III. RIGHT OF ACCESSION
– the Accession – the
right of the owner of a thing, real or personal, to become the owner of everything which is produced thereby, or which is incorporated or attached thereto, either naturally or artificially Right pertaining to the the owner over its products and whatever is inseparably attached thereto, either naturally or artificially Does not apply to property belonging to public domain
Accession v. v. accessory Accessions are the fruits of, or additions to, or improvements upon, a thing. It includes in its 3 forms of building, planting and sowing, and accession natural such as alluvion, avulsion, change of course of rivers and formation of islands Accessories Accessories are things joined joined to, or included included with, the principal principal thing for the latter’s embellishment, better use or completion (e.g. frame of a picture, machinery in a factory) Accessions are not necessary necessary to the principal principal thing, the the accessory and the principle thing must go together. Both can exist only in relation to the principal
Accession not not a mode of of acquiring ownership ownership Accession is merely a consequence or incidence of ownership. Accession is an exercise of the right of ownership, ownership, an extension of dominion over a principal thing to an accessory
Kinds of accession 1. Accession discreta – – the extension of the right of ownership of a person to the products of a thing which belongs to such person o Based on the the principle of of justice for itit is just that that the owner of a thing should also own its fruits o It takes place place with respect to: natural fruits, industrial industrial fruits, and and civil fruits 2. Acession continua – – the extension of a right of ownership of a person to that which is incorporated or attached to a thing, which belongs to such person o Based on convenience and necessity that it is more practical that the owner of the principal should also own the accessory instead of establishing a co-ownership
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With respect to real property: a. Accession industrial (building, planting, sowing) b. Accession natural (alluvion, avulsion, change of river course, formation of islands With respect to personal property: a. Conjunction or adjunction – which may take place by inclusion or engraftment, soldadura or attachment, tejido or weaving, pintura or painting, and escritura or writing b. Commixtion or confusion c. Specification
Right of owner to the fruits General rule: all fruits belong to the owner of a thing Art 441 refers to accession discreta, the right of the owner of property by accession to everything which is produced thereby or with respect to what is produced by property Natural fruits include other products of animals and industrial fruits refer to those which are produced by lands. Exceptions: a. Possession in good faith by another in which case, the possessor in good faith is entitled to the fruits received before the possession is legally interrupted b. Usufruct in which case the usufructuary is entitled to all the fruits of the property on usufruct c. Lease of rural lands in which case the lessee is likewise entitled to the fruits of the land with the owner, getting civil fruits in the form of rents paid by the lessee d. Pledge in which case the pledge is entitled to receive the fruits, income, dividends, or interests which the pledge earns or produces but with the obligation to compensate or set-off what he receives with those which are owing him e. Antichresis in which case the creditor acquires the right to receive the fruits of any immovable of his debtor but with the obligation apply them first to the interest if owing, and then to the principal amount of the credit
Kinds of fruits 1. Natural fruits – self-generated and no human labor is exerted in their production
a. Spontaneous products of the soil; not through human cultivation or labor b. The young and other products of animals o The second kind is considered the natural fruits whatever care or management may be given by man since the law makes no distinction o Under the rule of partus sequitur ventrem (the offspring follow the condition of the mother), to the owner of female animals would also belong the young of such animals although this right is lost when the owner mixes his cattle with those off another. This rule only continues the ownership which the owner of the female had while the young is still in the womb of the mother 2. Industrial fruits – those produced by lands of any kind through cultivation or labor 3. Civil fruits – refers to rents of buildings, lands or other property, perpetual or life annuities or other similar income. Annuities refer to payments paid annually, monthly, or periodically computed upon the basis of the amount to be paid yearly, but not necessarily for life because it may be just for a number of years and ceases after the lapse of the period regardless whether the annultant survives Obligation of recipient of fruits to reimburse necessary expenses of third person Application: where the owner of the property recovers the same from a possessor and the possessor has not yet received the fruits although they may have already been gathered or harvested; or the possessor has already received the fruits but is ordered to return the same to the owner. The owner is obliged to reimburse the previous possessor for the expenses incurred by the latter for their production, gathering and preservation Reason: the expenses incurred by another inured to the benefit of the owner who receives the fruits for without such expenses there would have been no fruits. Based on the principle that no one may unjustly enrich himself at the expense of another Effect of bad faith: the owner cannot excuse himself from his obligation by alleging bad faith on the part of the possessor because Art 443 makes no such distinction and because the expenses made were necessary without which the owner would not have received the fruits
Where the expenses exceed the fruits – only expenses incurred by the possessor for the production, gathering and preservation are reimbursable o Even when such expenses exceed the value of the fruits He who is entitled to the benefits and advantages must assume o the risks and losses
When natural fruits and industrial fruits deemed to exist Natural and industrial fruits while still pending or ungathered are real property
Accession continua with respect to immovables 1. Accession follows the principal – the owner of the latter acquires the ownership of the former. With respect to immovables, the land is usually the principal; with respect to land involving movables, the law provides rules for determining which is the principal 2. Incorporation or union must be intimate – it must be that such removal or separation cannot be effected without substantial injury to either or both 3. Effect of good faith and bad faith – good faith exonerates a person from punitive liability but bad faith may give rise to dire consequences. A person who acted in bad faith has no rights and may also be held liable for damages. A person who acted in good faith is entitled to the necessary expenses of preservation as well as expenses for cultivation, gathering, and preservation 4. Effect where both parties in bad faith – the bad faith of one neutralizes the bad faith of the other. Where the parties are equally in bad faith, they shall both be considered in good faith 5. Principle against unjust enrichment – no one should unjustly enrich himself at the expense of another. Thus, the right of the owner of land to acquire what is built, planted or sown with the materials of another is subject to the obligation to pay their value. If the materials belong to a third person, the owner shall be subsidiarily liable for their value unless he exercises his right of removal. The builder, planter or sower, although in bad faith, is entitled to reimbursement for the necessary expenses of preservation of the land General rule on accession industrial General rule: the accessory follows the principal
