) Invalid; or . 2) Ineffective; or 3) Voidable; or 4) Unenforceable; or 5) Extinguished or terminated; or
6) Barred b y extinctive prescription (Arts . 476, p.
1; 478).
ART. 477. Th e plaintiff must have legal o r equitable title to or interest i n the real property which is the subject-matter of the action. H e need no t be in possession of said property. ART. 478. There may also be an action to quiet title or r emove a cloud therefrom when t he contract
62
instrument or other obligation h as been extinguished or has termmated, or has been barred by extinctive prescription. ART. 479. The plaintiff must return to the defend an t all benefits he may have received from the lat ter, or reimburse him fo r expenses that may have redounded to the plaintiff's benefit.
I. Summary of the ru les governing " Quieting of Tittle"— A. The plaintiff must have legal or equitable (benefi cial) title to, or interest in , t he ·real property w hi'ch i s the subject matter of th e action. . a. Bu t t he plaintiff need not b e i n possession of t he property (Art . 477). B. The action to quiet title does
apply:
not
a. To questions involving interpretation of docu ments (Trustees of Schools vs. Wilson, 78 ALR 21) .
b. To mere written or oral assertions of claims (Do). 1) Unless made in a legal proceeding (78 ALR 83) . 2) Or asserting that an instrument or entry in plaintiff's favor is n ot what i t purports to b e (78 ALR 55) .
To boundary disputes (78 ALR 58). d. To deeds by strangers t o -t.he title (78 ALR 288) unless purporting to convey th e property of the plaintiff.
c.
e. To instruments invalid on their face (78 A LR 69). 1) T he test i s : would the owner of the property in an action fo r ejectment brought b y t he adverse party be required to offer evidence to defeat a recovery? (Pixle y vs. Huggins , 15 Cal. 127). 63
OUTLINE OF PHILIPPINE CIVIL LAW
Title III.—CO-OWNERSHIP
1) A joint tenant can n ot sell his separate share ,
2) The interest of the deceased accrues t o t h e surviving joint owner.
ART. 484. There is co-ownership whenever the ownership of an undivided thing or right belongs to different persons. In default of contract; or of special provisions, co-ownership shall be governed by the provisions of this Title. (392)
3 ) T he disability o f o ne joint owner benefits t he others. (Tagarao vs. Garcia, 61 Phil. 5) .
II. Sources: A. Law (party walls, hedges an d ditches; between sur viving spouse and heirs of deceased).
I. Concept-It exists
where t he ownership of a thing phy sically undivided pertains to more than one person. Hence,
it is define d
i
B . Contract.
as—
.
C.
"The right of common dominion which tw o or more persons 'have in a spiritual part of a thing which is not Roman). physically divided" (Sanchez . ,
1) The Successional Estate is a co-ownership
D. Chance (conmixtion, hidden treasure). E. Occupation (hunting and fishing: Punzalan vs. Boon Liat, 44 Phil. 320).
III. Distinguished from partnership:
PARTNERSHIP
GO-OWNERSHIP
I
A A.
Is c reated by contra ct . only (except conjugal p ar t ne rs hi p ) . B. Has Juridical personalit y distinct from th e
B. Classes:
66
before partition (patrimonio unit a rio en transito) (TS 27 June 1949).
I
A. Characteristics: a. Each co-owner holds an ideal portion, definite in amount, bu t n ot physical1y identifled. b. Each co-owner has absolute control of his ideal share. c. Co-owners must observe mutual respect i n regard t o t h e use, enjoyment and preservation of th e thing as a whole. (Scaevola). Hence: "a co-owner has the right to freely sell an d dispose of his undivided interest bu t no right to sell a divided (definite) part ' of th e .real estate owned i n common" (Lo pez vs. I lustre, 5 Phil. 568-569). Multiple ownership of an undivided object ma y b e: a. Tenancy in com1non-invcilving a physical whole, an d ideal division; ownership by th e ipdividual coowners .r esults. b. Joint tenancy-involving a physical whole, and resulting in ownership in the group.
Succession (heirs before partition).
A.
members.
C. May be represented by an y partner (unless otherwise agreed). ) .
D. Ha s f or i ts purpose profit.
C.
Is created b y o th er sources be si d e s con tract. Ha s no jurjdical per sonality. Involves no legal repre sentation of other co owners.
D. Ha s f or i t s p urpose common enjoyment
67
OUTLINE OF PHILIPPINE CIVIL LAW OUTLINE OF PHILIPPINE CIVIL LAW
E . May not stipulate indivision fo r more tha n ,. 10 years (20 i f imposed b y t e st a to r , o r donor Art. 494).
E . M a y b e for more than 10 years.
F. May be dissolved by any partner's death.
F. Is not dissolved by the death of a co-owner.
IV. Duration: A. Contractual Co-ownershipAn agreement to keep a thing undivided for not more than ten (10) years is valid. This period may be extended by a new agreement (Art. 494) . a. New agreement means a contract entered into after the lapse of the first period of 10 y e a r s Otherwise t he limitation could b e easily defeated. B. Non-contractual Co-ownership-(See "Termination, " pos t, page 76-78). . ART. 48 5. The share of the co-owners, in th e benefits as well as in the charges, shall be pro portional to their respective interests. Any stipulation in a contract t o the contrary shall be vOId. The portions belonging to the co-owners in th e ' co-ownership shal l be presumed equal, unless the . contrary is proved. (393a) ART. 486. Each co-owner
may use the thing own provided he does so in accordance with the pur pos e fo r which i t is intended and in such a way as not to injure the interest of the coownership or prevent the other co-oWners from us in g i t according to their rights. The purpose of the .co-ownership may be changed .by agreement. ex p re ss o r implied. (394a) ed in common,
68
ART. 487. Anyone of the co-owners may bring an action i n ejectment. (n ) ART. 488. Each co-owner shall have a right to compel the other co-owners to contribute to the ex penses of preservation of the thing or right owned in common and to the taxes. Anyone of th e latter may exempt himself from this obligation by re nouncing so much of his undivided interest as may be equivalent to his share of the expenses a nd taxes. No such waiver shall be made i f it is prejudicial to the co-ownership. (395a) .
ART. 489. Repairs fo r preservation may be made at the will of one of the co-owners; b ut he must, if practicable, first notify his co-owners of the neces sity for such repairs . Expenses to improve or em bellish the thing shall be decided upon by a majority as determined in article 492. (n ) ART. 490. Whenever the different stories of a house belong to different owners, if the titles of ownership do not specify the terms under which they should contribute to th e necessary expenses and there exists no agreement on the subject, the following rules. shall be observed: (1) The main and party walls, th e roof and the other things used in common, shall be preserved at the expense of all the owners in proportion to the value of the story belonging to each; (2) Each owner shall bear the cost of maintain in g the floor of his story ; the floor of the entrance, front door, common yard and sanitary works com mon to 'all, shall be maintained at the expense of all t he owners pro rata ; (3 ) The stairs from the entrance to the first tory shall be maintained at the expense of all th e owners p r o r ata, with the exception of the owner 69
..
OUTLINE OF PHILIPPINE CIVIL LAW
OUTLINE OF PHILIPPINE CIVIL LAW
a. A co-owner m ay not exempt himself except by abandoning fo r t he benefit o f t he others so much of his undivided s hare as may be equivalent to his share i n t he expenses and taxes (Art. 488).
of the ground floor; the stairs from the first to the second story shall be preserved a t t he expense of all, except the owner of the ground floor and the owner of the first story; and so on successively. (396) None of the co-owners shall, wit hout the consent of the others, make alterations in the thing owned in common, even though benefits f o r all would result -therefrom. However, if the with holding of the consent by one or more of . th e coowners is clearly prejudicial to the common interest, the courts may afford adequate relief. (397a)
b. This abandonment does not require acceptance under th e old · Code; but should require it now, being a means to pay the advances made (datio in solutum, Art. 1245).
ART. 491.
of the rights of each co-owner as to the thing owned in common— A. To use it according to the purpose intended (which may be altered by agreement, express or implied) ; bu t — a. Without prejudice t o t he interest of t he co-owner ship; and b. Without preventing the use by th e other co owners (Art. 486). Hence, exclusive u se b y one co-owner entitles t he others to demand. a proportionate share of the proper rental (Pardell vs. Bartolome, 23 Phil.
may be no abandonment i f it i s p r ejudicial to the co-ownership (A.rt . 488).
c. There
D. Alterations:
To oppose alterations made without t he . consent o f all, even i f beneficial; but if the refusal is clearly prejudicial to the common interest, the Court may grant .relief (Art. 491). a. Alteration is any change injurious (to the thing or other co-owners) or material i n the use des tination or state of the thing; but "replacement" is not alteration (Enriquez v. Watson & CO., 22 Phil. 623). b. Consent of all th e co-owners is required (majority is not enough) ; it m ay be tacit or express. c. Expenses to i mprove or embellish a re decided by the majority (Art. 489).
1. Summary
450). B. To share in the benefits a nd charges i n propol,tion to the interest o f e ac h. A contrary stipulation .is VOID (Art. 485). a. Proportionality can not be altered b y stipulation, it being against the nature of co-ownership (Man resa). C. Repairs and Taxes: To compel the others to share in th e expenses o f preservation, even if incurred without prior notice, b ut h e must give notice if practicaclble (Art. 489), 70
E. To protest against seriously prejudicial decisions of the majority (see "Management") (Art. 491). F.
To defend t he co-ownership's interests i n Court. a. Anyone co-owner may sue for ejectment (Art. 487) . This rule reverses Palarca v. Baguisi, 38 Phil. 177.
G. Legal redemption: To redeem within thirty (30) days from written notice o f t he sale of a n undivided share of another to a stranger (Arts. 1620, 1623). Notice i s to be given by the vendor.
H. Partition: To demand partition any time (see "Termination") . (Art. 494) . . 71
OUTLINE OF PHILIPPINE CIVIL LAW I.
To the benefits of prescription: Prescription by one co-owner benefits all (Art . 1933).
J. As regards co-ownership of a building b y stories (ho rizontal co-ownership) (Art. 490) : a. To demand proportional contribution for the pre servation of the walls, roof and things used in common. b. Each story owner is to bear expenses of his floor. c. The stairs from story to story ar e to be main tained at th e expense of those using them. d. The individual stories are not owned in common.
OUTLINE OF PHILIPPINE CIVIL LAW C. Improvement
or embellishment (Art. 489).
II. What ar e acts of management? (Castan): They ar e those that—
A. Do not involve an . alteration (p. 71) ; and B. Are renewable, from time t o time; and C.
D.
Do not bind t he community f or a long time in the f u ture; and Do n ot give r ise to a real right over the thing owned in common.
The minority may appeal .to t he Court against the m a jor ity 's decision, if seriously prejudicial. Examples:
III.
Fo r the administration an d better en joy men t of the thing owned in common, the resolutions of the majority o f t he co-owners shall be bmd ing. There shall be no majority unless th e resolution is approved by t he co-owners who represent t h e controlling interest in t he object of the co-ownership. Should there be no majority, o r should t he resolu tion o f t he majority be seriously prejudicial to those interested in the property owned in common, th e court at the instance of an interested party, shall order'such measures a s i t may deem proper, in cluding the appointment of an administrator. . Whenever a part o f t he thin g belongs exclusively to one of the co-owners, a nd t he remamder is owned in common, the preceding provisions shall apply only to the part owned i n common. (398) ART. 492.
1.
The following ar e governed by a m a j o r i t y of interest (not of persons) : questions regarding-
A. Management (e.g. the custody of jewels owned in common-Lavadi a v . Cosme, 72 Phil. 196). B. Enjoyment. 72
A. When a n alteration is decided upon; B. When it is prejudicial to the rights of an individual
co-owner; C. When serious risk i s incurred;
D. When there is refusal to correct maladministration', E. When fraud is committed upon t he minority (Manre sa, Castan).
IV. A majority is not enough: for alteration, encum brance, disposition (Gala vs. Rodriguez, 70 Phil. 124). A. Long term lease (over 6 years) by a majority is void (Melencio vs. Dy Tiao Lay, 55 Phil. 100). ART. 493. Each co-owner shall have t he full own ership of his part and of the fruits and benefits pertaining thereto: and he may therefore alienate, assign 61' mortgage it, and even substitute another pers.on in its enjoyment, except when-personal rights ar e mvolved. But the effect of the alienation o r the mortgage, with respect to the co-owners shall be limited to the portion which may be alloted to him in the division upon the termination of th e co-ownership. (399) 73
0
OUTLINE OF PHILIPPINE CIVIL LA w 1. Rights as
. to ideal share of each co-owner: A. Each has full ownership of his part and of his share of the fruits and benefits (Art. 493). B. He may substitute another person i n i t s enjoyment except when personal rights ar e involved. .C. He may alienate, encumber or dispose of his (ideal) share (without prejudice to legal redemption by other co-owners) . . D. He may renounce part of his interest to reimburse necessary expenses incurred b y a n o th e r co-owner (Art. 389). E. Effect of a transaction by each is limited to hIS share upon partition. a. The transferee does n ot acquire a ny specific portion of t he whole until partition (Lopez vs. llustre, 5 · Phil. 567). b. Creditors of co-owners may intervene in th e partition or attack t he same i f prejudicial (Art. 499). c. . Bu t creditors can not a sk for its rescissjon, even . i f not notified, i n t h e absence of fraud. (Art. 497). F. These rules do n ot apply to t he conjugal community. (Refer to ·Vol. I) .
ART. 494. No co-owner shall be obliged to remain in th e co-ownership. ·Each co-owner may demand at a ny time the partition of the thing owned i n com mon, insofar as his share is concerned. Nevertheless, an agreement to keep the thing u n . divided fo r a certain period of time, not exceeding te n years, shall be valid. This term may be extend ·ed by a new agreement. A donor or testator may prohibit . partition for a period which shall no t exceed twenty years. . Neither shall there be any partition when it is prohibited by law. .
74
OUTLINE OF PHILIPPINE CIVIL LAW
No prescription shall ru n in favor of a co-owner or co-heir against his co-owners or co-heirs so long as ·he expressly or impliedly recognizes the co-ownership. (400a) ART. 495. Notw ithstandi ng the provisions of the preceding article, the co-owners cannot demand a physical division of the thing owned in · common, when to do so would render it unserviceable for the use fo r which it is intended. Bu t the co-ownership may be terminated in accordance with article 498. (401a) ART. 496. Partition may be made by agreement between the parties o r by judicial proceedings. Partition shall be governed by the Rules of Court in sofar as they ar e consistent with this Code. (402) ART. 497. The creditors or assignees of the coowners may · take part in · division of the thing owned in common an object to its being affected without their concurren . Bu t they cannot impugn any partition already executed, unless there has been fraud or in case it w as made notwithstanding a formal opposition presented to prevent it, without prejudice to the right of the debtor or assignor to maintain it s validity. (403) ART. 498. Whenever the thing is essentially in divisible an d the co-owners cannot agree that it be allotted to one of them who shall indemnify the others, ·it shall be sold and its proceeds distributed. . (404) . ART. 499. The partition of a thing owned in com mon shall not prejudice third persons, who shall re tain the rights of mortgage, servitude, o r a ny.othe.f real rights belonging to them before the division was made. Personal rights pertaining t o third per-
75
OUTLINE OF PHILIPPINE CIVIL LAW
OUTLINE OF PHILIPPINE CIVIL LAW
ii) W hen th e condition of in division is imposed by th e transferor (donor or testator) (not to exceed 20 years) (Art. 494).
sons against the co-ownership shall also remain in force, notwithstanding the partition. (405) ART. 500. Upon partition there shall be a mutual accounting fo r benefits received and reimbursement3 fo r expenses made. Likewise, each co-owner shall pay f or damages caused by reason of his negligence or fraud. (n )
iii) When t he legal nature o f t he communi ty prevents partition (party wall, irri-
gators' association). iv) When th e partition would render t he thing unserviceable (but t he thmg may be sold to divide t he price) (Art. 494).
ART. 501. Ev ery Co-owner shall, after partition, be liable f or defects of title an d quality of the por tion assigned to each of the other co-owners. (n )
I.
Ext inc ti on
2)
A. Causes-
a. Total destruction of th e thing. b. Merger of all th e interests. ' c. Prescription
(Adverse Possession):
By o ne co-owner.
But in this case,
i) Silent possession is not enough; be open a nd adverse.
o w n e r s
be brought t o the attention of the other co-owners (Mallari vs. Sunga, G.R. No. L-5043, Dec. 17, 1952).
iii) Possession of a cQ-owner is presumed not adverse (Laguna vs. Levantino. 71
Phil. 566). d. Partition
or Division.
1) When: It ma y be asked by any co-owner any time. Except:
at
i ) W h en there is a stipulation agains t i t (not over 10 years).
76 .
(see Rule
3) Effect: it must
ii ) Repudiation of the co-ownership must o
P rocedure for judicial partition 71, Rules of Court). . ship i) Determination of owner
by the court is indispensable to make. proper adjudication (Brownell v. Bautista, 50 OG No. 10, p. 4772).
