Matrix Accession Industrial Arts 445-456

Section 2 – Right of Accession with Respect to Immovable Property – Accession Continua ACCESSION INDUSTRIAL = happens by : (governed by Articles 445 – 456 of the Civil Code) a. Building b. Planting c. Sowing Good Faith – With reference to the landowner (LO) or owner of materials (OM): = he is deemed possessor in good faith who is not aware that there exists in his title or mode of acquisition any flaw which invalidates it. (Article 526 par 1, by analogy); = he is in good faith if he did not know that he had no right to such land or materials. = the owner of the land or materials is in good faith if he did not know that another was using his land or his materials; or granting that he did know, if he informed the user of the ownership thereof and made necessary prohibition; Good Faith - with reference to the builder, planter, or sower (BPS): = BPS is in good faith if did not know that he had no right to such land or materials; Good faith is always presumed, under Article 527, and he who alleges bad faith has the burden of proving such bad faith. Bad Faith – with reference to the landowner or owner of materials: = it is understood that there is bad faith on the part of the landowner whenever that act was done with his knowledge and without opposition (Art 453, par 2); = the landowner or owner of the materials would be in bad faith if such land or materials were used by another in his presence or with his knowledge and forbearance and without the opposition in his part; = or the LO or OM is in bad faith if he allows another to use the land or materials, as the case may be, without informing him of the ownership thereof; Bad Faith – with reference to the builder, planter or sower (BPS): = the BPS is in bad faith if he makes use of the land which he knows belong to another; = the BPS is in bad faith if he knew that he had no right to make use of such materials

MATRIX OF ACCESSION INDUSTRIAL: 1

Articles 445 – 456 of the Civil Code Legend: LO = Landowner BPS = Builder, Planter, or Sower OM = Owner of Materials (1)Presumption of ownership of accessory: Article 445:Whatever is built, planted or sown on the land of another and the improvements or repairs made thereon, belong to the owner of the land, subject to the provisions of the following articles. (2)Presumptions that works, sowing planting were made by the landowner and at his expense Article 446:All works, sowing, and planting are presumed made by the owner and at his expense, unless the contrary is proved. LANDOWNER (LO) RIGHTS

OBLIGATIONS

BUILDER,PLANTER, SOWER (BPS) RIGHTS

OBLIGATIONS

OWNER OF MATERIALS (OM) RIGHTS

OBLIGATION S

A. Rules when landowner constructs or plants on his land with materials of another: Article 447 Article 447. The owner of the land who makes thereon, personally or through another, plantings, constructions or works with the materials of another, shall pay their value; and if he acted in bad faith, he shall also be obliged to the reparation of damages. The owner of the materials shall have the right to remove them only in case he can do so without injury to the work constructed, or without the plantings, constructions or works being destroyed. However, if the landowner acted in bad faith, the owner of the materials may remove them in any event, with a right to be indemnified for damages. Note: Indemnification for damages shall comprehend not only the value of the loss suffered but also that of the profits which the oblige failed to realized; (1)LO/BPS a. Becomes the a. Must pay not a. Right to = in Bad owner of the only the value reimbursement Faith (BF); materials of the material of the value of OM = in (right of but also obliged materials plus GF appropriation to the damages, in of the reparation of case he chooses materials); damages in case not to remove Except: OM chose not to the materials When the OM remove the b. Entitled to decides to materials. absolute right 2

LANDOWNER (LO) RIGHTS

(2)LO/BPS = in BF OM = in BF

OBLIGATIONS

BUILDER,PLANTER, SOWER (BPS) RIGHTS

OBLIGATIONS

OWNER OF MATERIALS (OM) RIGHTS

OBLIGATION S

remove the of removal of materials the materials whether or whether or not not substantial injury destruction is caused; plus would be damages; caused. In (ownership of this case, the materials still materials retains to him) would still belong to the owner of said materials who in addition will still be entitled to damages By analogy: Art. 453, par. 1: If there was bad faith, not only on the part of the person who built, planted or sowed on the land of another, but also on the part of the owner of such land, the right of one and the other shall be the same as though both had acted in good faith. In such a case, the following rules shall apply: a. Becomes the a. Must pay for the a. Shall be paid for owner of the value of the the value of the materials materials materials (right of (right of reimbursement) if appropriation he chose not to of the remove the materials); materials Except: b. Limited right of when they removal, ie. can be May remove the 3

LANDOWNER (LO) RIGHTS removed without destruction to the work made or to the plants. In such a case, OM can remove them. B.