Exception: Art 120 Family Code with respect to improvements made on the separate property of the spouses For Art 445 to be applicable, the owner must be known
Where builder of the land and materials are the same person On industrial accession, such accession is limited either to buildings erected on the land of another or buildings constructed by the owner of the land with materials owned by someone else Arts 445 and 447 treat accession produced by the landowner’s building, planting and sowing with the materials of another and when the materials, plants or seeds belong to a third person other than the landowner or the builder, planter or sower
Presumptions as to improvements Two disputable presumptions: 1. The works etc were made by the owner – based on positive law (Arts 437 and 445). A land naturally has an owner and the law accordingly presumes that he made the works, sowing or planting 2. They were made at the owner’s expense – what is built, planted or sown is done at the expense of the owner although the one who did so was a third person. The third person may only be acting as an agent of the owner NOTE: he who alleges the contrary of the presumptions established has the burden of proof Rights where land and materials belong to different owners It is presumed that all works, sowing and planting have been made by the owner and at his expense but the presumption is prima facie, it may be overcome by proof to the contrary Art 447 presupposes that the owner of the materials is in good faith. Good faith is always presumed and he is deemed a possessor in good faith if he is not aware that there exists in his title or mode of acquisition any flaw which invalidates it Art 447 does not apply when a possessor builds on the property of another 1. Rights and liabilities of the owner of land who used materials of another: a. If he acted in good faith, he becomes the owner of the materials (accessory) but he shall pay their value. The owner can laso
remove them if the removal can be done without injury to the plantings etc. b. If he acted in bad faith, he becomes the owner of the materials but he shall be obliged to: Pay their value and Pay damages o No option to return the materials instead of reimbursing their value. But the materials have not been damaged or transformed and can be returned in their original condition, the landowner may do so at his expense, even without the consent of the owner of the materials 2. Rights and liabilities of the owner of materials who acted in good faith: a. If the landowner acted in good faith, the owner of the materials is entitled To reimbursement for the value of the materials OR To removal of the materials if the same can be done without injury to the plantings etc. good faith on the part of the landowner is immaterial for he cannot be allowed to unjustly enrich himself at the expense of the owner of the materials b. If the landowner acted in bad faith, the owner of the materials is entitled To indemnification for damages To absolute right of removal whether or not injury would be caused o Rights and liabilities of owner of materials who acted in good faith – applies when both the landowner and owner of the materials are in good faith and when the owner of the materials is in bad faith but the land owner is in good faith. a. When the landowner is in good faith and the owner of the materials is in bad faith, the latter would be liable for any consequential damages without right of removal whether or not injury would be caused b. Where both parties are in bad faith, they shall both be treated as being in good faith
Builder, planter or sower in good faith When the person who builds in good faith on the land of another, the applicable provision is Art 448
When the person in bad faith builds on the land of another, the applicable provisions are Arts 449 and 450 Good faith consists in the honest belief of the builder, sower or planter that the land he is building, sowing or planting on, is his or that by some title he has a right to build thereon and his ignorance of any defect or flaw in his title o It implies an honesty of intention and freedom from knowledge of circumstances which ought to put the builder upon inquiry o The rule on good faith in Art 526 is applied: 1. Ownership of land is claimed by two or more parties – when the land whose ownership is claimed by two or more parties, one of whom has built some works or planted something. It does not apply when the owner of the land is the builder but later loses his ownership of the land by sale or donation 2. Requirement of good faith – applies where the builder, planter or sower acted in good faith, i.e., he honestly believed himself to have a claim of title or he proceeded with the knowledge, tolerance, consent or permission of the owner. He is not in good faith when there is a presumptive knowledge of the Torrens title issued to the registered owner of the land in dispute 3. Presumption of good faith – good faith is presumed; he who alleges bad faith on the part of the builder has the burden of proof 4. Presence of negligence – the good faith of the builder does not necessarily preclude negligence which gives right to damages. 5. Application to both public and private lands – the provision does not make any distinction between private land and public dominion.
Option given to landowner 1. Option alternative – the landowner can exercise a remedy to his own liking, either: a. To appropriate the improvement upon payment of the required indemnity b. To oblige the builder or planter to pay the price of the land, and the sower to pay the proper rent
2. Communication of choice – the choice of the owner shall produced effect from the time it has been communicated to the other party. Once properly made, it cannot be changed without consent from the other party 3. Good faith of builder is immaterial – it is immaterial that the builder acted in good faith because the option given by law to retain the premises and pay for the improvements or to sell the said premises to the builder belongs to the owner of the property Reason for option Whatever is built, planted or sown on the land of another, the improvements or repairs made thereon belong to the owner of the land Where the builder acted in good faith, a conflict of rights arises between the owners and it becomes necessary to protect the owner of the improvements without causing injustice to the landowner It is the landowner who is given the option because his right is older and because by principle of accession, he is entitled to the ownership of the accessory thing
Builder, planter or sower in bad faith 1.