1) .By a third person. 2)
v) When partiti6n is prohi.bited by law (f. ex., 'eonjugal partnershIp). •
of Co-ownership.
i) Partition confers exclusive title to each over his respective share (Art. 1091). ii ) Each owner shall be deemed to have exclusively possessed th e part which may b e allotted to h im upon t he division
fo r th e entire period of co-possession. (Art. 543). aa) Bu t this refers only to the exclusive po ssession of th e po r ti on alotted to each co-heir, no t to the shares o f t h e others which one heir buys off (Ramos Silos v. Luisa Ramos, G.R. No. L-7546, June 30, 1955). 77 .
OUTLINE OF PHILIPPINE CIVIL LAW
he r e a r is is e s a reciprocal warranty iii) T he against eviction an d loss of quality, in proportion to the sh a re s (Art . 501) . 501) . Except: a a ) W h en en there is a contrary stipulation; or ab) When eviction i s d u e to causes subsequeent to the partition or to subsequ the fault of the o ne evicted ( A r t s . 1092-1093) . affect ct the righ rights ts of iv) Partition does not affe strangers (Art. 499)
co-owners ers need not 4) Creditors Creditors of individual co-own be notified b ut they m ay object i f prejudiced: prejudiced: i) Howe However, ver, creditors can not ask for rescission (impugn) if no fraud was committed, or if formal objection was not made by them them (Art. 497).
Title
IV.-
SOME SPECIAL SOME SPECIAL PROPERTIES CHAPTER I
WATERS Section 1.-Ownership o f Waters Waters ART. 502.
The following ar e of public dominion: (1) Riv Rivers ers and and their their natural beds; of springs (2) Continuous o r iritermittent waters of springs and broo brooks ks running in their natural beds and the beds themselves; (3) Waters rising continuously 0 1' intermittently on lands of public dominion; (4) Lakes and lagoo lagoons ns formed formed by Nature by Nature on on public lands, and their beds; (5) Rai Rain n waters running through ravines or sand , beds, which ar e also also of public dominion; (6) Subte Subterrane rranean an waters on public lands; (7) Water Waterss found within the zone of operation of public works, eve even n if construct constructed ed by a contrac· tor; (8) Waters Waters risin rising g continuously or intermittently on lands belonging to private persons. to the State, to a province, or to a city or a municipality from the moment they leave such lands; fountains.,, sewers and (9) The waste waters of fountains. public establishmen establishments. ts. (407)
503. The following are of private ownerART. 503. ship: intermittent waters rising (1 ) Continuous or intermittent on l an an ds ds of private ownership ownership,, while running through the same; 78
79
,I OUT..LINE OUT L INE OF PHILIPPINE CIVIL LAW
OUTLINE OF PHILIPPINE CIVIL LAW
a. Running water:
(2) Lakes and lagcon lagcons; s; and their beds, beds, formed by Nature on such lands; (3 ) Subterranean waters found on the same; falling on said lands, as lon long g (4) Rai Rain n waters falling as they remain within the boundaries; (5) The beds beds of flowing flowing waters, continuous continuous or formed by rain water, intermittent, formed water, and those of br.oo.ks, crossing lands which are not of public dominio n. inion. or aqueduct, the water, beds, beds, banks In every d rain or aqueduct, banks floodgates shall be consid considered ered as an inte integral gral and floodgates part of the land or building fo r which the waters ar e intende intended. d. The owners owners of lands. lands. through which or along along the bou boundar ndaries ies of Which.. the the aqueduct aqueduct of.. Which passes, passe s, cannot claim ownershIp ownershIp over over it ny right it o r a ny to the use of its bed or banks, unless· unless· the claI claIm m is based on titles of ownership specifying the right or ownership claimed. claimed. (408)
1) Rivers a nd their natural channels (Art . 502 [1]) ; 2) Continuous and inte intermit rmittent tent water from
springs a nd brooks, running springs a in natural running in natural channels and the channels themselves (Art. 502 [2]) . B. Waters public or private according to their bed bed (accessory to bed) : a. Subterranean waters (Arts. (Arts . 502 [6], 503 [3]); b. Subterranean waters rising t o t he surface continuously or intermittently (Arts. 502 [3], 503 [1] ; c. Non-running water (lakes a nd ponds) (Arts. 502 [4] and 503 [2]); d. Rain water (Arts, 502 [5J, 503 [4]) even i f flow flowin g (Art. 503 [5]). C. Waters public by special provision:
1. Laws governing waters:
A. The Civil Code of the Philippines. B. The Special La w of Waters of of August 3, 1866, extended to th e Philippine Philippine Islands on September 24, Law of Waters o f f June 13, 1879 was never 1871 (the Law of in force here: Montano vs. Insular Govt. 12 Phil. 572). C. The Irrigation Acts, Act 2152 and i ts amendments.
D. The Water Power Act, No. 4062. E. Art. XIII of the Philippine Constitution, which provides that sources of potential energy ar e reserved to the State. II. Classification of of Waters Waters (Public (Public and Private). A. Waters public p er se (water i s t he principal; t he b ed follows th e character of the water). ,
80
:,1
a. Waters Waters in zones of of public w01' ks, ks, even if if constructed under contract (Art. · 502 [7]) ; b. Private water after r leaving the estate of of origin (Arts. 502 [8], 507, 514) ; c. ·Waste water of fountains, sewers, etc. (Art. 502 [9]) . Section 2.-The
Use
ART. 504.
of Public of Public Waters
The use of public public waters is acquired (1 ) By administrative concession; (2 ) By prescription for ten years. The extent of the rights and obligations of the use shall be that established , in the first case, by tth e terms of the concession, and. in the second case, by the manner an d form in which the waters have been bee n used. used. (409a) 81
OUTLINE OUTLI NE OF PHILIPPINE CIVIL LAW LAW
OUTLINE OUTLIN E OF PHILIPPINE CIVIL LAW
ART. 505. Every concession f concession f or the use of waters
. is understood sons. son s. (410)
to be
without prejudice to third per.
ART. 506. The right to make use of public waters is extinguished by the lapse of the concession and by non-user f or five years. years. (411a (411a)) I. Acquisition and use of of public waters A.
How acquired: a. By administrative concession. 1) Under th e Irrigation Irrigation Acts, Acts, by the Director of Public Works, with the approval of th e Department Secretary. 2) Fo r water power, by legislative legislative franchise (Act 4062). b. By prescription (of 20 years under th e Spanish Civil Code): reduced to 10 years by Art. 504; (But see (But see th e Irrigation Acts).
B.
How lost: a. By t he lapse o f th e concession or franchise; b. By nOll-user f or .5 years years (Art. 506).
C. Except for water power, water power, beneficial beneficial use is t he measure
and limit of th th e grant (Phil. Const. Art, Const. Art, XiII, Sec. 1 ). Section 3.-The
Use o f Waters o Waters o f Private
Ownership
ART. 507. The owner of a piece of land on which a spring' spring ' or brook brook rises, be it continuous or inter mittent, may us usee i ts waters while they r un through th..e same, but after the waters leave the land they th shall become public. and their and their use shall be governed by the special Law o Law o f W aters of August 3, 1866. and by the Irrigation Law. (412a (412a)) . 82
508. The private owne ownersh rship ip of the be beds ds of ART. 508. r ain ain water does not give a right to make works or change their course to the constructions which may may change their damage of third persons, or whosedestruct whosedestructiol1. iol1. by the force of floods, ' floods, 'may may cause such such damage. (413) one may enter private ' property to ART. 509. No one se..arch se a rch waters or make use use of them without permis permis as prov p rovide sion from the own owners ers.. exc except ept as ided d by the Mining Law. Law. (414a) . ART. 510. The ownership which the proprietor of of land has over the w aters rising thereon a piece of does not prejudice the the rights which the owners of ' ' lower estates may have legally acquired to the use thereof. ther eof. (415) ART. 511. Every owner of a piece of land has the reservoir rvoirss right to construct within his property, rese fo r rain waters, provided he causes no damage to the public public o o r to third persons. (416) I.
Use of of waters o f f private private ownership: A. It is exclusive sive while insid. insid.e t he estate of origin origin (Arts. i s exclu
507, 509). One must obtain th e owner' owner ' s cons consent ent to search fo r 509, 512) 512) , , except as provided in the water (Arts. 509, Mining Law. C . T he overflow IS public in character (Arts. 50 507, 7, 514. 502 (8). D. It must not be u sed to the damage of other persons (Arts. 50 508, 8, 510, 515). to be maintained by all t he ownE. Defensiv Defensivee works are to be ers benefited benefited in propor proportion tion to their respective respective in terests (Art. 517). B.
Section 4.-Subterra:nean Waters
ART. 512. Only the owner of a piece of of land, land, or another person with with his permission, may make ex plorations-- thereon fo r subterranean waters. plorations waters. except Mining Law. as provided by the the Mining 83
OUTLINE OF PHILIPPINE CIVIL LAW
OUTLINE OF PHILIPPINE CIVIL LAW
Explorations for subterranean waters on lands of public dominion may he made only with the per mission of the administrative authorities. (417a) I. The
Mining
La w is
ART. 518. All matters not expressly determined by the provisions of this Chapter shall be governed by the special Law of Waters of August 3, 1866, and by the Irrigation Law. (425a)
now C.A. No. 137.
ART. 513. Waters artificially brought forth i n accordance with the special La w of Waters of Aug us t 3, 1866, belong to the person who brought them up . (418) ART. 514. When the owner of waters artificially bro ug ht to the surface abandons them to their na tural course, they shall become .of public dominion, (419) Section 5. - General Provisions
ART. 515. The owner of a piece of land on which there ar e defensive works to check waters, or on which, due to a change of their course, it ma y be necessary to reconstruct such works, shall be obliged, at his election, eith er to make the necessary repairs or construction himself, or to permit them to be done, without damage to him, by the , owners of t he lands which suffer o r ar e clearly exposed to suffer . injury. (420) ART. 516. The provisions of the preceding article ar e applicable to the case in which it may be neces sary to clear a piece of land of .matter, whose ac cumulation or fall may obstruct the course of the waters, to the damage or peril of third persons. (421) ART. 517. All the owners who participate in the ben efi ts arising from the works referred to in the two preceding articles, shall be obliged to contribute to' the expenses of construction in proportion to their respective interests. Those who by their fault may have caused the damage shall be liable f or the expenses. (422) . 84
CHAPTER 2
MINERALS
ART. 519. Mining claims and rights and other matters concerning minerals and mineral lands ar e governed by s pecial laws. (427a) I. Laws governing minerals: A. Before 1902: R. D. sobre Mineria (Royal Decree on Mining) of 1867; B. Between 1902-1936: The Philippine Bill of 1902 and Legislative Acts;
C. After the advent of t he Commonwealth: The Philip pin e Constitution, Art. XIII, s. 1, and Com. Ac t No. 137. II. Ownership of mineral lands is reserved to th e state (Re galian Doctrine). (Phil. Const. Art. XIII, Sec. 1) .
Expl oit ati on and develo pment is limited to citizens or corporations or associations with at least 60 interest owned b y citizens (modified by the Parity Amendment).
%
III. Location: A.
Entry into private land must be with th e owner's consent or upon compensation fixed by th e prospec to r and owner, or the Director o f Mines, or by th e Court.
B. Basis of this location is "discovery" (finding) of mi . neral, bu t th e location must be within 30 days from
discovery. 85
OUTLINE OF pmUPPINE CIVIL LAW
OUTLINE OF PHILIPPINE CIVIL LAW
c. Procedure:
F. Mining Leases:
a. Lode claims
(original ·formation
in rock) ;
-
1) The claim should be r ectangular as fa r as possible.
a. The lease should be obtained within 4 years from location.
2) Size of th e claim: Fo r metals-9 hectares for each locator. Fo r precious stones-4 hectares fo r each lo- . cator. Fo r salines an d mineral waters-4 hectares fo r each locator. .3) The steps to be followed in "locating":
b. Th e area is n ot to exceed t he following:
Fo r lode metal claims---450 hectares; 250 claims in th e whole Philippines. Fo r placer metal claims-400 hectares for each individual; 3200 hectares f or associations. Fo r precious stones: 40 hectares pe r individual; 320 hectares fo r associations. Fo r salines and .mineral waters-24 hectares per individual; 320 hectares fo r associations.
i) Mark the discovery post;
ii ) Mark th e direction of th e vein ("loca
tion line") by posts an d notices; iii) Mark the boundaries a nd corners of t he
Fo r non-metals--45 0 hectares.
claim, with corner notices.
c. Annual assessment work must be at least P200 worth p er claim p er year. .
b. Placer claims: (ore in loose or broken forma tion)1) The claim m ay b e irregular in shape. 2) The size: 8 hectares pe r person; 64 hectares fo r associations or corporations. 3) Location: Th e boundaries a nd corners of t he claim must b e marked. D. Registration must be made, within 60 .days from location, ofa. Declaration of location;
The period provided by law is 25
years renewable f or 25 years more.
G.
Oil an d gas:
(Act 2932) —
. a. Leases:
.
1) . Blocks of 400 hectares fo r individuals; 1 200 hectares f of associations. :.
.
2) The maximum number is not more than 60 blocks. 3). The duration of th e lease is from 1 t o 5 years subject t o renewal,; .
b. Affidavit of posting of legal notices;
c. Proof of locator's citizenship or 60 % interest be longing to citizens. E. Number o f claims: The law limits these t o n ot more than three pe r vein or placer ground. 86 ,
b . Kinds of leases :
1) Fo r geological."exploration " (preliminary in nature) ; 2) Fo r "drilling" and · prod ucti on. 87
OUTLINE OF PHILIPPINE CIVIL LAW
OUTLINE OF PHILIPPINE CIVIL L AW CHAPTER 3
TRADE-MARKS AND TRADE-NAMES
ART. 520. A trade-mark or trade-name duly r e gistered i n t he proper government bureau or office is owned by and pertains to the person, corpora tion, or firm registering the same, subject to the pro visi ons of speci al laws. (n ) ART. 521. The goodwill of a business i s property, an d ma y be transferred together with th e right to use the name under which t he business is conducted. (n ) ART. 522. Trade-marks a nd trade-names a re gov erned by special laws. (n ) I. Trade-Marks, T 'r ade-Names and Service Marks (Rep. Act No. 166). A.
A person m ay acquire a right to t he exclusive use o f: A Trade-Mark — a design, word, name or symbol to distinguish one's goods from those of another. A Trade-Name — a n appellation to distinguish the bus ines s, voc atio n or occupation of .one. A Service Mark — one used to distinguish services otner tnan trade or commerce.
B.
These must be registered at the Patent Office.
a. Registration must be based on priority o f actual
C. Registration shall no t be granted, unless they have be Come distinctive, in cases of— Immoral, deceptive, scandalous or disparaging matter; b. Thos e whic h falsely suggest connection with persons, institutions, beliefs o r symbols; c. The n,ational flag coat o f arms o r insignia of a ny nation; d. The names, portrait, o r signature o f a living per son, without his consent, or of a d eceased President without t he consent of his wido w; e. Resemblance to some other trade-mark, likely to cause deception t o customers; .
f . Merely descriptive, geographically descriptive or deceptively descriptive terms; g. Surnames. D. Duration o f th e privilege: The protection granted is fo r 20 years renewable f or 20 year periods upon ap pli cat ion within 6 months from expiration. E. Registration is subject t o cancellation f or : a. Becoming a common descriptive name; b. Abandonment; c. Fraudulent or illegal registration; d. Use to misrepresent t he source o f goods. F. Remedies f or infringement:
class of
a. In j unction; b. Dam age s con sis ting of— 1) Reasonable profit lost to the complainant; o r
c. The application a nd certificate of registration a re to be published in the Official Gazette.
2) Actual profit made by the infringer. 3) In case of actual fraud, double damages ar e assessed.
use. b. There should be one application f or e ach goods and services.
88
89
. \ OUTLINE OF PHIL1PPINE CIVIL LAW
OUTLINE OF PHILIPPINE CIVIL LAW
G. Unfair competitiona. Consists of passing off one's goods as those of another by means country to good faith. Par ticularly1) Imitating t he general appearance of goods;
2) Inducing th e false belief that th e goods or
.. services offered .are those of another; 3) False statements in th e course of trade to discredit another. H. Fore ign r egistrant s must belong to a nation which is a party to an international treaty or convention on trade-marks, trade-names or repression of unfair · competition. . I
Goodwill includes every positive advantage arising ou t o f t he business of t he ol d firm, whether connected with the premises, o r name, or with any other matter carrying with it t he business of t he ol d firm (see 2 4 Am . Jur . p . 803).
TitleV-POSSESSION CHAPTER 1
POSSESSION AND TH E KINDS THEREOF .