OBLIGATIONS

BUILDER,PLANTER, SOWER (BPS) RIGHTS

OBLIGATIONS

OWNER OF MATERIALS (OM) RIGHTS

OBLIGATION S

materials provided it will not cause injury to the work constructed, or without the plantings, construction or works being destroyed.

Rules when BPS (builder, planter or sower) builds, plants or sows on the land of another

Article 448. The owner of the land on which anything has been built, sown or planted in good faith, shall have the right to appropriate as his own the works, sowing or planting, after payment of indemnity provided for in Articles 546 and 548, or to oblige the one who built or planted to pay the price of the land, and the one who sowed, the proper rent. However, the builder or planter cannot be oblige to buy the land if its value is considerably more than that of the building or trees. In such case, he shall pay reasonable rent, if the owner of the land does not choose to appropriate the building or trees after proper indemnity. The parties shall agree upon the terms of the lease and in case of disagreement, the court shall fix the terms thereof. a. Article 546: Necessary expenses shall be refunded to every possessor, but only the possessor in good faith may retain the b. Note:

Indemnities to be given: a. b.

Note:

thing until he has been reimbursed therefor. Article 548: Expenses for pure luxury or mere pleasure shall not be refunded to the possessor in good faith; but he may remove the ornaments with which he has embellished the principal thing if it suffers no injury thereby, and if his successor in the possession does not prefer to refund the amount expended.

c.

Necessary expenses – are those made for the preservation of the thing or those without which the thing would deteriorate or be lost such as those incurred for cultivation, production, and upkeep. Ordinary repairs are those required by the wear and tear due to the natural use of the thing, and are indispensable for its preservation Useful expenses – are those that augment the income of the thing upon which they are spent or add value to the property Luxurious expenses – are those unnecessary expenses such as ornaments embellished upon the property.

Since the choice given the LO is confined to either the appropriation or compulsory selling, he has no 4

LANDOWNER (LO) RIGHTS

OBLIGATIONS

BUILDER,PLANTER, SOWER (BPS) RIGHTS

OBLIGATIONS

OWNER OF MATERIALS (OM) RIGHTS

OBLIGATION S

right of removal or demolition, unless after having selected a compulsory sale, the builder fails to pay for the land Remedies if option exercised was compulsory selling and builder fails to pay: a. Leave things as they are and assume relation of lessor and lessee; pay rents; or b. Demolish what has been built, sown or planted; or

c. Consider price of land as an ordinary money debt of the builder. Therefore, he may enforce payment thru and ordinary action for the recovery of a money debt (levy and execution)

(1)LO = in GF; BPS = in GF; This rule also applies if both the LO and BPS is in Bad Faith (Art. 453)

Land Owner has two (2) options: a. To appropriate as his own the works, sowing or planting after payment of indemnity; OR b. Oblige the builder or planter to pay the value of the land; or the

a. Has to pay indemnity if chooses to appropriate as own the works, sowing or planting made on his land

a. Right to reimbursem ent of necessary and useful expenses incurred for the preservation of the property b. Right of Retention of ownership of whatever is built,

a.To pay proper rent in case the LO chooses to appropriate whatever is built, planted or sown on his land. (The terms of lease shall be agreed upon by the parties, in case of 5

LANDOWNER (LO) RIGHTS sower, the proper rent (in case LO chose not to appropriate) However: Cannot oblige the builder or planter to buy the land if the value of the land is considerably more than the value of the building or trees; Otherwise, proper rent must be paid; (The terms of lease shall be agreed upon by the parties, in case of disagreement, the court shall fix the terms.)

OBLIGATIONS

BUILDER,PLANTER, SOWER (BPS) RIGHTS planted or sown on the land, until payment of indemnity by the LO (if LO chooses to appropriate) c. May remove the ornaments with which he has embellished the principal thing if it suffers no injury thereby, and if his successor in the possession does not prefer to refund the amount expended. d. Cannot be obliged to buy the land

OBLIGATIONS

OWNER OF MATERIALS (OM) RIGHTS

OBLIGATION S

disagreemen t, the court shall fix the terms.) b. Must pay for the value of the land if he accepts the offer of the LO to sell the land; If BP fails to pay the agreed price, he will lose his right of retention and LO shall be entitled to removal of improvemen t (Art. 450).

