# 35. MANOTOK REALTY, INC. vs.

TECSON
G.R. No. L-47475 August 19, 1988
GUTIERREZ, JR., J.

Doctrine: Where the improvements have been destroyed by a
fortuitous event without the fault of the landowner, the basis for the
builders right to retain the premises is extinguished; hence there is no
other recourse for him but to vacate the premises and deliver the
same to the landowner.

Facts: Petitoner Manotok Realty (company for brevity) filed a
complaint against private respondent Madlangawa for recovery of
possession. The court ruled against the company, declaring
Madlangawa as a builder or possessor in good faith and ordering the
company to recognize the right of Madlangawa to remain in companys
lot until after he shall have been reimbursed by the company. Decision
became final and executory.

The petitioner company then filed a motion for the approval of the
companys exercise of option and for satisfaction of judgment, praying
that the court issue an order: a) approving the exercise of the
companys option to appropriate the improvements introduced by
Madlangawa on the property; b) thereafter, Madlangawa be ordered to
deliver possession of the property in question to the company. Public
respondent Judge Tecson, denied it as well as its motion for
reconsideration. Hence, this petition for mandamus.

The petitioner company argues that since the judgment of the trial
court has already become final, it is entitled to the execution of the
same and that moreover, since the house of the private respondent
was gutted by fire, the execution of the decision would now involve the
delivery of possession of the disputed area by the private respondent
to the petitioner.

Issue: WON the destruction of improvement of a builder in good faith
extinguishes his right to retain the premises until reimbursed.

Held: Yes. Since the improvements have been gutted by fire, and
therefore, the basis for private respondent's right to retain the
premises has already been extinguished without the fault of the
petitioner, there is no other recourse for the private respondent but to
vacate the premises and deliver the same to herein petitioner.