ART. 523. Possession is the holding of a thing o r th e enjoyment o f a right. (430a) pos sedere, "to be settled:") Possession is the material holding or control. o f a thing (possession proper) or the exercise of a right (quasi possesion) (Art, 523). A. Whether a fact or a right -In i ts inception possession is a fact which gives rise t o certain consequences at tached to it by law, that confer upon it th e charac. teristics of a right (Savigny, Barassi).
I. C o n c e p t - ( D e r i v e d from
90 '
The right, as independent an d apart from owner ship, is termed right OF possession ( jus possessionis ) ; to be distinguished from the right T O posses sion which i s a mere incident of ownership ( jus pos-
sidend i) . B. Requisites of possession — a. Holding o r control of a thing o r right; . b. Deliberate intention to possess; c. By virtue of one's own right (not necessarily as owner b ut as t he effect o f a right claimed by t he . holder).
II. Degrees of "holding" — A. Without
title or right whatsoever, as that of a thief;
B. With a juridical title b ut n ot that o f a n owner, a s that of a lessee o r depositary; .
C. With a just title sufficient to transfer ownership, b ut no t from th e true owner, as that of a buyer- i n good faith; an d D. With a title of dominion, a s that of a n owner (Sanchez Roman). ART. 524. Possession may be exercised in one's own name or in that of another. (431a) ART '. 525. The possession of things or rights m ay be ha d in one ·of two concepts: either in the con" . cept of owner or in that of the holder the t h i n g or right to keep or enjoy it, the ownership pertain in g to another person. (432) ART. 526. He is deemed a possessor ' in good faith who is not aware that there exists in his title or mode of acquisition any.flaw which invalidates it. He is deemed a possessor in bad faith who pos sesses in any case contrary to the foregoing.
91
OUTLINE OF PHILIPPINE CIVIL LAW
Mistake upon a doubtful or difficult question of law may be the basis of good faith . (43:3a) I.
Classes of possession: A. By th e character of th e holdinga. Natural — ph ys ica l holding (detention). b. C i v i l — n atural possession coupled with th e in tention of claiming th e benefits of th e thing or right for one's self (Old Civil Code, Art. 430, "intention of making the thing or right as one's own") . The Ne w Code, in omitting this distinction, seems to follow th e doctrine of Yhering — e very holder i s a possessor, entitled t o protection, except those who originally acted with violence (or in timidation) or hold by stealth (thief) or toler a n c e ( per mis sio n) of th e o wn er . T ho s e who hold by tolerance include agents, messengers, guards, etc" who merely serve th e possession of th e principal (Art. 524). B. Civil Possession m a y be— a. By t he claim of t he possessor over the thing : 1) As (i n ' th e concept of) owner (i n t he opinion or belief of others). This is th e onlypos session leading t o title by prescription. 2) As non-owner — (lessee, usufructuary depo, sitary, commodatary) to keep or enjoy th e thing, with th e ownership pertaining to another person (Art. 525). b. By th e character o f th e possession: 1) In good faith-where th e possessor is not aware that there ' i s i n his title or _ mode .of acquisition a defect that invalidates it (wh ,e ther his ignorance be one of fact or of la w 92
'
OUTLINE OF PHILIPPINE CIVIL LAW
is not material, provided such ignorance is not inexcusable; Kasilag v. Rodriguez, 69 Phil. 217) . Mistake on a doubtful question o r difficult question o f law may be th e basis of good faith (Art. 526). 2) In bad faith-where t he possessor is not un aware of th e invalidating defect in his own title or in the title of his predecessor.
Note: Distinguish pO,s session as owner from poss essi on in good fa ,ith. One ma y possess a s owner whether he acts in good or in had faith.
o Possession may also
be : a. In one's own name (personal)-where the pos sessor claims the thing fo r himself (equivalent to civil possession).
b. In the name of anothe1· (Art. 524) -for whom the thing is held by the possessor (as possession by a lessee o r agenta ccording t o Valverde; pos session o f a custodian o r guard, according t o Perez-AIgner and Castan).
The holder h as possession only f or purposes of defending t he possession from strangers. The material or physical holder is only a "possession servant" (Enneccerus). 1) In t h e c a se of a lessee, we should dis tinguishPossession of the thing itself (which th e lessee holds in name of t he owner) ; a nd Possession of the right to enjoy (or benefit , from ) t h e t h i n g ( t h a t th e lessee holds fo r himself and · ca n defend even against th e owner).
OUTLINE OF PHILIPPINE CIVIL LAW
2) Similarly, the distinction should be made in commodatum, deposit, pledge, etc. ART. 527. Good faith is always presumed, and upon him who alleges bad faith on the part of a possessor re st s the bur de n of proof. (434 ) AR T . 528. Possession acquired in good faith does not lose this char acter except i n the case and from the moment facts e xist which show t ha t t he posses sor is not u aware tnat he possesses the thing im pro per ly or wro ngfu lly. (43 5a) I.
In th e absence of other proo f, good faith i s d ee me d lost from service of summons in a suit t o r ec ov er th e thing from th e poss esso r (Art. 1123).
OUTLINE OF PHILIPPINE CIVIL LAW
ART. 530. Only things an d rights which ar e sus ceptible of being appropriated may be the object of possession. (437) .
I. What ma y be possessed: A. Only things and right s susceptible o f being appropriated (i.e. owned) may be t he object of possession (Art. 530). B. Excluded from possession are: a. "Res communes" beyond human control; b. Property of public dominion; c. Discontinuous servitudes; d. Non-apparent servitudes, CHAPTER
ART. 529. I t is presumed that possession continues
to be enjoyed i n the same character i n which i t w as acquired, until the contrary is proved. (436) I.
Presumptions in favor o f the possessor (as owner) : A. Of good f aith unti l the c ontrary is proved (Art. 527). B. Of continuity of initial good faith in which posses sion was started unless acts a re proved showing that th e possessor is aware that he possessed wrongfully (Art. 528) . ' C. Of enjoyment in th e same character (good o r b a d f a it h ) i n which th e possession was acquire d until th e contrary is , proved (Art. 529). D. Of non-interruption in favor of th e present posses sor who proves possession at a prior time (previous occasion) (Art. 554) ,until th e contrary is ' prov ed. E . Of continuous possession b y th e one who recovers pos session of which he was wrongfully deprived, for all pur pos es favorable t o him (Art. 561). F. Of extension o f possession of real property to all mo vables contained therein. (Art. 542), bu t excepting money and securities mentioned i n Art. 426 (T S J une 22, 1928). 94 '
2
ACQUISITION OF POSSESSION ART. 531. Possession is acquired by the material occupation of a thing or the exercise of a r i g h t or by the fact that it is subjec t.o the action of Qur will, or by the proper acts and legal formalities e s tablished f or acquiring such right. (438a) 1. Manner
of acquiring possession: .
A.' Material occupancy of the thinga. Includes constructive delivery (tradition b?"evimany and constitution possessorium). b. The possession of a portion of a tract of land, under claim of ownership of the whole, is constructive possession of the whole' tract, provided that t he remainder is not adversely possessed by another (Ramos vs. Dir. of Lands, 39 Phil. 175). Bu t the area constructively possessed must be reasonable. "Mere planting Qf a sign or symbol of possession cannot justify a Magellan-likeclaim 95
OUTLINE OF PHILIPPINE ClVlL LAW
of dominion over an immense tract of territory" (Lasam vs. Dir. of Lands, 65 Phil. 367, ,373). B. Subjection
to
the
action of our will (according to
law). a. Even without physical seizure (a s in tradicion simbolica an d traditio longa mo ,nu).
C. Proper acts and legal formalities established for ac- · quiring such right Examples are: donation, successioll, transmis sive contracts, etc., executed an d formalized as required by law. b. Th e possessiQn given by th e sheriff to a person in compliance with an order made by the court pu rs ua nt t o t he adjudication of rights in dispute constitutes a proper instance of th e "legal steps an d formalities" as a means of acquiring posses sion (Muyco vs. Montilla. 7 Phil. 498).
OUTLINE OF PHILIPPINE CIVIL LAW
possession of the decedent. if it i s no t shown that he was aware of the flaws affecting it ; bu t the ef fects o f possession in good faith shall n ot benefit him except from th e date of death of the decedent. (442) 1. Special Cases of Acquisition o f Possession: A. Acquisition through another person--Where posses sion is acquired, not by an agent or representative, bu t by a stranger without agency, possession is not acquired until ,th e ac t is ratified (Art. 532).
a.
ART. 532. Possession may be acquired by the same person who is to en joy it, by his legal representa tive, by his agent, or by an y person without any pow er wha tev er; . bu t i n t h e last case, the possession shall no t be consIdered a s acquired until the person i n whose name the ac t of possession wa s executed has ratified·the same, without prejudice to the juri dical consequen,ces of negotiorum gestio in a proper case. (439a)
.
ART. 533. The possession of hereditary property IS deemed transmitted to the heir without interrup tion an d from the moment of the death of the de cedent, in case ,the inheritance is accepted. One who validly renounces an inheritance is deemed never to have possessed the same. (440)
ART. 534. One who succeeds by hereditary title shall no t suffer the consequences of the w r o n g f u l
B. Acquisition b y succession mortis causa — a. T i m e of acquiring: If t he inheritance is accepted, t he estate i s transmitted without Interruption from th e death of the predecessor. Bu t the heir who repudiates is deemed ne ver to have acquired pos ses sio n (Art. 533). b. Effect of bad faith of ·the decedent: One who succeeds by hereditar.y title shall not suffer the consequences of th e wrongful possession of th e decedent unless i t i s shown that h e h ad knowledge of t he defects affecting it ; b ut t he effects of pos session in good faith shall no t benefit him ex cept from th e death of th e decedent (Art. 534). ART. 535. Minors an d incapacitated persons m ay ·acquire the possession of things; bu t they need the assistance of their legal represent atives in order to exercise t he rights which from the possession arise in their favor. (443)
I. Capacity to Acquire Possession:
. A. According t o ,th e Code (Art. 535), minors and inca pa ci tat ed persons · ma y acquire possession of things bu t require intervention of their lawful representatives t o exercise th e rights i n their favor arising from such possession. 97
OUTLINE OF PHILIPPINE CIVIL LAW OUTLINE OF PHILIPPINE CIVIL LAW
I
B. Clearly, however, the rule (of Art. 535, first part) applies only to acts within t he minor's capacity '(phy sical seizure o r manual donation) ; t o acquire posses sion by other juridical acts, th e intervention of th e guardian is required (Castan, cit. Morell).
.. ART. 536. In no case may ' possession be acqu ire u through force or intimidation as long as there is a possess or who objects ther eto. He w ho beli eves that he has a n action o r a right to deprive another of the holding of a thing, must invoke the ai d of the com pe te nt court, if the holder should refuse to deliver the thing. ( 441a) ART. 537. Acts merely tolerated, an d those exe cuted clandestinely and without the knowledge of the possessor of a thing, or by violence, do not a : feet possession. (444) T.
RulingsA. A person who believes himse lf entitled t o t he possession of property may not take th e law into his own hands (Bishop of Cebu vs. Mangaron, 6 Phil. 286) ; or .else, he will be made to suffer th e consequences of his lawlessness (Santiago vs. Cruz) 54 Phil. 640). B. Possession by mere tolerance is n ot adverse and does not give rise to acquisitive prescription (Cuaycong vs. Benedicto, 37 Phil. 781). a. What constitutes tolerance: Tolerance is permis sion. See post, p. 114.
C. "Clandestine" possession is hidden or disguised, as distinguished from open or public possession. Bu t posse ssion is not clandestine merely because th e owner is not personally aware of it.
. ART. 538. Possession as a fact cannot be recognized at the same time in two different personali.ties except i n the cases of co-possession. Should a 98 .
question arise regarding the f a ct of po ssession, th e pr ese nt possessor shall ·be pr eferred ;. if the r e ar e two possessors, the one longer in possession · i f the dates of the po ss e ss i on a r e the same, the one who pre sen ts a title; and if all these conditions ar e equai th e thing shall be placed nin judicial deposit pendin g determination of it s possession or ownership through proper proceedings. (445) 1. Conflicts betw een claimants t .o possession— A.
: Possession can not be recognized in two d i fferent personali ties, except 11l cases of co poss essi on (in div isi on) , when there is no conflict Co-possessors ar e those acting as if they were co owners, without conflicting claims or interest. General rule
in case o f d isput e : preference shall be g iv en — . . a. To the actual possessor (in fact) : b. If there ar e t wo or more possessors, to th e oldest; c. If dates are the same, to the one who e xhibits . title thereto; d. If all these conditions ar e equal, the thing shall be placed in judicial deposit, until possession or ownership is determined in proper pr oceed ings (Art. 538) .
C riteria
C. Bu t possessors may co-exist· if of different degrees. (e.g. owner and lessee). CHAPTER 3
EFFECTS OF POSSESSION
ART. 539. Ever y possessor has a right to be r es pected i n hi s possession ; and should he b e distur bed the r ein he shall be pr otected in or r estor ed to said 99
OUTLINE OF PHILIPPINE CIVIL LAW
possession by t he mea ns e stabl ished by the laws and the Rules of Court. A. possessor deprived. of his possession thr oug h forci ble entry may w i th in t en days f r om the filing of the complamt present a motion to secure from the competent court, in the action f or forcible entr y a writ of preliminary mandatory injunction to res tore him in his possession. The court shall decide th e motion within thir t y (30) days from the filing thereof. (446a) . I. Effects of Possession: A . Protect i on of the possessor regardless of th e man ne r of acquisition.
Every possessor i s entitled t o be resp ected in his poss essi on and should he be disturbed therein he shall be prot ect ed i n o r r estored to such possession by the means established by th e laws of procedure. a. Th e owner must resort t o the courts, and c an no t forcibly eject a possessor (Bago vs. Garcia, 5 Phil. 524; Santiago vs. Cruz, 54 Phil. 540) . b. Actions to re cover possession; kinds— 1) Summar y— Rul e 72 (Forcible entry an d de
tainer). This is sometimes referred to as accion interdictal. 2) Ordinary —A cc ion publiciana based on the superior right of plaintiff to possession (not to ownership) (Bishop of Cebu vs. Manga ron, 6 Phil. 286). It m ay be brought in the Court of First Instance i f no for cible entry action is filed (Del Rosario vs. Celosia. 26 Phil. 404). 3) Accion reivindicatoria based on ownership, mdependent of th e other two actions above mentioned. 100
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4) Injunction against continuation of trespass; n ow available to recover possession already by motion lost only in case of f orcible ent r y, within t en days from th e filing of t he action (Art. 539). of th e pr ot ect i on : De tention (holding n o t a s owner) by itself produces no juridical effects. While th e detainer is a uthorized to repel by force the acts of aggression against the thing that h e holds, an d to demand by proper action th e restoration of this thing, when he is deprived of it by violence, ye t his detention is no t t he source, but the occasion for the exercise of these rights. Th e first derives from the pri nci ple of self-defense, and th e second from rea sons of public order or policy. Spoliatus ante omnia r estituendus. No person may be deprived of prop erty without due process.
B. Basis
If th e holder, moreover, enjoys in certain cases th e faculty of retention, a n d to refuse restitution until reimbursement o f what i s due h im f or expenses ' made because o f the thing held, th e source of this po wer is no t in the detention itself, bu t in a credit whose origin is attached t o this detention, (Aubry e t Rau, Droit Civil, Vol. 2, p. 1, 6t h Ed.) C. Reason fo r th e protection (Manresa): ,a. Possession is most analogous to ownership. b. It gives rise to a presumption of ownership. c. It is an important modification of ownership. d. It i s a juridical state worthy of protection. D. Note that th e effects of possession regulated by the Code a re those of possession i n the concept o f owner. Only Ar t. 539 applies to other classes of possession, and th e rule of said article (539) is rooted. no t in th e fact of possession, bu t in public policy; that no one should. take t he la w in his own hands. True pos101
OUTLINE OF PHILIPPINE C IVIL LAW
session und er the Civil Code, therefore, is possession in th e concept of owner. ART. 540. Only the possession acquired and en· joyed in the concept of owner can serve as a t t fo r ac quiring dominion. (447 ) I.
The following m ay not ac quire ow nership b y acquisitive pre scr ipt ion : A. Lessees (L a ureto vs. Mauricio (CA) 37 OG 1286) ; B. Trustees (Camagun vs. Allingay, 19 Phil. 415); a. Includes parent against child under potestas; husband against wife during coverture (Art. 1109) .