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LANDOWNER (LO) RIGHTS

OBLIGATIONS

BUILDER,PLANTER, SOWER (BPS) RIGHTS

OBLIGATIONS

OWNER OF MATERIALS (OM) RIGHTS

OBLIGATION S

if the value of the land is considerabl y more than the value of the building or trees. Article 449. He who builds, plants or sows in bad faith on the land of another, loses what is built, planted or sown without right of indemnity. Article 450. The owner of the land on which anything has been built, planted or sown in bad faith may demand the demolition of the works, or that the planting or sowing be removed, in order to replace things in their former condition at the expense of the person who built, planted or sowed; or he may compel the builder or planter to pay the price of the land, and the sower the proper rent. Article 451. In the cases of the two preceding articles, the landowner is entitled to damages from the builder, planter, or sower. Article 452. The builder, planter or sower in bad faith is entitled to reimbursement for the necessary expenses for the preservation of the land.

(2)LO = in GF; BPS = in BF

a. Right of appropriatio n, i.e. he becomes the owner of whatever is built, planted

a. Pay for the necessary and useful expenses for the preservation of the land incurred by the BPS in bad

a. Loses whatever is built, planted or sown on the land of another

a. Pay for the expenses incurred in case the land owner chose to demolish or 7

LANDOWNER (LO) RIGHTS or sown on his land, without paying indemnity for its value (Art 449) b. May demand the demolition of the work, or that the planting or sowing be removed in order to replace things in their former condition at the expense of the BPS (Art. 450) c. May compel the BP to pay for the value of the land whether or not it is considerably more than the value of

OBLIGATIONS faith (Art. 452)

BUILDER,PLANTER, SOWER (BPS) RIGHTS

OBLIGATIONS

without right to indemnity (Art. 449) b. He is entitled to reimburseme nt for the necessary and useful expenses for the preservation of the land (Art. 452)

remove whatever is built or planted/sow n on his land in order to replace things their former conditions (Art 450) b. If the LO compels the BPS to buy the land, the latter must pay for the value of the land whether or not the it is more than the value of the building or trees; the sower must pay for the proper rent (Art. 450) c. In all of the above circumstanc es, the BPS

OWNER OF MATERIALS (OM) RIGHTS

OBLIGATION S

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LANDOWNER (LO) RIGHTS

OBLIGATIONS

BUILDER,PLANTER, SOWER (BPS) RIGHTS

OBLIGATIONS

OWNER OF MATERIALS (OM) RIGHTS

OBLIGATION S

the building shall be or trees; liable for and sower damages. proper rent. (Art. 450) d. In all of the above circumstance s, the LO shall be entitled to damages from the BPS(Art 451) Article 454. When the land owner acted in bad faith and the builder, planter or sower proceeded in good faith, the provisions of Article 447 shall apply. a. Article 447. The owner of the land who makes thereon, personally or through another, plantings, constructions or works with the materials of another, shall pay their value; and if he acted in bad faith, he shall also be obliged to the reparation of damages. The owner of the materials shall have the right to remove them only in case he can do so without injury to the work constructed, or without the plantings, constructions or works being destroyed. However, if the landowner acted in bad faith, the owner of the materials may remove them in any event, with a right to be indemnified for damages.

(3)LO = in BF; BPS = in GF

a. Becomes the owner of the improvement s (right of appropriation of whatever is built, planted or sown); Except: When the

b. Must pay not only the value of what is built, planted or sown but also obliged to the reparation of damages in case BPS chose not to remove the

a. Right to reimburse ment of the value of the building or trees or plants plus damages, in case he chooses not 9

BUILDER,PLANTER, SOWER (BPS)

LANDOWNER (LO) RIGHTS BPS decides to remove the improvement s whether or not destruction would be caused. In this case, the improvement s would still belong to the BPS who in addition will still be entitled to damages

C.

OBLIGATIONS buildings trees/plants.

