Aguirre v Pheng September 3, 1966 Barrera, J.

Facts: - June 28, 1954: Vicente and Teresa Aldaba sold to Jesus Aguirre a steel tank with a capacity of 5,000 gallons for P900 (He paid using a cheque of Security Bank and Trust Company). - Aguirre failed to take possession of the tank. He was prevented by the municipal authorities of Los Banos because the Bureau of Public Highways is also claiming ownership over it. - It appears the spouses Aldaba sold it to Zosimo Gabriel. Gabriel then sold it to Leonora and Company. Leonora then sold it to National Shipyard and Steel Corp (NASSCO). - Aguirre filed a case in the CFI [CC case no. 24914] Leonora also filed against NASSCO because the latter hasnt paid yet [CC case no. 27988]. Court jointly heard the cases. - CFI ruled in favor of Aguirre as absolute owner of the tank. The other sales were declared null and void. If not returned, they will pay Aguirre, P900 [CC 24914]. In CC 27988, Aguirre was declared the owner but NASSCO will pay Leonora P11,299. When Aguirre saw this, he appealed even though he won. - CA affirmed the CFI ruling. - Aguirre now appeals to the SC. Issue: WON, under Art 440 of the CC, his ownership of the property entitles him to everything that is produced or attached thereto either naturally or artificially. Held: Petition DISMISSED. - It is clear that we have here a case of accession by specification: Leonora and Company, as purchaser acting in good faith, spending P11,299.00 for the reconditioning of the tank which is later adjudged to belong to petitioner Aguirre. - There is no showing that without the works made by Leonora & Company, the tank in its original condition when Aguirre paid P900.00 therefor, would command the price of P14,500 which NASSCO was willing to pay. - Although ordinarily, therefore, Aguirre, as owner of the tank, would be entitled to any accession thereto, the rule is different where the works or improvements or the accession was made on the property by one who acted in good faith.2 o And, it is not contended that the making of the improvements and incurring of expenses amounting to P11,299.00 by Leonora & Company was done in bad faith. Furthermore, to uphold petitioner's contention that he is entitled to the sum of P14,500.00 the price of the tank in its present condition, would be to allow him to enrich himself at the expense of another. - It must also be remembered that the judgment in Civil Case No. 24914 of the Court of First Instance of Manila, wherein Nassco was directed to pay to Aguirre the of P900.00, in case delivery of the same tank is no longer possible, has already become final.