C. Agents (De Borja vs. De Borja, 59 Phil. 19) ;
D. Antichretic creditors (Barretto vs. Barretto, 3 7 Phil. 234). E. Co-owners (v. ante, p. 76)
II . Although a mere t ax declaration does not, of i tself , vest title of ownership in the declarant (Casimiro vs. Fer nandez, 9 P h il. 562), a nd while the tax assessment alone is of little value as proof of title (Prov. of Camarmes Su r vs. Dir. of Lands, 64 Phil. 600), still, payment o f a land ta x is one of th e 'most persuasive and positive in dicia which show th e intention to possess under claim of ownershi p (Tupaz vs. Ricamora,. (CA) 37 OG 581). ART. 541. A possessor in the concept of owner has in his favor the legal presumption that he possesses with a just title an d he cannot be obliged to show or p rove it. (448a) . I. Effects in favor of possession in the conce pt of owner. A. Presumption of just title a nd h e c an not be 'compelled to exhibit it (Art. 541). a. But the presumption of just title does not apply t o a n adverse possessor in acquisitive prescrip tion who m.u st pr ove his just title ( Art. 1131). 102
OUTLI NE OF PHILIPPINE CIVIL LAW
B. Possession ca n ripen i nto ownership by prescription. Only th e possession in concept of owner can serve as title to acquire ownership (Art. 540). C. A possessor in t he concept of owner m ay exercise all pow er s attached to ownership, until he is ousted by one with a better right (TS Nov. 27, 1906; 10 Feb. 1914; 9 March 1922; 25 March 1925). D. Right to fruits and reimbursement of expenses, post, pp. 104-107.
ART. 542. The possession of real property pre sumes that of the movables therein, so long as i t i s not s hown or proved that they should be excluded. (449) ART. 543. Each one of the participants of a thing possessed in common shall be deemed to have ex clusively possessed the part which may be allotted to him upon the division thereof, for th e entire per iod during which the co-possession lasted. Interrup tion in the possession of the whole or a part of a · thing possessed i n common shall be to the prejudice of all the possessors. However, in case of ci vil in terruption, the Rules of Court shall apply. (450a) ART. 544. A possessor in good faith is entitled to the fruits received before the possession is legally interrupted. Na tu ra l and industrial fruits ar e considered re ceived from the time they ar e gathered or severed. Civil fruits ar e deemed to accrue daily and be long to the possessor in good faith in that proportion. (451) . ART. 545. If at the time the good faith ceases, there should be a ny natural or industrial fruits, t he possesso r shall h ave a right to a part of the expenses of cultivation, and to a part of the n et harvest, both . in proportion to the time of the possession. 103
OUTLINE OF ·PHILIFPINE CIVIL LAW O U T L I N E OF PHILIPPINE CIVIL LAW
Charges ar e expenses on account of the thing, bu t . no t in the thing (Manresa).
The charges shall be divided on the same basis by the two possessors. The owner of t he thing may, should he so desire, give the possessor in good faith the right to finish tne cultivation a nd garnering of th e growing fruits, as an indemnity f or h is part of the expenses of cul tivation and t he ne t proceeds; the possessor in good faith who for an y reason whatever should refuse to accept this concession, shall lose the right to be indemnified in any other manner. (452a)
4) Owner's OPTION:
aa ) To reimburse expenses, fruits an d charges in money, OR bb) To per mit t he possessor t o finish cultivation a n d t h e collection of fru its , in lieu of indemnity. — The possessor must accept the owner's choice or lose t he right to indemnity, even if the fruits ar e less than his expenses.
1. Effects of possession as owner as to the fruits:
A. Fruits gathered or s evered. a.
in good faith — He makes t he fruits h is own until possession is legally interrupted (Art. 544; National Coconut Corporation vs. Geronimo, G.R. No. L-2899, April 29, 1949).
Po sse sso r
b. Possessor in bad faith — He must pay no t only fo r th e fruits received bu t also for those that th e owner might have received (except for the fault or negligence of the possessor), less th e expenses of cultivation (to avoid unjust enrich m en t) ( A rt . 549; Dir. of Lands vs. Abagat, 53 Phil. 147). . B.
F ruits
pending (ungathered).
a. Possessor in good faith--is · entitled to th e fol l o w i n g (Art. 545) : 1) Pror atin g of cultivation expenses. 2) Prorating of net proceeds of the crop in pro por tio n to th e time .of possession ( on th e ba s is of the ag ricultural year 3)
Prorating of charges (including all kinds of taxes, pensions for annuities, interest on mortgages etc.).
104
b. Possessor in bad faith--loses the fruits and the expenses of cultivatIon (Art. 449). ART. 546. Necessary expenses shall be refl:mded to every possessor; bu t only the possessor in good faith ma y retain the thing until he has been re imbursed therefor. Useful expenses shall be refunded only to th e posses sor in good faith with the same right of re tention, the per son who h as defeated him in th e possession having the option of refundmg the amount of the expenses or of paying the increase in value which the thing may have acquired by reason thereof. (453a) ART. 547. If the useful improvements can be re moved without damage to the principal thing, the possess or in good faith ma y remove .them, unless the per son who recov ers th e possession exercises the option under paragraph 2 of the preceding a rt ··
icle.(n) ART.
548. Expenses fo r p u r e luxury or m e r e
pl ea s ur e shall not be refunded to the possessor.m
good f a i t h bu t he may remove the ornaments WIth 105
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which he has embellished the principal thing if it suffers no injury thereby, and if his successor in the possession does n ot prefer to refund the amount expended. (454)
ART. 554. A pr esen t possessor who shows his pos session at some previous time, is presumed to have held possession also during th e intermediate period, in the absence of proof to the contrary . (459)
,
The possessor in b ad faith shall reim bu rs e t he fruits received an d those which the legiti mat e possessor could have received, an d shall have a right only to the expenses mentioned i n paragraph 1 of article 546 an d in article 443. The expenses incurred in improvements for pure luxury o r mere ple asu re shal l no t be refunded to the possessor m ba d faith; bu t he m ay remove the objects f or which such expenses have b een incurred, provided that th e thmg suffers no mJury thereby, an d that t he la w iu1 possess or does n ot prefer to retain .them by pay ing t he value they may have at t he time he enters into possession. (455a)
1. Effects of possession as owner as regards expenses on the thing possessed — A. Necessary expense.s (without which th e thing would phy sica lly deteriorate or be lost). a. Any possessor ( in good or in bad faith) is entit led t o reimbursement (Art. 546). b. Only th e possessor in good faith is 'entitled to ' retention.
ART. 549.
NO TE : Taxes ar e "charges," not necessary ex . pen ses (Ca big ao vs. Vale ncia , 53 P hil. 646 ).
.
B. Useful expenses (increase the productivity or raise th e value fo r every subsequent possessor, e.g., an irrigation system-Valencia vs. Lopez, 51 Phil. 279).
'
ART. 550. The costs of litigation over the property shall be b orne by every possessor. ART. 551. Improvements caused by Nature or time shall always inure to the benefit of the person who ha s succeeded in recovering possession. ( 456)
552. A possessor in good faith shall not be liable f or the deterioration or loss of the thing pos sessed, except i n cases in which it is proved that he ha s acted with fraudulent intent or negligence, after the judicial summons. A possessor in bad faith shall be liable for dete rioration or loss in every case, even if caused by a fortuitous event. (457a) ART. 553. One who recovers possession shall not be obliged to pay fo r improvements which have ceased to exist at the time he takes possession of the thing. (458) ART.
106 ,
-
a. Possessor in good faith : The o w n e r must reimburse useful expenses (Art. 546). 1) Manner of reimburse' ment: The owner has th e option to — i) Pa y th e original cost of the improve ment, OR ii) P a y t h e increase in th e value ("plus
va1ue") du e to th e improvement. —B ut th e possessor in good faith is entitled to (1) r etention until paid, or (2) to remove th e improvements, with,out damage to th e pri nci pal , unless compensation is paid (Art . 547). b. Possessor in bad faith: He loses the improve ments without reimbursement (Art. 449) . Im pro vem ent s made by t he execution p u r chaser dur ing th e one year period of redemption (Flores
107
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vs. Lim, 50 Phil. 738) with intent to prevent re demption, come under this rule.
NO TE: Necessary a nd useful expenses c an n ot b e se t of f against fruits gathered by th e pos ses sor (To que ro vs. Valdez, 35 OG [102] 1799). C. Ornarnental (Luxury ) Expenses- (which ad d to the value of the thing only for certain determinate per sons) (f.e., gardens, murals, statuary; Art. 548).
a. Possessor in good faith: He has no right to re imbursement. T h e o w ne r ha s th e option to either (Art. 548) : 1) Retain th e ornament by refunding th e a mount
spent; OR 2) Permit the possessor to remove th e orna
ment provided the principal thing is no t in ju re d (t o the extent of impairing its value ' or of requiring extraordinary repairs). b. Possessor in bad faith: He has no right to re imbursement. The owner's option is , either to :
1) Retain th e ,ornament b y paying it s value at the tirne of taking possession (cf. possessor in good faith) : or
OUTLINE OF PHILIPPINE CIVIL LAW
II. R esponsibility for the loss of t h e thing possessed: (Art.
552). A. Possessor in good faith: He i s no t liable f or deterio ration or loss unless acting with fraudulent intent or negligence, after summons. He answers fo r th e loss or B. possessor in bad faith: deterioration even if due to force majuere. (Ar t . 552). NOT E: The owner's options ar e threefold: a. As to pr oduction expenses o f pending fruits: 1) To prorate expenses an d ne t fruits; OR
2) To permit th e possessor in good f a ith to finish cultivation an d t he collectIon of fruits (without further indemnity).
b. As to useful expenses of possessor in good faith: 1) To refund th e amount spent O R 2) To pa y th e "plus value".
c. A s t o ornarnental expenses: 1) To allow removal of ornaments (if pos sible without injury) ; OR 2 ) T o refund th e amount expended to th e pos sessor in good faith or "plus value" to th e poss ess or in bad faith.
2) Permit the r emoval of th e ornament if th e pr inc ipa l thing suffers no damage thereby consisting in reduction of th e value or in requiring extra repair (Art. 549).
D. I m prove ments no longer existing : imbursement arises (Art. 553).
N o right of re
E. I m prove ments due to nature or to tirne: No right to reimbursement arises. They ac c r ue to th e benefit o f the lawful possessor (Art. 551). 108
109
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III. SUMMARY OF TH E EFFECTS OF POSSESSION AND THE RULES ON REFUNDS POSSESSOR IN GOOD FAITH
SUBJECT
POSSESSOR IN BAD FAITH
1. To Possessor .
1. Fruits Gathered.
1. To owner (received and might h a v e r e ceived) .
2. Cultivation Expenses .
2. Reimbursed to Possessor (Art. 545).
2. Reimbursed. to Pos sessor (Art. 443, 549)
3. Fruits Pending & Charges.
3. Prorated according to T i m e ( A g ri c u l
o wn er 3. T o 362).
tural Y e ar )
(Art.
( A rt .
545).
4. Production Expenses.
4. Indemnity pro rata to Possessor (own-
I 4.
er's Opti on). a) In money OR b) By allowing full
No indemnity (Art. 449) in case of
pending f rui ts .
l
5. Necessary Expen ses Preserva.t ion) .
5. Reimbursed to Possessor ( Retention, Art. 546) .
6. Reimbursedo t Pos -
-
(Increase Produc· v i t y o r objective v a.
I.
sessor . (Owner's Option) a) Initial cost or b) PLUS value (Retention) . . (Art. 549). M a y r e mo v e if no reimburse m e n t ( A r t . 547) an d no damage is caused th e to pri nci pal by the removal.
110
7. Ornamental Expen· ses (increase sub ject ive value).
5. Reimbursed to Pos sessor ( N o r e te n tion) (Art. 546).
7. Reimbursement
at Owner's option: a) Removal if no in jur y, OR b) Cost without re moval (Art. 548)
7. Owner's Option a) Rem ov a l OR
b) Val ue at time of recovery (Art. 549).
8. Taxes & charges a) On capital. b) On Fruits (including yearly taxes) . c) Charges.
8. Taxes & charges a ) C h ar g ed t o own
er. b) Charged to Pos sessor. c) Prorated.
8. 'Taxes & charges a) 'C h a r ge d t o owner. b) Charged to own· er. c) To o w ne r (be cause of Nos. 3 and 4).
9. Improvements
9. No reimbursement .
9. No reimbursement.
no
longer . existing. 10. Liability fo r _ acci dental loss or dete
cultivation and g a t h e r in g of all fruits (Art. 545) .
POSSESSOR IN BA D FAITH
POSSESSOR IN GOOD F A I T H
SUBJECT
. _- -- - -- -
--
11. Improvements due to time or nature.
10. Only if acting with 10. Liable i n e ve r y case (Art. 552). fraudulent intent .01' negligence, after summons (Art. 552) 11. T o o w n er or law fu l possessor (Art.
11. T o o w n er or law .ful possessor:
6. No Reimbursement (Art. 549)
ART. 555. A possessor m ay lose his possession.: (1) By the
the thing;
(2) By a n onerous or gratuitous title;
to another either by
(3) By or total loss of the thing, or because it goes 'out of commerce; 111
...
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(4) By t he possession of another, subject to the provisions of article 537, If the new possession has lasted longer than one yea r Bu t th e real right of possession is not lost till after the lapse of ten years. (460a)
animals ar e considered domestic or tame, if they retain t he habit of returning to the premises of the possessor, (465)
ART. 556. The possession of movables is n ot deem ed lost so long . as they remain under the control of the possessor even though for the time being he may not know their whereabouts. (461) ART. 557. The possession of immovables and of real rights is not deemed lost, or transferred fo r pur pose s of pre scr i ption to. the prejudice of third person s ex cept in accordance with the provisions of the Mortgage Law an d the Land Registration laws. (462a) ART. 558. Acts relating to possession, executed or agreed to by o ne who possesses a. thing helong in g to another as a mere holder to enjoy or kee p i t in any character, do not bind or- pre judi ce the owner, unless he gave said holder express authority to do such acts, or ratifies them subsequently. (463) ART. 559. The possession of movable property ac quired i n good faith is equivalent to a. title. Never theless, one who has lost any movable or has been unlawfully deprived thereof, may recover it from the person in possession of the same.
If the possessor of a movable lost or of which the owner has been unlawfully deprived, has acquired it in good faith at a public sale, the owner cannot obtain it s return without reimbursing the pri ce paid therefor. (464a) ART. 560. Wild animals are possessed only while they are under one's control; domesticated or tamed 112 '
ART. 561. One who recovers, accordihg to law. possession unjustly lost, shall be deemed f or all pur poses which m ay redound to his benefit, to have enjoyed i t withont intenuption. (466) 1. Loss
of Po,s session:
A. General Causes (Art. 555)— a. By the will of ·the possessor . 1) Abandonment of the thing (loss o f h o pe
and intent t o recover) (U.S. vs. Rey, 8 Phil. 500) . 2) Transfer or conveyance, made gratuitously or for consideration. Requisites: i) Possession in the concept of owner; ii ) Capacity to alienate (Manresa). b, Against the will of the possessor. 1) Eminent domain; 2) Acquisitive prescription
by another (ad
verse ' possession) ; 3) Judicial decree in favor of better right;
4) Possession of another fo r more than one
year i ) T h is refers to possession " de facto" and not "d e jure" (Caballero vs. Abellana, 15 Phil. 534) , ii) The possessor in thi s case loses th e right t o a summary action; bu t h e may still bring accion publiciana or reivindicatoria, until th e action prescribes by ordinary or extraordinary prescription (Rodriguez vs. Taino, 16 Phil. 301). 113
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iii) It also destroys constructive possession
(Leola vs. Ibanez, 48 OG 2811).
c. By reason of the object. 1) Destruction or total loss of the thing; 2) Withdrawal from commerce; . 3) Escape of a wild animal (Art. 560).
B. What does not cause loss of possession? 558). '
(Arts. 537,
a. Acts executed by stealth and without th e know- , ledge of th e possessor. b. Acts merely tolerated, either by th e possessor (Art. 537) or by his representative or holder in his name, unless authorized or ratified (Art. 558). 1) Tolerance means permission. S ilence or in
action is not tolerance bu t negligence, and will no t ba r adverse possession (Manresa). It is a question of fact.
"What is difficult is t he tracing o f t he divid ing line between tolerance of and abandon ment by , th e owner of his rights, when th e acts of th e holder ar e repeated, and much more so when .time lapses affirming and con solidating a relation which may be doubted whether or n ot th e same was legitimate in its origin. Whether there w as license o r permis The sion is most difficult to determine. jud ges and the courts will determine then whether or not there was in each case mere toler a nce o r a true abandonment o f the right on the part of th e owner." (Manresa). c. Violence. Under sec. 41 , Act 190, it could give rIse to prescription: "ten years actual adverse , poss essio n . .. . i n what eve r w ay such occupancy may have commenced or continued shall vest in 114
every actual occupant or possessor of such a land a full and complete title." .Pr ovided th e posses sion is open, public (Le. n o t b y s te al th ) a nd adverse to all other claimants (Le. not tolerated) (Conspecto vs. Fruto , 31 Phil. 144). This rule is now modified by Art. 536 whereby such posses sion is not recognized "as long as there is a poss ess or who obje cts thereto". d. Temporary ignorance of the whereabouts of mo vable property (Art. 556) while under the con trol of th e possessor (i.e. so long as it does not come under the control of another — M anresa). 1)
The article assumes that the thing remains in one's · pat rim ony (Sanchez Roman).
e. Effect o f Recovery The possessor who recovers poss essio n is cons ider ed a s having ha d uninterrupted possession despite these acts of violence, stealth or tolerance; bu t h e must recover posses sion by due process, and not otherwise (Arts. 561, 536, 539). II. Possession of Movables: Special rules fo r their acqui sition from a non-owner (a non domino) (Art. 559) .
