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

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MATRIX OF ACCESSION INDUSTRIAL: 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. BUILDER,PLANTER, SOWER OWNER OF MATERIALS (OM) (BPS) RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS 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 - in a. Becomes the a. Must pay not only a. Right to Bad Faith owner of the the value of the reimbursement (BF); OM materials material but also of the value of - in GF (right of obliged to the materials plus appropriation reparation of damages, in of the damages in case case he chooses materials); OM chose not to not to remove the Except: remove the materials LANDOWNER (LO)

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LANDOWNER (LO)

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

BUILDER,PLANTER, SOWER (BPS) RIGHTS OBLIGATIONS

OWNER OF MATERIALS (OM)

RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS When the OM materials. b. Entitled to decides to absolute right of remove the removal of the materials materials whether whether or not or not substantial destruction injury is caused; would be plus 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: when b. Limited right of 3  

 

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

OBLIGATIONS

BUILDER,PLANTER, SOWER (BPS) RIGHTS OBLIGATIONS

OWNER OF MATERIALS (OM) RIGHTS removal, ie. May remove the materials provided it will not cause injury to the work constructed, or without the plantings, construction or works being destroyed.

OBLIGATIONS

B. 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 thing until he has been reimbursed therefor. b. 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. Note: Indemnities to be given: a. 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 b. Useful expenses – are those that augment the income of the thing upon which they are spent or add value to the property 4    

BUILDER,PLANTER, SOWER OWNER OF MATERIALS (OM) (BPS) RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS c. 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 right of removal or demolition, unless after having selected a compulsory sale, the builder fails to pay for the land LANDOWNER (LO)

Note:

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; Land Owner has BPS - in two (2) options: GF; a. To a. Has to pay This rule appropriate indemnity if also applies as his own chooses to if both the the works, appropriate as own LO and sowing or the works, sowing BPS is in planting after or planting made Bad Faith payment of on his land (Art. 453) indemnity; OR b. Oblige the builder or planter to pay the value of

a. Right to reimburseme nt of necessary and useful expenses incurred for the preservation of the property b. Right of Retention of

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 5  

 

LANDOWNER (LO) RIGHTS the land; or the 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 OBLIGATIONS ownership of parties, in whatever is case of built, planted disagreement or sown on , the court the land, until shall fix the payment of terms.) indemnity by the LO (if LO chooses to b. Must pay for appropriate) the value of c. May remove the land if he the accepts the ornaments offer of the with which he LO to sell the has land; embellished If BP fails to the principal pay the thing if it agreed price, suffers no he will lose injury his right of thereby, and retention and if his LO shall be successor in entitled to the removal of possession improvement does not (Art. 450). prefer to refund the amount expended.

OWNER OF MATERIALS (OM) RIGHTS

OBLIGATIONS

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BUILDER,PLANTER, SOWER OWNER OF MATERIALS (OM) (BPS) RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS d. Cannot be obliged to buy the land if the value of the land is considerably 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. LANDOWNER (LO)

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. Article 452.

In the cases of the two preceding articles, the landowner is entitled to damages from the builder, planter, or sower. 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 appropriation, i.e. he

a. Pay for the necessary and useful expenses

a. Loses whatever is built, planted

a. Pay for the expenses incurred in 7  

 

BUILDER,PLANTER, SOWER (BPS) OBLIGATIONS RIGHTS OBLIGATIONS for the preservation or sown on case the land of the land incurred the land of owner chose by the BPS in bad another to demolish faith (Art. 452) without right or remove to indemnity whatever is (Art. 449) built or b.He is entitled planted/sown to on his land in reimbursemen order to t for the replace necessary and things their useful former expenses for conditions the (Art 450) preservation b. If the LO of the land compels the (Art. 452) 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

LANDOWNER (LO) RIGHTS becomes the owner of whatever is built, planted 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

OWNER OF MATERIALS (OM) RIGHTS

OBLIGATIONS

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LANDOWNER (LO)

BUILDER,PLANTER, SOWER (BPS) RIGHTS OBLIGATIONS (Art. 450) c. In all of the above circumstance s, the BPS shall be liable for damages.

OWNER OF MATERIALS (OM)

RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS of the land whether or not it is 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 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; a. Becomes the b. Must pay not only a. Right to BPS - in GF owner of the the value of what reimbursem 9    

BUILDER,PLANTER, SOWER OWNER OF MATERIALS (OM) (BPS) RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS improvements is built, planted ent of the (right of or sown but also value of the appropriation obliged to the building or of whatever is reparation of trees or built, planted damages in case plants plus or sown); BPS chose not to damages, in Except: remove the case he When the buildings or chooses not BPS decides trees/plants. to remove the to remove the materials improvements b. Entitled to whether or not absolute destruction right of would be removal of caused. In the this case, the improvement improvements s whether or would still not belong to the substantial BPS who in injury is addition will caused; plus still be entitled damages; to damages (ownership of improvement s still retains to him) C. 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 LANDOWNER (LO)

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BUILDER,PLANTER, SOWER OWNER OF MATERIALS (OM) (BPS) RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS 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. LANDOWNER (LO)

(1) LO -in GF BPS - in GF OM - in GF

(2) LO - in GF

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)

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)

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 11  

 

LANDOWNER (LO) RIGHTS BPS - in BF OM - in BF

OBLIGATIONS

a. Right of a. Pay for the appropriation, necessary and i.e. he useful expenses for becomes the the preservation of owner of the land incurred whatever is by the BPS in bad built, planted faith (Art. 452) 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);

BUILDER,PLANTER, SOWER (BPS) RIGHTS OBLIGATIONS must govern. Hence: a. Becomes the a. Must owner of the reimburse materials, if OM for the he pays for value of the their value; materials if Exception: OM chose When they can not remove be removed the materials; without b. In case BPS destruction to cannot pay, the work made LO will not or to the plants. be In which case, subsidiarily the OM may liable remove them. because to him, BPS is in bad faith c. In case BPS pays for the value of the materials to OM, BPS cannot ask reimburseme nt from the LO, because as to the latter BPS is

OWNER OF MATERIALS (OM) RIGHTS

OBLIGATIONS

a. Right to reimbursement of the value of materials, in case he chooses not to remove 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 12  

 

LANDOWNER (LO)

(3) LO -in GF BPS - in GF OM - in BF

RIGHTS OBLIGATIONS OR c. May compel the BP to pay for the value of the land whether or not it is 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 in bad faith.

OWNER OF MATERIALS (OM) RIGHTS without the plantings, construction or works being destroyed.

OBLIGATIONS

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

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 13    

LANDOWNER (LO)

BUILDER,PLANTER, SOWER (BPS) RIGHTS OBLIGATIONS

OWNER OF MATERIALS (OM)

RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS 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 quasi-delict.

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