RIGHTS or

OBLIGATIONS

OWNER OF MATERIALS (OM) RIGHTS

OBLIGATION S

to remove the materials b. Entitled to absolute right of removal of the improvemen ts whether or not substantial injury is caused; plus damages; (ownership of improvemen ts still retains to him)

Rules when BPS (builder, planter or sower) builds, plants or sows on the land of another using the materials of a third person

Article 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 for 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 if the owner makes use of the right granted by Art. 450. If the owner of the materials, plants or seeds has been paid by the builder , the later may demand from the landowner the value of the materials and labor. 10

LANDOWNER (LO) RIGHTS (1)LO =in GF BPS = in GF OM = in GF

(2)LO = in GF BPS = in BF OM = in BF

OBLIGATIONS

Apply the Rules in Art. 448, item 1 of this Matrix Additional Rights and Obligation of the LO: 1. Subsidiarily liable for the value of the materials to OM in the event that the BPS is insolvent. 2. The landowner can only make use of the materials if he appropriates the construction; (LO subsidiarily liable) 3. If he compels the BPS to purchase the land; or to demolish the construction, the landowner does not make use of the materials, thus he cannot be made subsidiarily liable to the OM for the value thereof; 4. If the BPS pays the OM, BPS may demand from landowner the value of the materials and labor (provided LO did not appropriate the materials because he did not profit from the accession) a. Right of appropriation , i.e. he becomes the owner of whatever is

a. Pay for the necessary and useful expenses for the preservation of the land incurred

BUILDER,PLANTER, SOWER (BPS) RIGHTS

OBLIGATIONS

Apply the Rules in Art. 448, item 1 of this Matrix Additional Rights and Obligation of the BPS: 1. Principally liable to the OM; since he was the first to use the materials; 2. If BPS is insolvent, LO shall be subsidiarily liable, provided the latter chose to use the materials; 3. If the BPS pays the OM, BPS may demand from landowner the value of the materials and labor (provided LO did not appropriate the materials because he did not profit from the accession)

OWNER OF MATERIALS (OM) RIGHTS

OBLIGATION S

a. Entitled to reimbursement from the BPS, principally; or b. Can go after the LO if the BPS is insolvent and LO uses the materials

Note: As between BPS and OM since they are both in bad faith, good faith must govern. Hence: a. Becomes a.Must a. Right to the owner of reimburse reimbursemen the OM for the t of the value of materials, if value of the materials, in he pays for materials if case he chooses their value; OM chose not to remove 11

LANDOWNER (LO)

BUILDER,PLANTER, SOWER (BPS)

RIGHTS

OBLIGATIONS

RIGHTS

OBLIGATIONS

built, planted or sown on his land, without paying indemnity for its value (Art 449); OR b. May demand the demolition of the work, or that the planting or sowing be removed in order to replace things in their former condition at the expense of the BPS (Art. 450); OR c. May compel the BP to pay for the value of the land whether or not it is

by the BPS in bad faith (Art. 452)

Exception: When they can be removed without destruction to the work made or to the plants. In which case, the OM may remove them.

not remove the materials; b.In case BPS cannot pay, LO will not be subsidiarily liable because to him, BPS is in bad faith c. In case BPS pays for the value of the materials to OM, BPS cannot ask reimbursem ent from the LO, because as to the latter BPS is in bad faith.

OWNER OF MATERIALS (OM) RIGHTS

OBLIGATION S

the materials; (can only demand reimbursement from BPS of which he is primarily liable) In case BPS cannot pay, LO will not be subsidiarily liable to OM because as to the LO, BPS is in bad faith b. Limited right of removal, i.e. May remove the materials provided it will not cause injury to the work constructed, or without the plantings, construction or works being destroyed.

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LANDOWNER (LO) RIGHTS

(4)LO =in GF BPS = in GF OM = in BF

OBLIGATIONS

considerably more than the value of the building or trees; and sower proper rent. (Art. 450) d. In all of the above circumstance s the LO can demand damages from both the BPS and OM Apply the Rules in Art. 448, item 1 of this Matrix

BUILDER,PLANTER, SOWER (BPS) RIGHTS

OBLIGATIONS

Apply the Rules in Art. 448, item 1 of this Matrix

OWNER OF MATERIALS (OM) RIGHTS

OBLIGATION S

If he acted in bad faith, OM shall lose all rights to be indemnified; Moreover, he can even be liable for damages as when the materials are of an inferior quality.

Article 456. In the cases regulated in the preceding articles, good faith does not necessarily exclude negligence, which gives right to damages under article 2176. Article 2176. Whoever by acts or omission causes damage to another, there being fault or negligence, is obliged to pay for the damage done. Such fault or negligence, if there is no pre-existing contractual relations between the parties, is called quasidelict.

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