A. General Rule: a. Possession o f Imovables i n good faith i s equivalent to title. 1) This rule must ' be properly understood, as follows (Manresa): i) It does n ot lay down a pr esumpti on The poss ess or ha s actual title, defeasible only by the true owner. ii) It refers to possession in the concept of owner iii) It (title) refers to a jU1'idical act of con
veyance and
115
not
to a documenL.
OUTLINE OF PHILIPPINE CIVIL LAW OUTLINE OF PHILIPPIN ,E CIVIL LAW
b. But one who has lost or has been unlawfully de p' rived o f i t, ma y recover it from whomsoever poss esse s it, without reimbursement ordinarily (U.S. vs. Rapinan, 1 Phil. 294). 1) The owner of t he movable must prove: (1) ownership of the thing an d (2) loss 01' unlawful deprivation; o r else bad faith of th e poss ess or. Title is n ot enough, unlike in real pro pe rty (Manresa) t o j u st i fy recovery. [Sotto v. Enage, (CA) 43 OG 5075J. 2) Unlawful deprivation has ,reference to Arts.
104 and 105, R .P.C. {restitution .of the ob je ct of a crime). "The . thing itself must be restored, even though i t be found i n t he pos session o f a third person wh o h as acquired i t by lawful means,- saving to the latter his ac tion against the proper person who may be liable to him" (R.P.C. Art. 105, par. 2) . 3) Where the owner acts negligently, or volun tarily parts with money or negotiable paper he ca n no t recover it from th e possessor (U.S. vs. Sotelo, 28 Phil. 147).
in fairs (Art. 1505 Civil Code; Code of Commerce, Ar t . 86) ;
2)
If acquired
3)
If acquired from
stor es of i) Legally registered merchants, OR
ii ) Non-registered merchants whose stores ar e advertised or open to th e public f or eight (8) consecutive days (Code of Commerce, Arts. 85, 86).
4) If the title is lost b y prescription o f 4 years (in good ·f a it h ) o r 8 years (regardless of good faith) (Art. 1132) .
5)
If th e possessor is a holder i n due course of a negotiable document o f title to goods (Art. 1518). .
6) If th e possessor acquired the goods by sale under t he order o f a competent court or sta tutory power of sale (Art. 1505 [2]).
7)
th e owner is by his conduct precluded from denying th e seller's title (estoppel). (Art. 1505).
If
4) " Good faith" of th e possessor is his "belief that th e person from whom he ,received the thing was its owner, and could transfer va lid title thereto" (Art. 1127). c. The owner may recover th e movable in case of loss (mislaid property) or involuntar y deprivation; b ut must REIMBURSE T HE PRICE PAID: 1) If th e possessor acquired th e thing (1) in good faith and (2) 'at a public sale (Le., at auction with due notice t o th e public) . d. Th e owner of property lost or illegally taken CAN NOT RECOVER IT: 1)
If acquired' i n
mar k ets;
116
117
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Title VI.-USUFRUCT , CHAPTER 1
USUFRUCT IN GENERAL ART. 562. Usufruct gives a light to enjoy the pr op er ty of another wIth th e obligation of preserving its form and substance, unless the title constituting it or the law otherwise provides. (467) I.
Concept — "Usufruct is a real right, temporary in character, that authorizes t he holder to enjoy al l advan tages derived from a normal exploitation of another's pr op er ty, a c c o r d i n g to it s destination or pur pos e, and imposes th e obligation of restoring , at the time s pecified, either th ething itself or its equivalent." De Bu en:
II. Characte' ristics of U sul r.uct: A . Essential characteristics: a, It is a real right, b. Of temporary duration, . c. To derive all advantages from the thing d ue to normal exploitation. B. Natural characteristics (not essential): , a. T he usufructuary must preserve t h e form or substance of th e thing. 1) But preservation is a natural requisite, no t essential bec aus e " t h e t i t l e constituting it or the l a w " may prov ide otherwis e (Art. 562). ' . , 2) "Substance" is destination, an d value of th e thing. '; b. Th e usufruct i s exstinguished b y t he death of the usufructuar y. A ga i n, this is a natural element not ess ential , because a "contrary intention" may pre vai l (Art, 603).
118
III. Usufruct an d l ease distinguished: A. By the nature of t he right — U sufruct is always a real right; lease may create a quasi-real or a personal right. B. By the creator of the right—The person constituting the usufruct must b e the owner; he who constitutes a lease need n ot b e a n owner. C. By t he cause—Usufruct i nvolves a more or less pas sive owner w ho allows th e usufructuary to enjoy t he thing ("deja gozar") ; lease involves a more active owner o r lessor who makes t he lessee enjoy the thing ("hace gozar"). D. By the extent of enjoyment-Usufruct generally co vers all the utility of which the. thing is capable; lease generally covers a particular utility. E. By th e origi n—U sufruct may he created by l aw, by by prescription; lease may the will or the p arties, or only be created by the wil l of the parties (except i n th e case provided under Art. 448). F. As regards repairs and taxes—A usufructuary pays fo r ordinary repairs an d taxes o n the fruits; these ar e generally n ot bo rn e by a lessee. IV. U suf r uct an d servitudes, distinguished : A. As t o th e object — Usufruct ma y involve real or per sonal pro pe rty ; servitudes may only involve real pro perty. B. By t he extent or enjoyment — U sufruct covers all th e uses of the thing; servitudes ar e limited to a particular use. ART. 563. Usufruct is constituted by law, by the iv os will of private persons expressed i n acts i n t e r v or i n a last will a nd testament, an d by prescription.
(468) 119
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ART. 564. Usufruct may be constituted on the whole or a part o f . the fruits of the thing, favor of one or more persons, simultaneously or succes sively, and in every case from or .to a certain day, pur el y o r conditionally. It .ma y also be constituted on a right, provided it is not strictly personal or intransm i ssible. (469) I. Classes (Arts. 563, 564). A.
By reason of the persons enjoying t he right. a. Simple—One us ufructuary enjoys i t. b. Multiple—Several usufructuaries enjoy it. ' 1 ) Simultaneous — 2) Successive—Usufructs constituted i n
t hi s manner can not go beyond limits laid down by Art. 75 6 a nd Art. 869. Hence — of property i) In donation— O wnership may be donated to one person and the usufruct .to another or others, pr ovided all th e donees ar e living at the time of th e donation (Art. 756). ii) In testamentary succession-I f th e tes tator gives a usufruct to various per
sons successively,' th e provisions 011 y s ubs tit uti on Art. 863) f i deicommissar shall apply (Art. 869) (not more than two successive usufructs b y usufruc tuaries living a t the testator's death).
B. By reason of t he object. a. On rights These should not be personal or in transmissible in character (Art. 564). b. On things.
1) Nor mal — C onstituted on non-consumable pro per ty. 120
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2) Abnor mal (irregular)-Constituted on consumable property (e.g. money; Alunan vs. Veloso, 52 Phil. 545). This is sometimes referred to as " quasi-usufruct" (Art. 574).
C. By i ts extent. a. As to th e fruits1) Total —Invol ving all th e fruits of t he thing. — In vo lv in g p ar t only (Art. 564). 2) Par ti al b. As to the o bj ec t1) Universal —Con sti tut ed over the entire pa trimony (Art. 598). 2) Singular — C onstituted over individual things or rights.
D. By i ts terms. a, Pure; b. Con diti ona l; c. With a term (period) (Art. 564). E. By i ts origin. a. Voluntary — 1) Inter vivos. i) By alienation of the usufruct. ii ) By retention of th e usufruct (aliena tion of naked ownership). 2) Mortis causa. NO TE: Where a usufruct i s constituted in te r vivos a nd f or valuable consideration, t he contract is unenforceable unless in writing (statute of Frauds) (Art. 1403, par. 2(e) . b. Legal (e.g., the usufruct of parents over th e . property of their unemancipated chIldren, Art. 321). c. Prescriptive (acquired by prescription): 121
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lea se he or his heir s and successors shall r eceive only 'the prop oyti onat e share of the rent that must be paid by the lessee, (473) ART. 569. Civil fr u its ar e deemed to accrue daily, and belong to the usufructuary in pro po rti on to the time the usufruct may last. (414)
ART. 565.
The rights and obligations of the usu fructuary shall be those provided in the title consti tuting the usufruct; in default of such title, o r in case it is deficient, the provisions contained in t he two following Chapters shall be observed. (470)
ART. 570. Whenever a usufruct is constituted on the right to r eceive a r en t or periodical pension, whethe r in money or in fr uits, or in th e i nte r est on bon ds or securities payable to bearer, each payment due shall be considered as the proceeds or fruits of such right. Wheneve r it consists in the enjoyment of benefits accruing from a participation i n any industrial or commercial enterprise, the date o f the distribution of which is no t fixed, such benefits shall have the s a m e character. In either case they shall be distributed as civil fruits, an d shall be applied in the manner pre scribed in the preceding article. (475)
CHAPTER 2
RIGHTS OF TH E USUFRUCTUARY ART. 566. The usufructuary shall be entitled to all the natural , industrial an d civil fruits of th e pr op er ty i n usufruct. 'With respect to hidden trea sure which ma y be found on the land or tenement. he shall be considered a stranger. (471)
I
ART . 567. Natural or industrial fruits growing at the time the usufruct begins, belong to the usu fructuary. Those growing at the time the usufruct t ermi nates, belong to the owner. In the preceding cases, the usufructuary; at the beg inn ing of the usufruct, has no obligation to re fund to the owner any. expenses incurred; bu t the owner shall be obliged to reimburse at th e term i- . nation of the usufruct, from the proceeds of the growing fruits, the ordinary expenses of cultiva- . tion, fo r seed, and other similar expenses incurred by the us uf ru ct ua ry .
The provisions of this article shall not prejudice . th e right of third persons, acquired either at t he beg inn in g or at the termination of the usufruct. (472) . ART. 568. I f the usufructuary ha s leased the lands or tenements given in usufruct, and t he usu fruct should expire before the termination of the
ART. 571. The usufructuary shall have the right to enjoy an y increase which the thing in usufruct ma y acquire through accession, th e ser vitudes es tablished in its favor, and, in general, all t he bene fits inherent therein. (479)
J
ART. 572. Th e usufructuary ma y personally en joy the thing in usufruct, lease it to another , o r alienate his right of usufruct, even by a gratituous title; bu t all the contracts h e may enter into. as such usufructuary shall term in at e upon the expiration o f the usufruct saving leases of rural iands, which shall be considered as subsisting during the agricultural year. (480) ' I
123
OUTLINE OF PHILIPPINE CIVIL LAW
Rig hts of the
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as to thing and its fruits:
b.
Possession and Enjoyment (personally or through another)I
/
a. To receive and benefit from the fruits, whether natural, industrial or civil; but not hidd en treasure, as to which the us'u fructuary is a stranger, as finder (Art: 566). (As to the entitled to spouse under a conjugal partnership system, see "Accession".) 1) Fruits pending at the beginning-belong to the usufructuary, without reimbursement of expenses t o t he owners, b ut also without pre jud ice t o third persons (Art. 567). 2) Fruits pending a t i ts termination—belong t o th e owner.
i ) T he owner shall reimbu1'se to th e usufructuary ordinary cultivation expenses fro m the proceeds ,of the fruits (not to exceed t he value of the fruits). 3) Civil fruits are prorated according to time (Arts. 569, 568). There is no prorating of natural or industrial fruits. b. To enjoy an y , increase through accessions and servitudes, including products of hunting and fishing. c. To half of th e hidden treasure he accidentally finds (Art. 438). B. To lease the thing (Art. 572). a. Ordinarily th e lease should be for the same (o r , shorter) period as the usufruct. The end of the usufruct is the 'end of the lease; except in leases of rural lands. 124
c.
d.
. n .
the usufruct ends earlier, t he lease of rural land subsists only for the remainder of the agricultural year (Art. 572). The usufructuary, no t t he naked owner, has the right to choose the tenant (Fabie vs. David, 75 Phil. 536). for injurious acts Bu t the usufructuary of th e lessee (Art. 590).
If
of th e usufrilctuary as rega,r ds the usufruct it·
self. A. To mortgage the right of usufruct (Art. 572 an d M. 'L. Art. 106) except parental usufruct, because of ,personal and family considerations. B.
To alienate the usufruct. l
a. But parental usufruct (Art. i 320) is not alienable (Manresa; Morell, Campuzano; TS 7 July 1892, 27 Sept. 1893). ART. 573. Whenever the 'usufruct includes things which without being consumed, gradually ,deterIOrate through wear and tear, the shall have the right to make u se thereof accordance with the purpose for whIch they ar e mtended, shall not be obliged to r,e turn them th e tion of the usufruct except in theIr at that time' but he shall be oblIged to the owner'for any deterioration they have fered by reason of his fraud or neglIgence. (481) ..
ART. 574. Whenever the usufruct things which cannot be used without the of usufructuary shall have the light to make them under the obligation of paymg their appraised , value at the termination of the usufruct. If they were appraised when delivered. In cas e they were
125
OUTLINE OF PHILIPPINE CIVIL LAW
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not appraised, he shall have the right to return thE same quantity and quality, or pay their current price at the time the usufruct ceases. (482)
of the things in usufruct, and in such case h e shall first inform the owner of the necessity for the work. (485)
ART. 575. The usufructuary of fruit-bearing trees and shrubs may make use of the dead trunks. and even of those cut off or uprooted by accident, under the obligation to replace them with new plants. (483a)
ART. 578. The usufructuary of an action to re cover real proper ty or a real right, or any movable property, has the right to bring the action and to oblige the owner thereof to give him the authority fo r this purpose and to furnish him whatever proof he may have. · If in consequence of the enforcement of the action he acquires the thing the usufruct shall he limited to the fruits, the domI nion remaining with the owner. (486)
ART. 576. If i n consequence of a calamity or extraordinary event, the trees or shrubs shall have disappeared in such considerable number that it would not be possible or it would be too ' burden some to replace them, the usufructuary leave the dead, fallen or uprooted trunks at the disposal of the owner, and demand that the latter remove them and clear the land. (484a ) , ' ART. 577. The usufru.ctuary of woodland may enjoy all the benefits which it m ay produce accord ing to its nature. If the woodland is a or consists of timber f o r building, the usufructuary may do such ' ordi w'as in the nary cutting or felling .as the habit of doing, and in default of this. he may do so in accordance. with the cust om ,of th e as to the manner, amount and season. , In any case cutting of trees shall felling be made ,in such manner as not to prejudice the preservatIOn of the land. In nurseries, the usufructuary may make the necessary thinnipgs in order that the remaining trees may .properly grow. w i t h the exception of the provisions of the pre ceding paragraphs, the usu.fructuary cannot · cu t down trees unless it be to restore or improve some 126
ART. 579. The usufructuary may make on the property held in usufruct such useful improvements or expenses f or mere pleasure as he may deem pro per, provided he does not alter its form or sub bu t he shall have no right to be indemnified therefor. He may, however, relnove such improve ments, should it be possible to do so without dam age to the property. (467) set off the im ART. 580. The provements he may have made .on th e. property against any damage to the same. (488) 1. Other . rights of th e usufructuary as · regards the thing
under usufruct:
A. To improve the thing (Art. 579). a. The usufructuary must not alt er form or sub stance, unless, he is authorized (Art : 581) b. No right of indemnity for imp? ' ovements arises, 1)
usufructuary ?nay remove them if no damage is caused to th e property (Art.
But the
579}.
127
OUTLINE OF PHILIPPINE CIVIL LAW
2) He may (alternatively) compensate (set off) improvements against damages fo r which thE usufructuary is liable (Art. 580). i) The excess of the value o f the improve ments over the damages is paid to the only if the improvement is removable; if not, the excess accrues in favor of the landowner (Manresa). II. Summary of th e rights of the usufructuary:
A. On the thinga. Possession and enjoyment (Arts. 566-571) ; b. The right to lease the thing (Art. 572); c. The right to improve th e thing (Art. 579).
t
B. On th e right of usufruct itselfa. To mortgage (encumber) it ; b. To alienate it (Art. 572) (except parental usu fruct) . c.
As t o special usufructs, see pos.t -(-page 129).
ART. 581. The owner of property the usufruct of which is held by another, may alienate it, but h e cannot alter its form or or do anything thereon which ma y be prejudicial to the usufructuary. (489) 1. Rights of
the owner during the usufruct:
A. He retains title to the thing or property. B. He may alienate the property; but he m a y a. Not alter form or substance of th e thing; b. Nor do anything prejudicial to the usufructuary (Art. 5S1). C.
He may construct buildings, make improvements and plantings. . 128
OUTLINE OF PHILIPPINE CIVIL LAW
Provided: a. The value o f the usufruct i s no t impaired, an d b. The rights of the usufructuary ar e not preju. diced. ART. 582. Tlie usufructuary o f a part o f a tlJing the rights per held in common exercise taining to the owner thereof w i t h to administration and the collection of frUIts or terest. Should t he co-ownership cease by reason of the division of the thing held in the usu fruct of th e nart allotted to the co-owner shall be (490) long to the
I. Special usufructs: A. Usufruct of pension 01' income (Art. 570). . a. Each payment.shall be considered as fruits. b. The distribution of ben.efits . (dividends) of in dustrial or commercial "enterprises shall also be deemed fruits. 1) Hence, stock dividends belong to the usufruc tuary (Del Saz Orozco v. Araneta, G. R. No. L-3691, Nov. 21, 1951). c. shall b e on the basis of t he ordi nary rules governing civil fruits (Le., day to day). B. Usuf1'uct o f prope1·ty owned i n common (Art. 582). a. The usufructuary takes t he place of t he owner a s
to— 1) Management; 2) Fruits, and 3) Interest. b. After partition, the usufruct is transferred to th e part allotted to the co-owner. 129
\
.
OUTLINE OF PHILIPPINE CIVIL LAW C.
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Usufruct of cattle (livestock) (Art. 591). a. On sterile stock, th e same rules on consumable
F. Usufruct on mortgaged proper.ty (Art. 600). a. The owner is liable f or damages in case of fore closure. b. The usufructuary i s n ot liable fo r mortgage debts. G. Usufruct over the enti1'e patrimony (Art. 598). a. General rule: The usufructuary is n ot liable fo r . th e: owner's debts. . b. Exceptions: 1) When it i s so stipulated; in which casei) The usufructuary shall be liable for the debt specified. ii) If there is no specification, he is liable only fo r debts incurred by the owner before t he usufruct w as constituted. in fraud . 2) When the usufruct is constituted of creditors. c. Limitation: 1) In no case shall th e usufructuary be respon sible fo r debts exceeding t he benefits under th e usufruct. i) Except when the contrary intention ap
. property govern (Le. replacement upon termina tion). (See pp. 131-132). .b . O n fruitful stock1) Replace ordinary (usual) losses with th e young. 2) If a part of the stock perishes, th e usufruct
subsists on th e remainder. 3)
If a ll perish, th e usufructuary should deliver th e remains t o th e owner.
i) Th e loss must b e due to "some uncom mon event in th e above two D. Usufruct on vineyards and woodlands (Arts. 57,5-576).
Note : It should be observed, firstly, that ·this i s o f rare application now to forest lands because of th e "Regalian Doctrine" governing natural resources under the Constitution. Secondly, Section 47 of th e Revised Administrative Code requires a license fo r gathering forest products. a. Th e usufructuary should follow th e practices of th e owner. b. In default thereof, t he custom o f t he place should be observed.
c. The usufructuary must replace dead trees, un less it would be impossible or burdensome, in which case he may demand that the owner clear th e land. E. Usuf1'Uct on a right o f action (Art. 578). a. Th e usufructuary ma y compel th e owner to sup port the action with the proofs he may have. b. After the property is recovered; the usufruct is upon the thing thus recovered. 130
•
•
•
d. Th e same rule applies t o a ny periodical payments due from the owner. H. Usufruct over deteriorable p1' ope1'ty (Art. 573). a. Th e usufructuary must use i t i n accordance with th e purpose intended. b. He is not obliged to return the thing except in its condition at th e termination of th e usufruct. c. He must indemnify th e owner fo r deterioration due to his (usufructuary's) fraud or negligence. 1. Usufruct of consumable property (Art. 574) ("Qua. si-usufruct"). a. If the things were appraised at delivery, the usu fructuary must pay their appraised value at th e termination of the usufruct. 131
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b.
were not appraised, he must return the same kind and quality OR pay the current price at the expiration of the usufruct. If they
c. In reality, the nature of the transaction is that of s i m p l e loan." Such usufructs have been in cluded in the Code because u ni versal usufructs often include consumable property (Manresa). CHAPTER 3
OBLIGATIONS OF ,THE USUFRUCTUARY ART. 583. The usufructuary, before entering upon the enjoyment of the property, is obliged: (1) To make, after notice to the owner or his legitimate representative, an inventory of all the property, which shall contain an appraisal of the movables and a description of the condition of the immovables ; (2) To give security, binding himself to fulfill the obligations imposed upon him in accordance wi th this Chapter. (491) ART. 584. The provisions of No. 2 of the pre ceding article shall not apply to the donor who has reserved the usufruct of the property donated, 01' to the parents who are usufructuaries of their chil when the parents contract dren's property, a second marriage. (492a) ART. 585. The usufructuar y, w h a t e v e r may be the title of the usufruct, may be excused from the of making an inventory or of giving-se curity, when no one will be injured thereby. (493)
586. Should the usufructuary fail to give in the cases in which he is bound to give it, the owner may demand that the immovables be ART.
132
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placed under administration, that the mo vables be sold, that the public bonds, instruments of credit payable to order to bearer be converted into re gistered certificates or deposited i n a bank public institution, and that the capital or sums m cash an d the proceeds of the sale of the movable prop erty be invested in securities. The interest on the proceeds of the sale of the . movables and that on public securities and bonds, and the proceeds of the property placed under ad ministration, shall belong to the usufructuary. Furthermore, the owner may, if he so until the usufructuary gives security or is excused from so doing, retain in his possession the in usufruct as 'administrator, subject to the oblIga tion to deliver to the usufructuary the ne t proceeds thereof, after deducting the sums which may be ag r eed upon or judicially allowed him f or such ad ministration. (494) ART. 587. If t he usufructuary who has not security claims, by of a promise under oath, , the delIvery of the furniture necessar and that he and his family e a owed to live in a house included i n the usufruct, the court ma y grant this petition, after due consideration of the facts of the case. The same rule shall be observed with respect to implements, tools and other movable property ne cessary fo r an industry or vocation in which he is engaged. If the owner does not wish that certain articles be sold because of their artistic worth or because they have a sentimental value, he ma y demand their delivery to him upon his giving security for the payment of the legal interest on their appraised value. (495) , 133
.1
, l
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ART. 588. After the security has been given by th e usufructuary, he shall have a right to all the proceeds and benefits from the day on which, in accordance with t he title constituting the usufruct, he should have commenced to receive them. (496) ART. 589. The usufructuary shall take care of th e things given i n usufruct a s a good father of a family. (497) . ART. 590. A usufructuary who alienates or leases his right of usufruct shall answer for any in usufruct may suffer damage which the through the fault or negligence of the person who substitutes him. (498)
ART. 591. If the usufruct be constituted on a flock or herd of livestock, the usufructuary shall be obliged to replace with th e yeung thereof th e animals that die each year from natural causes, or ar e lost due to the rapacity of beasts of prey. If th e animals on which the usufruct is constituted should all perish, without t he fault of the usufructuary, on account of some contagious disease or any other uncommon event, the usufructuary shall fulfill his obligation by delivering to the owner th e remains which may have been saved from the misfortune.
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By ordinary repairs ar e understood such as ar e required by the wear due to th e na t ural use of th e thing and are mdlspensable f or Its preservation. Should the usufructuary fail to make them after demand by the ownel', the latter may make them at the expense of th e usufructuary. (500) ART. 593. Extraordinary repairs shall be at t he expense of t he owner. The usufructuary i s to notify the owner when the need f or such repaIrs is urgent. (501) ART. 5 9 4 . If the owner should make the extraordinary repairs, he shall have a right to demand of the usufructuary t he legal interest on the amount expended f or the time that t he usufruct lasts. Should he not make them when they ar e indisth e usupensable f or the preservation of the fructuary m ay make them; b ut he shall have a rIght to demand of the owner, at the termination of the usufruct the increase in value which the immovable ma y have acquired by reason of repairs. ,(502a)
Should the usufruct be on sterile animals, it shall be considered, with respect to its effects, as though constituted on fungible things. (499a)
ART. 595. The owner may construct any works and make any improvements of which the immovable in usufruct is susceptible, or make new plantings thereon if it be rural, provided that such acts do no t cause a diminution in the value of the usufruct or prejudice the right of the usufructuary. (503) . ART. 596. The payment of annual charges and taxes a nd of those considered as a lien on the fruits. shall be at the expense of the usufructuary for all the time that the usufruct lasts. (504)
ART. 592. The usufructuary is obliged to make the ordinary repairs needed by the thing given in usufruct.
ART: 597. The taxes which, during t he usufruct. may be imposed directly on the capital, shall be at the expense of the owner.
134
135
. Should th e herd or flock perish in part. also by accident a nd without the fault of the usufructuary, th e usufruct shall continue on the part saved.
OUTLINE OF PHILIPPINE CIVIL LAW
OUTLINE OF PHILIPPINE CIVIL LAW ,
If th e latter has paid them, the usufructuary shan pay h im t he proper interest on the sums which ma y have been paid in ' that character; and. if th e said sums have been advanced by the usufructua- ' ry , he shall recover the amount thereof at the ter mination of the usufruct. (505) ART. 598. If th e usufruct he constituted on th e whole of a patrimony; an d if at the time of it s constitution th e owner has debts, the provisions of articles 758 an d 759 relating to donations shall be applied, both with respect to t he maintenance o f t he usufruct an d to th e obligation, of the to pa y such debts.
Should the immovable ' be attached or sold judi cially f or the payment of the debt, the owner shall be liable to usufructuary for whatever the lat er mav lose by reason thereof. (5U9)
The same rule shall be applied in case the owner is obliged, at the time the usufruct is constituted, to make periodical payments, even , if ' there should be no knovvn capital. (506) ART. 599. The usufructuary may claim a ny ma tured credits which form a part of the usufruct if he ha s given or gives the proper security. If h e ha s been excused from giving security or has no t been able to give it, or if that given is not suffi cient, he shall need the authorization of t he owner, or of the court in default thereof, to 'collect such credits. The usufructuary who ha s given security may use the capital he has collected in any manner he ma y deem -proper. -The usufructuary who has not given security shall invest the said capital at inte rest upon agreement with the owner; in default of such agreement, with judicial authorization; and, in every case, with security sufficient to preserve the integrity o f t he capital i n usufruct. (507) ART. 600. The usufructuary of a mortgaged im not he obliged to pay the debt ,fo r movable ,the security o f which the mortgage w as constituted. 136
.
ART. 601. The usufructuary shall be obliged to notify th e owner of any act of a third person, of which he may have knowledge, that may be pre jud ic ia l to the rights of ownershIp, an d he shall be liable should he not do so, fo r damages, as If they h ad been caused through his o wn fault. (511) 602. The expenses, costs and liabilities in brought with regard to th e usufruct shall be 'borne by the usufructuary. (512) , ART.
I. Obligations of the u s u f r u c t u a r y b e f o r e exercising usufruct:
the
'.
A. To make (Art. 583). a. The immovables must b e described; the movables must be appraised (because movables are easily lost or deteriorated). b. The owner ,must be previously, notified bu t need no t be present. c. ' Form: Any form except when immovables ' ar e involved, when a public instrument is prescribed (Art. 1358) to affect third persons. d. Exception: No inventory is necessary when no one would be prejpdiced (Art. 585) (a s in usu fruct of pension or incorporeal rights). e. In case of failure t o make th e inventory, th e effect is the same as in failure to file a bond (see post, page 138)'.
th e performance of th e usufruc, B. To give a tuary's duties ' a. Exceptions: No bond is required i n the cases: 137
I
I
1
j
OUTLINE OF PHILIPPINE CIVIL LAW
OUTLINE OF PHILIPPINE CIVIL LAW
1) When no prejudice would result, e.g., usufruct over life annuity (Art. 585).
3) The usufructuary can
not collect credits ue, or make invest 'm ,ents of the capital without the consent of the owner or of th e Conrt (Art. 599) until the bond is given.
2) 'When th e usufruct is reserved by:
i ) T he donor (Art. 584). Reason: Gratitude on the donee's part demands that th e donor be excused from filing the bond. ii) The parents (unless they remarry); provided the child's property does not exceed P2,000 (Arts. 585 and 326). . 3) In case of
(Bond by oath). . i) In this instance, t he usufructuary claims necessa1'y furniture, a dwelling for him. self and his family, implements necessary for his trade. ii) He takes an oath to take care of the things and restore them (Art. 587). iii) He cannot alienate nor lease the thing o r t h e r i g h t under usufruct; for that would mean that he does not need th e dwelling, implements, and furniture ' (Manresa).
II. obligations 0 . the usufructuary during the usufruct. A. 0 take of the thing as a good father of a family (Art. 589). a. When damages a re caused to the property b y t he fault or negligence of t he usufructuary, t he naked owner need not wait for ·the termination of the usufruct before bringing .th e action to recover the proper indemnity (Sanchez Roman, Navarro Amandi). b. Abusive acts entitle t he owner t o demand its ad / . ministration, subject t o the usufruct (Art. 610). care
va. 01'dinary-The usufructuary must make them. (Art. 592). 1) What a r e ordina.r y repairs? i) These consist of repair of damages due to normal use; and ii) They a re indispensable for preservation. iii) Compare Art. 592 · with Art. 573. Observe that Art. 573 refers to deteriorations of the thing caused by "wear and tear," in spite of repairs. 2) I f the usufructuary fails to make ordinary repairs, the owner may, after demand, make
. b. Effect of the bond: Retroactivity (Art. . 588). The usufructuary· is to al l the fruits from the time he should have begun to receive them. c.
Failure to
bond: Effect (Art. 586).
1) The owner shall have t he following options: i) ReceiveTship of realty, sale o f movables, deposit of securities, or. investment of money; or ii ) Retention of the property as administrator. 2) The net product (fruits) less administration expenses, fixed by agreement o r b y t h e Court, shall be delivered to t he USUfructuary, 138
l
them a t the usuf1'uctuary's expense. of t he b. Extraordinary repairs are for the owner (Art. 593) bu t th e usufructuary should notify the owner of t he urgent need. 1) What are extraordinary .repairs ? i) These ar e required by exceptio' nal circumstances, whether or n ot necessary for the preservation of the thing; or 139
OUTLINE OF PHILIPPINE CIVIL LAW
ii ) Those required by natural u se b ut no t i n
dispensable fo r preservation (Manresa).
OUTLINE OF PHILIPPINE CIVIL LAW
D. The usufructuary
notify t he owner of the urgent need f or extraordinary repairs (Art. 593) and o f a ny, acts detrimental to the ownership (Art. 601). /
2) When made by the owner: i) Legal inte1'est must be paid by the usu fructuary on t he amount, while the usu fruct lasts (Art. 594, p. 1). ii) This means that th e usufructuary can extraordi not compel th e owner to na.ry repairs. 3) Extraordinary repairs may be made by the usufructuary (if they ar e indispensable and the owner fails) but: '
F. The usufructuary answers lo r t h e f a u lt o r negligence of th e or lessee o r agent '(Art. 590). G. Rules gove1'ning the destruction of the termination of usufruct (Art. 608).
i) The usufructuary may demand t he plus value at t he end of the usufruct. ii ) He may also retain the property until he is paid (Art. 594, p. 2).
2) If he does no t rebuild-the interest on the
C. .Taxes and Charges during usufruct: a. The following a re paid b y usufr.uctuary (Art. 596 ). 1) A nnual taxes and charges, including real estate t ax (Quirante vs. Quirante, 40 ' (CA) , OG, 4t h SUPP., No.8, p. 242). The ruling in th e , case of Rizal Mercado Hidalgo (67 Phil. 608) that th e owner should pa y th e land ta x seems contrary to . provisions. o f t he 'Civil Code. 2) Taxes on the fruits.
b. The following ar e payable by the owner: Taxes directly on the capital (not annuai)1) If paid by the owner-he is entitled to interest on th e payment (Art. 597). 2)
paid by the usufructuary-the latter is entitled to reimbursement at termination; with a right of reten.tion. (Art. 612).
If
140
E. The cost of litigation oveJ' the usufruct is borne by the usufructuary (Art. 602).
a. When th e insurance is taken by [Art. 608, (1)]: 1)
If th e owner rebuilds-the usufi'uct subsists on the new building. '
,insurance money is paid t o t he usufructuary. b. When th e insurance is taken because' th e usufructuary
th e only, (Art. 608, p.
2) .
to the insurance money (no interest thereon being due to the usufructuary),.
1) The owner is entitled
2)
If he does n ot rebuild, t he usufruct continues over the remaining land and materials; or the owner may pay interest on the value of both (Art. 607) .
3)
If t he owner rebuilds, the usufruct does not continue o n the new building; b ut 'the must pay interest on the value of the land the ol d materials (See Art. 607).
c.When the insurance is taken by t he
only (this situation i s not
by t he Code).
1 ) T h e insurance money goes to the usufruc tuary. This consists of the value of his insurable interest. 141
OUTLINE OF PHILIPPINE CIVIL LAW
2) There is no obligation to rebuild. 3 ) T he usufruct continues on the land. in the insurance 4) The owner has no money. Rules governing the destruction of a a.
If th e
not
forms part of a n immovable
usufruct-
1) The usufruct continues over th e lanel. and remaining materials.
b.
th e building the owner does no t rebuild,. th e usufruct continues over the land and t he . . 2) If t he owner rebuilds; usufructuary must to occupy th e allow the . an d to use of the materIals; bu t th e owner nlUst p'ay interest the value of both the land and t he materials.
EXTINGUISHMENT OF USUFRUCT .
Usufruct ·is extinguished: By the of unless a contrary intention clearly appears; (2 ) the expiration of the. period fo r which i t reso was constituted, or by the fulfIllment of condition provided in the titl€ creatmg th e u sufruct; (3) By merger of the usufruct and ownership in same person; ( 4) B y of the usufructuary; (5) By the. total loss of the thing in usufruct; ART.
142
of
per
I. Causes of t he termination of usufruct. A. Death of the usufructuary; EXCEPTa. In multiple usufructs: it ends at t he death of t he last survivor (Art. 611). b.
If t he is fixed by reference to th e life ' of another or there is a ' 'condition: the to the heirs of the usufrucright is the ful tuary of the term the fillment of the condition (Art. 6Q6).
c.
When a contrary intention ' clea,rl y appears. 1 ) T he Romans, ' Italians and the French held that usufruct is personal and therefore death produces' th e termination 0f t he usu fruct 'even i f there ail agreed period o r r e s0lutory condition. ' and commentator:s hold t he contrary, basing their opinion on the ob th e servation that since the Code rights, th e usu alienability of fruct can no longer be considered strictly personal. Moreover, they invoke t he binding effect of contracts to support th e opinion that t he period will control over t he death o f the usufructuary, unless the is stipulated
If
CHAPTER 4
PHILIPPINE CIVIL
(6) By the termination of the son constituting the usufi.'uct; (7) By prescription. (513a)
If t he usufruct
1)
•
OUTLINE
other hand assumes that' Valverde on . extinction by death of the uSlrfructuary is a feature of usufructs, and that even death termiif a period is agreed nate the usufruct, unless th e contra1'y is agreed. This also is t he opinion of t he Spa nish Supreme Court (Sent. of Oct. 1, 19].9) 143
OUTLINE OF PHILIPPINE CIVIL LAW
OUTLINE OF PHILIPPINE CIVIL LAW
a n d o f th e framers ,of th e Civil (Art. 603, "unless a contrary intention clear ly appears"). cause of new Code by stating as extinction "the death th e usufructuary unless the contrary clearly appears" 'to follow th e eclectic opinion, making the death prevail over th e other causes of ex tinction, unless incompatible with th e plain intention th e parties. However, it is not necessary to expressly exclude d e a t h a s a n extinctive ground; clear intent suffices. B.
of th e period or fulfillment of th e resoluto?' y condition.
a. In of juridical persons, th e period can n ot ex ceed 50 years (Art. 605). , b. Th e period an d resolutory condition must be to prej udice strangers. C.
Merger of th e usufruct and the Waive?' of th e a. Renunciation must be (Manresa). does no t need the owner's consent · (Navarro Amandi). b. If made i n of creditors; t he waiver may be 'rescinded by them, through proper action , Art. mort c. If the right of gage lasts until its payment, or the expiration of the period of usufruct. loss of the property. Exti nct ion a. Total loss of th e building, insured or (see "Obligations during the Usufruct," ante, pars. (G) an d (H), page 141. b. Partial l o ss : T h e usufruct continues on the re mainder. ' 144
c.
Exp' ropriation: Owner's option (Art. 1) To replace t he thing with another thing havin g .th e same value and conditions, or 2 ) T o pa y legal on th e money, giving security fo r payment. 3) But t he condemnor m ay indem'n ify and the usufructuary; in this ly the case, Art. 609 does no t apply.
-
F. Resolution (or termination) of the right to constitute th e usufruct (e.g. usufructs constituted by a vendee , a retro terminate upon redemption). G. Prescription , (adverse possession against the owner ' or t he usufructuary). NOTE: Abuse (improper use) is n ot a cause for ex tinction,. bu t if abuse ' results in loss, the owner may recover possession, pay in g the net fruits to th e usufructuary. ( Art. 610) .
,
,
,
604. If the thing given in ,usufruct ·should be lost only in part, the continue on the remaining part. (514) ART. 605. Usufruct cannot be constituted in fa vor of a town, or association fo r more than fifty years. If it has been constituted, an d before the of such period the town is abandoned, or the corporation or association is dis solved, the usufruct shall be extinguished by reason thereof. (515a) ART. 606. A usufruct granted time that may elapse before a thii'd person attains a certain age, shall subsist fo r the number of years fied, even if the third person should die before expires, unless such usufruct has been ex-
OUTLINE
OF PHILIPPINE CIVIL LAW
gratlted only inconsideration of th e exis- , tence of (516) ART. 607. If th e usufruct is on , part, 'movable property of which a latter should be destl'nyed m an y manner and whatsoever the usufructuary shall right materials. th e land and The same rule shail be applied if the usufruct th e constituted a building only should the owner should be destroyed. But in such a case, to construct another he shall have th e land an d to a to use of ,th e materials, being obliged to pay to during the conti.nuance. of the USUfruct, the sum eqUlvalent to the value of the rest upon land and of the materials. ART. 608. If th e the insurance of the tenement glVen fl'uct, the former shall, in m .be the enjoyment th e constructed, or shall receIve mterest on m·, indemnity if the owner does not WIsh to rebuild. Should the usufructuary have' refused to contri bute to insurance, th e owner insuring t he shall .receive the full amount ment alone, the \)f the insurance indemnity in case of loss, saving always the right granted to the in th . a rt ic le . (5 18 a) , Should the thing in usufruct be exobor public use, .the owner 1 to replace it With another thmg of the value and of similar conditions, or to p ay t he usufructuary the legal interest on amount of the indemnity f or the whole period of the usufruct. 146
PHILIPPINE ' CIVIL
If the
owner chooses' th e alternative, he shall for t he payment of interest. (519) ART. 610. A usufruct is not extinguished by bad the thing in usufruct; but if the abuse should injury to the owner, latter cause may demand that the thing be delivered him binding himself to p ay annually to the th e' ne t proceeds of the same, arter deducting the expenses and the compensation which may be al lowed him for its administration. (520) ART. 611. A usufruct constituted in favor of several persons living at time of it s constitu tion shall n ot be extinguished until th e death of the last survivor. (521) , ART. 612. Upon the termination of the usufruct, the thing in usufruct shall be delivered to t he own,· er, without prejudice to the right of retention taining to the usufructuary or his heirs fo r taxes and extraordinary expenses which should be reim bursed. After the delivery has been made. the se·· curity or mortgage shall be cancelled. (522a)
give
1. Obligations
of the usufructuary a t t he expiration of t he usufruct: A. To th e thing, unless there is a right of RE TENTION fo r the "plus value" due to th e usufruc tuary's advances fo r extraordinary repairs, and taxes on the capital. a. If the property is deteriorable (Art. 573)1 ) T o return it in its present condition; 2 ) To answer f or damages due to h is fault. b. If the property is consumable consists of sterile cattle (Arts. 574 & ' 591) : ' 1) If appraised, to return the appraisal value; 2) If not appraised, the usufructuary's option is--
147
OUTLINE OF PHILIPPINE CIVIL LAW
quantity and qua i ) T o restore an lity; OR ii ) To pay th e market value at 'the termi nation. B.
C.
To pay interest on th e amount spent by the owner fo r extraordinary repairs (Art. 594) or taxes o n t he capital (Art. 597). To indemnifY the owner fo'r losses due to the neg ligence of th e usufructuary or of his transferees (Arts.
II. Rights of usufructuary fruct.
a l t · th e expiration
of th e usu
A. To collect reimbursements from th e owner: -a. Fo r indispensable repairs made b y the usufructuary, in an amount equal to t he plus value (Art.. 594, p. 2). b. Fo r taxes on the capital advanced, b y the usu fructuary (Art. 597, p. 2) . c. Fo r damages caused to the 581). B. To 1'etain t he thing until reimbursement ' is made. C. To 1'emove improvements made by him, bu t without (Art. 579" last part) OR injuring th e To s et o ff th e value of improvements against damages caused to the property under usufruct (Art. 580) . III. Obligations' of t he owner at of th e usu fruct. A. To make reimbursement of t he advances by the usu fructuary. ' B.
To cancel the bond, upon diseharg,e of th e usufruct uary's obligations.
C. To
of rural lands by t he usufructuary respect fo r th e balance of th e agricultural year (Art. ' 572, last part).
148
Title
VII.-EASEIUENTS OR SERVITUDES
I
CHAPTER 1
EASEMENTS IN GENERAL 1.
In -General. A. Concept-A i s a r ea l right constituted on tenement (corporeal immovable property) whereby th e owner th e latter must refrain from doing o r must allow something t o be done on his pro perty, fo r the benefit o f another person or tenement (Sanchez Roman). is a burden imposed over a tenement fo r th e benefit of another belonging to a different owner, and which obliges th e owner of the servient estate to suffer certain acts of use by the dominant owner or to abstain from exercising certain rights inherent to his ownership." (German Civil Code). a. Servitudes (easements) under Philippine la w dif fe r from easements of Common Law in that-easements ar e in favor of a dominant (Predial servitudes). 2) Servitudes may , be predial, or personal (in favor persons o r o f a community, without a dominant tenement). 1)
i) Perpetual of right to use win dows on certain holidays is a personal servitude (TS Nov. 30, 1908). b.
The granted to maintain wires across a lot constitutes a servitude (TS 29 Dec. 1899; 9 Apr. 1923; 21 Oct. 1920).
B. Elements
a.
of Servitudeis a real right of sion: It
149
use,
OUTLINE OF PHILIPPINE CIVIL LAW
b.
(lands It is constituted over estates or and structures only, i.e., immovables by nature) ; is for the benefit of another who is not owner of the e1'ed estate. not consist in the ·doing of an aci, unless It the act is accessory t o a predial servitude (obligation
c. It
d.
C. Implications
of Servitudea. As Real Right-
1) It gives rise to actio i n re m against any possessor of the servient estate. b. As enjoyment of another's property (jus in re . 1)
It
cannot ·.exist over ' one's own property.
2) Merger extinguishes the servitude. c.
As a limitation upon t he servient owner's rights another's benefit:
1) Servitudes are not being an abnormal limitation on th e rights of ownership. 2) They ar e from the servient or dominant 3) They must r.esult ..in utility (benefit) to .th e dominant estate, as distinguished from its ·owner.
4) Their exercise is limited by the necessity (needs) of th e dominant owner or estate (TS 17 Nov. 1930) (Castan) . D. Characteristic features
servitudes.
Inherenc e (inseparability) (Art. 617). They are inseparable from the tenement which . they actively or passively belong, as originally contemplated (Art. 626). 150
OUTLINE OF PHILIPPINE CIVIL LA
Cannot be alienated tely from the tenement affected or benefited. c. Indivisibility (Art. 618). 1) In case of division of the tenement between tw a or more persons: each shall bear it on the part corresponding to him. 2) In case of division of the dominant tenement: any of t he n ew owners m ay us e t he servitude in full; bu t without increasing th e burden. Perpetuity-unless extinguished in the modes provided b y the Code, th e servitude lasts as long as the dominant and / or servient estates exist. E. Servitude distinguished from lease of landa. A lease of land involves rightful possession and use without ownership.. . b. Servitude over land involves rightful use without possession and ownership (Salmond). Section I-Different Kin ds of Easements
or 613. An is enimposed upon an immovabie for the benefit immovable belonging to a different owner. The immovable in favor of which the easement is is called the dominant estate; which subject thereto, the servient estate. (530) ART. 614. Servitudes' may also be established the benefit of a community, of one or more estate does not bewhom the long. · (531) ART. 615. maybe or :disnonapparent. continuous, apparent Continuous easements are the use may be incessant; without th e of any act man. 151
. I
PHILIPPINE CIVIL LAW
Discontinuous easements are those which ar e used at intervals a nd depend upon the acts of man. Apparent eaS,e ments are those which are made known a nd a re continually kept i n view by external signs that reveal the use a nd enjoyment of the same. Nonapparent easements are those which show no external indication of their existence. (532)
OUTLINE OF PHILIPPINE CIVIL LAW 1.
Classification of Servitudes:By t he exercise:
A.
a. Continuous-their u s e i s or may be incessant without intervention of an act o f m an (drainage, light and view, dam) (Art. 615). b. Discontinuous-their exercise depends upon acts of man, and their use is at long or short inter(e.g. right of way, watering animals). 1) But easement of aqueduct is by law as continuous an d apparent even If the passage o f water is n ot continuous, or it is used at stated days or hours only (Art. 646). ' ,
ART. 616. Easements are also positive or nega-
tive.
A positive easement is one which imposes upon the ' owner of the servient estate the obligation of allowing something to be done or of doing it himself, and a negative easement, that which prohibits lhe owner of the servient estate from doing something which he could lawfully do if the easement / did not exist. (533)
B.
a. Apparent-those made known an d kept in view b y external signs which theIr use an d enjoyment. (e.g. right of way WIth permanent path; dam; window in a party wall).
ART. 617. Easements ar e inseparable from the estate to which they actively or passively belong. (534) ART. 618. Easements ar e indivisible. , If the servient estate is divided between two or more persons, the easement is n ot modified, a nd each of them must bear i t on the part which 'corresponds to him. If it is the dominant estate' that is divided between two or more persons, each of them may use the easement in its entirety, without changing the place of it s use, or \ making it more burdensome in any other way. (535)
ART. 619. Easements are established either by law or by the will of the owners. The former a re . called legal and the latter voluntary easements. (536)
152
By the indication of their existence:
b. Non-Apparent--those w h i ch s ho w n o e x te r na l sign of their existence (e.g. distance, non altius tollendi). C.
By th e object: owner must (1) allow a. Positive-The something to b e done i n his property (servitus i n patendo) or ( 2 ) d o it himself (servitus in fa ciendo) (voluntary servitudes only). These ar e called "servitudes of intrusion and/or service."
b. Negative-the servient owner,must refrain from doing something (in non faciendo). This is called a "servitude of limitation or restriction:" 'D. By their origin (establishment) : a. Voluntary-Constituted b y th e will of t he parties or o f a testator. 153
OUTLINE OF PHILIPPINE CIVIL LAW
b. Legal-Constituted by law: 1) Fo r public 'u se-governed by special laws or
the Civil Code. 2) For private interest-governed by the Civil Code o r general or local laws, subject to mo dification by agreement (Arts, 634-636) if the law is not violated and no damage is' caused to third persons. c. M i x e d - - p a r t l y voluntary and partly legal.
E. By th e party benefited: a. Real (predial)-servitude imposed on a tenement fo r th e benefit of another tenement belonging to a different owner (easement proper). b. Pe' rsonal-servitude imposed fo r the · benefit of a person or community to whom the servient estate does not belong. See No.2, p. 149. 1) An agreement · based on a consideration whereby t he owners of a piece-of land grant a person the right to use a footpath binds said right binding on owners. And to make third persons who may acquire ' said land from th e grantors, the grantee of .th e ease ment is entitled to have the same annotated in the certificate o f title (Bernardo vs. Court of Appeals .et al. GR L-7248, May 28, 1955).
' iction on the servient F . B y the character Of the j'estr owner. a. Servitudes of sufferance 01' intrusion (in pa tendo) , which allow the dominant owner to do something inside the servient estate. b. Servitudes of abstention (restriction) in which · the servient owner must refrain from doing something he could normally do. 154
OUTLINE OF PHILIPPINE CIVIL LAW
. c. Servitudes of service which require th e servient owner to do something for the dominant owner in relation to a predial easement. Section 2.-Modes of Acquiring Easements
ART. 620. Continuous and apparent easements are acquired either by virtue of a title or by pres cription of ten years. (537a) ART. 621. In order to acquire by the easements referred to in the preceding article, the time of possession shall be computed thus: in positive easements, from the day on which the own er of the dominant estate, or the person who may have made use of the easement, commenced:to exer cise it upon the servient estate; and in negative easements. from the day on which the owner of the dominant estate forbade, by an instrument ac knowledged before a notary public, the owner (If an act which the servient estate, from would be lawful without the easement. (538a)
ART. 622. Continuous nonapparent easements, and discontinuous 011es, whether apparent or not. may be acquired only by virtue of a . title, (539) ART. 623. The absence of a document or proof showing t he origin of a n easement which cannot he acquired by prescription m ay be cured by a deed of recognition by the owner of the servient estate or hy a final judgment. (540a) ART. 624. The existence of an apparent sign of easement between two estates,. established or main tained by the ownet· of both, shall be considered, should either of them be alienated, as a title in or de r that the easement may continue actively and passively, unless, at the time the ownership of the two estates is divided, the contrary should be pro-
155
OUTLINE OF PHILIPPINE CIVIL LAW
vided in the title of conveyance of either of them, or t he sign aforesaid should be removed before the execution of the deed. This provision shall also apply in case of the division of a thing owned in common by two or more persons. (541a) ART'. 625. Upon the establishment of an easement, all the rights necessary for it s use are considered granted. (542) ART. 626. The owner of the dominant estate cannot use the easement except for the benefit of the immovable originally contempla:ted. Neither can he exercise t he easement i n any other manner than that previously established. (n) 1. Acquisition o f se1'vitudes:
A. Modes of acquisition: Servitudes ar e acquired by a. Title-a juridical ac t or provision of law suffi cient to create th e encumbrance, whether inter vivos or mortis causa. This i s essential to-1) Continuous nonapparent servitudes; apparent 2) Discontinuous servitudes, or not. b. Prescription o f 10 · years. This is applicable only to continuous and apparent easements or servi tudes (Art. 620). 1) Exception.: The following ar e not acquired by prescriptioni) Continuous but nonapparent servitudes (e.g. "non altius tollendi," distances). ii) Discontinuous servitudes, whether ap p a r en t o r nonapparent (e.g., right of way) (Art. 662). (Note: th e Supreme , Court ha s ruled that although a right o f way ' is a discontinuous easement it may
156
OUTLINE OF PHILIPPINE CIVIL LAW
be acquired in favor of a community by ' immemorial prescription (Municipality of Dumangas vs. Bishop o f J ar o 34 Phil. 541). Actually, the decision i s premised on Art. ,567 o f t he old Code o f 1889 (now Art. 652).
aa ) These servitudes require eitheraaa) Title (deed o r testament or provision of law) ; aab) Deed of recognition of the servient Qwner; aac) Final judgment (Art. 623). Computation of the prescriptive period (for continuous apparent servitudes) :
i) Positive servitudes: counted from the day their exercise commences. ii) Negative servitudes: counted from the form al p1"ohibition to t he servient owner to do an y act opposed to th e servitude (Art. 621). There must be a notarized demand made upon t he servient owner.
c. The establishment o f a n apparent sign o f a servi tude between two tenements owned by th e same person, when o ne tenement is alienated gives rise to an , easement, unless ( a ) t h er e ar e contrary stipulations, (b) or the sign i s effaced. Although th e l aw states that th e easement i s t o "continue," actually the servitude arises for th e first time upon alienation (Art. 624). ' 1) Mere silence of th e deed does no t ba r the right to th e easement.
B. Effect of acquisition: a. Once acquired, the right to exercise th e servitude arises.
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1) Vol un taTY easements must b e recorded in t he Registry of Property in order to prejudice third persons (Arts. 2 a nd 23, Spanish Mortgage Law). Recording is n ot necessary for legal easements. b.
It (servitude) includes all the rights necessary f or its use and exercise (repairs, maintenance, etc.) (Art. 625).
Section
Obligations of the Owners of the Dom ina nt and Servient Estates.
3.-Rights and
ART. _ 627, The owner of the dominant estate may make, a t his own expense, on the servient estate any works necessary f or the use and preservation o f t he i t or rendering it servitude, b ut more burdensome. Fo r this purpose he shall notify the owner of the servient estate, and shall choose th e most con venient time and manner so· as to cause the least inconvenience to the owner of the servient estate. (543a) , ART. 628. Should, there be several domin,an t es tates the owners of all of them shall be obliged to contribute to the expenses referred to i n the preced in g ,article, in proportion to the benefits which each may derive from the work. Anyone who does n ot wish to contribute may exempt himself by renoum· ing the easement for the benefit of the others. If the owner of the servient estate should make use of the easement in any manner whatsoever, he shall also be obliged to contribute to the expenses in the proportion stated" saving an agreem.ent to the contrary. (544)
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ART. 629. The owner of the servient estate can no t impair, in any manner vvhatsoever, the use of the servitude. Nevertheless, if by reason of the place originally assigned, or of the manner established fo r the use of the easement, the same should very in convenient to the owner of the ser vient estate, or should prevent him from making any important works, repairs or improvements thereon, it m ay he changed at his expense, provided he offers another place or manner equally convenient and in such a way' that no injury is caused thereby to the owner of the dominant estate or to those who may have a right to the use of the easement. (545) ART. 630. The owner of the servient estate re tains the ownership of the porti·::m on which the easement is established, and may use the same in such a manner as not to affect the exercise of the easement. (n ) 1. Rights anel obligat i ons O f th e A. The dominant owner-
o w n e r s --
a. Rights (Art. 627) : 1) To exercise the right of easement. 2 ) T o d o all t he necessary w or k for th e u se a nd the easement buti) He must do so at h is expense; ii) There should be no alteration o r increase of t he burden. He must choose t he time and manner least inconvenient to t he ser- ' vient owner for making repairs. iii) Notice to the servient owner must be given. b. Obligat i ons : 1) To contribute t o t h e ex penses of maintenance in proportion t o t he benefit, if there a re sev eral dominant owners.
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OUTLINE OF PHILIPPINE CIVIL LA W OUTLINE OF PHILIPPINE CIVIL L AW If h e does, h e m ay b e enjoined. (Resolme vs. Lazo, 27 Phil. 416). 2) To contribute to the expenses o f maintenamce if he makes use of th e servitude (Art. 628 ,
i)
i) If unwilling to contribute, he may re-
nounce th e easement for the benefit of th e others (total renunciation being re quired, since th e servitude is indivisible). (Distinguish this waiver from that prounder Art. 488). 2) Not to alter o r increase th e burden o f t he servitude (Art. 627). i) Mm'e frequent use ' of the right of wa y (without increase of width, o r deposit of ' . materials outside i ts agreed boundaries) is not increase in the , burden (Valderrama vs. North Sugar Co., 48 Phil. 492). ii) Bu t th e servitude not extended to estates ' o ther than those ,originally i ntended (Art. 626), B. The se1'vient owner CArts. 629, 630).
'1
a. Rights: 1 ) T o retain of th e servient (Art. 630). of 2) To easement, when , it very, inconvenient, PROVIDED: i) He substitutes another place or form equally convenient, and ii) No injury is caused to th e dominant owner (Art. 629). 3) To exercise of the easement, if stipulated. of th e ' servient estate without 4) To make 630). affecting the easement b. Obligations: 1) Not to impai1' the manner.
. 160
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p. 2).
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,
Section 4.-Modes of Extinguishment of ART. 631. Easements ar e extinguished: .(1) in the same person of the owner ShIp of the dommant and servient estates; . (2) ,By nonuser fo r ten years; with respect to dlscontmuous easements, thi s period shall be computed the day on they ceased to be used ; and, wIth respect to continous easements, from the day on which an act contrary to the same took place: . (3) When either or both of the estates fall into such condition that the easement cannot be used, bu t it shall revive if the subsequent condition of the or either of them should again permit it s use, unless when the becomes possible, suf·· ficient time for prescription has elapsed, inaccol'dance with the pl'ovisions of the prece.d ing number; of the term or the fulfill(4) By the ment of the condition, i f the easement is temporary or conditional; (5) By the renunciation of the 'owner of t he dominant e s t a t e ; (6) By the redemption agreed upon between the owners of and servient estates.
(546a) ART. 632. The form or manner of using the easement may prescribe as the easement itself, andil1 the same way. ( 547 a)
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633. If the dominant estate belongs to sev eral persons in common, the use of the easement b y anyone of them prevents prese-ription with respect to the others. (548) ART.
I. Extinction of servit u d es (Art. 631).
A. Causes. a. M erge1' o f ownership of th e dominant and ser vient estates, , The merger must be absolute, per fect and definite; not merely temporary (Man resa) 1) Ownership of the dominant and servient es where tate does not merge in t he the owner of the dominant estate acquires only a part interest i n t h e servient e.s tate (Cabacungan vs. Corrales GR L-6629, Sept. 30, ' b. Non-user fo r 10 years (extinctive prescription). 1) Computation of th e period: i) Discontinuous easements : counted from th ,e day they cease t o be used. ii) Continuous easements: counted from th e day an .act adverse to th e exercise takes place (Ongsiaco v. Ongsiaco, L-7510,. Mar. 30, 1957). 2) The use by a co-owner of the dominant estate bars prescription with respect to the others (Art. 633). 3) S ervitudes no t yet exercise ,d can no t he ex tinguished .by non-user. i) Thus, the right t o claim th e exercise ·o{a legal easement does n ot prescribe (Fran cisco vs. Paez, 54 Phil. '2 39). c. Bad condition of the tenements, preventing it s exercise.
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OUTLINE OF PHILIPPI NE CIVfl. LA \\ .
1) In reality this is suspension merely ,(unless be it ripens into extinction by cause the law provides fo r a r evival of th e right when the condition of the estates per mits exercise anew. d. Expiratio n of t h e term or fulfillment o f the re so lutory condition. e. Waiver by t he dominant owner. 1) Must be s peci f i c , clear, exp1' ess (to distin guish i t from non-user) (Fuentes vs. Rivera (CA) 40 ·0G (Sup. 12) 106). This special l y t r u e for intermittent easements (Fran cisco vs. Paez 54 Phil. 239). f. Redemption agreed upon between th e owners. ALSO (but not mentioned by the Code) : g. Annulment of th e title to the servitude, h. Resolution of the r i g h t t o create the servitude (e.g. in the case of "pacta de retro," when th e property is redeemed) (Art. 1618). i. E x p1' op1' iation of the servient estate. j . Permanent impossibility to use t he easement.
B. Form of the use (e.g., width of t he of windows, etc.) also prescribes lIke the servltuae itself and in the same manner (Art. 632) (TS 3 March 1942). Cf . Art. 626, last part . NOTE: Prescription here is' both extinctive and acquisitive, unless the easement can not acquired by prescription. C. Effect of Regist r ati on of th e se1'vient est at e as f r om easement under Act 496 (L and Registr at ion
39-"Easements . . . shall continue to subsist an d shall be held t o pass with t he titl e o f owner of S11ip until rescinded or extinguished by 163
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- f . r y - e o f - e f r ) ) e r e r i e o t t c e o o s h e 6 h e r e a , n o t v o t e n 5 e s e v o p w x i n d a e p o e s 7 i m h e f s s e s o s a d m i i o t h o s e n e i s t c . e t i r h s d t e p t i e a t n a e p ' e s w i r c f t u h i n n e s . c o e o t d n o o h t e o i n A e d o l d h y h ( u d e i t o o s t t e e s y . t i t o p i d r w h t n e e , h r t e l o r e w s t a o n ) e s n n h m t e o o n i f d r n o o 9 t e l a d T h w o s e o o c v e i o a u h k d s b o t e r w d c u t t e e r 5 e a g u t t p r i c o e t f r l a h m n r o 7 : e e t n o w u i n o s d c s s n t . l h o o v u f l s o e u e i e a p h o r u a o y t s i T e n r d l , i h d A b t b H a e s m u m t d a , , o r e v l t e h n a e n t l r b e ( s l f t t a d d a . e n t o : o t r u n h u d o o a d i n a b n t f y e e t o . s p i e h l o . a m n r e i t a i a v f i a r n o s t o f o t f m l . d e e e s . e i o d h s t d a m o s i u l i n y ) t p s o ) s c n t h p u s d e e e o t y ' e i n n r 7 y t i o t n h e r c r . i r 5 o o e p t p t e , t e s d r f r h a a o s e s ) p b r d a 7 t r n i t 8 e i o v p g m e a n h u 5 s e c s t e s e p t i r o l . e t o a r s d t o n s e h r t e o t c a h r d t u t n 7 o e t s s y e s t o a e w r b s b t l e h i v p i u a t n r A e . n h i t e o e r p v e n r h f t r R d , . o ( y t f s l a s d w i r i r s t o l a , i r e f f e d s t b e e u t u i a l r n e s , A r g , h t o i y o . s f e e e ( l l h i o a . a a u n f d r o a o o r n t r n t a r ) ( s n c n n i n e e f d o u e o e o f t o v e o f r g r s i o o a t h o w t e 5 o a i i y h e u t o s h i e 5 d n n t y t s a r t l t n h a t t u i n i a i t 7 d s a n e o e f u l - a o n o a b a s v t e v r r f r e . a r a a f g I t r e d p i a u I d n m t h v t e i c m a l h e n y r l e n . . e a a r p e w h o f h s A l a s b e f m l s o e h ( i i T C o t P t f S t c ( a i c R o a s e . . . . p D e B S A f I
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, . t . e ; . s a n l 1 a e r ) y r s e . e i e 7 ) s p s t e a d b o t n e c h 5 n h r v n t i r i 5 r u r 4 2 o n t o d e r 6 e c o 9 r 6 a o o 4 1 p u c o o p O p A n 7 f d s s N 7 , n d ( 5 o r f i b ( u ; h u e . r o , t . e . r s g e ) o d d e u s h . g ' t t a t n n h . n o G r t e e r u ) . a i o o l n n i t a t t h f t A t i ; y f i A i a e i M O o t t c a i y a i t 8 l ( s i ( p r c 6 0 a c e i s t b e w h 5 m f t r s e a 4 3 n e , u e n h e 2 ; c f u l ) e d i p o p h s t e e t y t a r s n . o n , , d s . 7 t o e t i o u u c t ) e e t s 0 n i e g e f t a h r r r e b e y f 0 5 d 1 i e o o p a d n l f e u l i 5 t o y r y f 6 2 , r , o s f e n n g l f m t r c e f 7 7 . y i d h e d f r s i o y u t i p n t n l 2 p y e e l m t o o t o d t i e h . p l t I n u u L p 3 a a n t r i o r t t I v t n u r p o o r p o i i a g u I , e 1 c n d e l e g o b P o p d t ) . s n a , r t m A l . m n i ( o s n c y n h t a n e i ( s d c o a i l t t s t i v m d a B b s u c r e a l o n i t v n n i e o i n . i o u a s n A e h e o t n e o o h e r , t n i ) 9 h r t . s o s a r e v c c e t c . t r n t e e c n s e 5 o m o g i a r e r s c c n e u s n o a f n d a r 2 a . n y n w d l e e o a o i s ) r p i o f e ) e d d u d r l l o f s o l O n l i p e S t d r c f s t e s i s n o p e n . s ( e d . h i t s s r o t t , l a f a i h d e c l o e ' y s o e e e t r e s t a s s i c n e e r t a . t o s u e e c d f i e n e s r r e ; t v u a u s . e 1 r u f y h 1 u e u s h o a u n o o n h o d p t e f t c J a i a a ( n u t i n t s i o a i t t n o t a t p n c f n n 9 o e . c c c o p t a s a o u n , o o c i o n s s ' v e a 1 p s e i o p a s d e e i n n m e n v o c 1 i e e t ( n e i l v s e s e d n 1 e f i v a e e o y o s c e s b a n d p o p e S m s h e . t . c s h i d n a c i g e ' r e n e c h a r u e t ( o t r n r c m r r t h r n o r i i a h g o 1 f f a h a t a i i a s T p c O T t t o h W h W a o d W c f e o T d h t t e o n r n o a P c A a c . e a a : y r e ) ) ) e l ) r 5 a t s ) i p S ) . h 1 ) ) 2 3 ( l e e e 1 4 3 a e g 2 s t r r 6 p W n e h ( e o I A r t 7 B s . N u . a . . a a b c C . . B . A I I
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t t e - e f s . - e f h r o n r R b o v e e g o o n n c o u . o r o s n t e o d d o o d t i f h h M r h n n e c e r e i g t h b a h a e u s L r c r i e h e e t f t a r n e b b A h o y d a h y d t ( y e e p n h c e b T b d a h a g S a o ) s r 4 m t d e t e e o d ) e e 6 r v l b 4 c c n m i t 6 . b l e 7 n e w a o r . a i o 7 ) f b t t o r i r w r n t . o c f 6 b s o t k a e s ( m t o r 9 b 4 e . i A e ) A u e 4 ) n c ( t i m 4 m h 6 y c c e s e d c t e . n T 7 a ' n n j 6 8 s e b a a 3 A 7 a n ) m i . o 0 e ( d : r u t 8 h t r d d t . n h r . n c n s o t t t t 9 o o o r c r i 4 s d i A c a , i e . t h ( t c A A m A n f d s c c f i a r s a G a s a o e n o w n , o ( n O o r r d i n f s e i f r o v s i w e r o 6 t o o a a t , i e e e h s n 4 c h a e g s L t s e y T c n o , a d t n n e a c T n m r i n o r o o e u s i 4 t u a e e i i : u g t s : i t t s l c r r r s h e a i i t a t e n e i h s t i b A T F d g s r c A g t i v h e t i m h ) ) a f i f ) i 2 3 L w W r o E 1 . b
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