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FRANCISCODEPRA,plaintiffappellee,vs.AGUSTINDUMLAO,
defendantappellant.
Leases Ejectment The judgment of a Municipal Court in ejectment
casesiseffectiveinrespectofpossessiononly.Ithasnoauthoritytoimpose
a forced lease.Addressing ourselves to the issue of validity of the
DecisionoftheMunicipalCourt,weholdthesametobenullandvoid.The
judgmentinadetainercaseiseffectiveinrespectofpossessiononly(Sec.7,
Rule70,RulesofCourt).TheMunicipalCourtoversteppeditsboundswhen
itimposeduponthepartiesasituationofforcedlease,whichlikeforced
coownership is not favored in law, Furthermore, a lease is an interest in
real property, jurisdiction over which belongs to Courts of First Instance
(nowRegionalTrialCourts)(Sec.44(b),JudiciaryActof1948Sec.19(2)
Batas Pambansa Blg. 129). Since the Municipal Court, acted without
jurisdiction, its Decision was null and void and cannot operate as res
judicatatothesubjectcomplaintforQuietingofTitle.
SameSameJudgmentsRes judicata does not apply where previous
caseisanejectmentcaseandsubsequentcaseisapetitionforquietingof
title.Besides, even if the Decision were valid, the rule on res judicata
would not apply due to difference in cause of action. In the Municipal
Court, the cause of action was the deprivation of possession, while in the
action to quiet title, the cause of action was based on ownership.
Furthermore.Sec.7,Rule70oftheRulesofCourtexplicitlyprovidesthat
judgment in a detainer case shall not bar an action between the same
partiesrespectingtitletotheland.
Same Property Owner of land on which improvement was built by
another in good faith is entitled to removal of improvement only after
landownerhasoptedtosellthelandandthebuilderrefusedtopayforthe
same.However,thegoodfaithofDUMLAOispartoftheStipulationof
FactsintheCourtofFirstInstance.ItwasthuserrorfortheTrialCourtto
have ruled that DEPRA is entitled to possession, without more, of the
disputed portion implying thereby that he is entitled to have the kitchen
removed.Heisentitledtosuchremovalonlywhen,afterhavingchosento
sellhisencroachedland,
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*FIRSTDIVISION.
476
476
SUPREMECOURTREPORTSANNOTATED
Depravs.Dumlao
DUMLAOfailstopayforthesame.Inthiscase,DUMLAOhadexpressed
hiswillingnesstopayfortheland,butDEPRArefusedtosell.
Same Same Where the lands value is considerably more than the
improvement,thelandownercannotcompelthebuildertobuytheland.In
such event, a forced lease is created and the court shall fix the terms
thereof in case the parties disagree thereon.The trial Court shall further
order that if DEPRA exercises the option to oblige DUMLAO to pay the
priceofthelandbutthelatterrejectssuchpurchasebecause,asfoundbythe
trial Court, the value of the land is considerably more than that of the
kitchen, DUMLAO shall give written notice of such rejection to DEPRA
andtotheCourtwithinfifteen(15)daysfromnoticeofDEPRAsoptionto
selltheland.Inthatevent,thepartiesshallbegivenaperiodoffifteen(15)
daysfromsuchnoticeofrejectionwithinwhichtoagreeuponthetermsof
thelease,andgivetheCourtformalwrittennoticeofsuchagreementandits
provisos. If no agreement is reached by the parties, the trial Court, within
fifteen(15)daysfromandaftertheterminationofthesaidperiodfixedfor
negotiation,shallthenfixthetermsofthelease,providedthatthemonthly
rentaltobefixedbytheCourtshallnotbelessthanTenPesos(P10.00)per
month, payable within the first five (5) days of each calendar month. The
period for the forced lease shall not be more than two (2) years, counted
fromthefinalityofthejudgment,consideringthelongperiodoftimesince
1952 that DUMLAO has occupied the subject area. The rental thus fixed
shall be increased by ten percent (10%) for the second year of the forced
lease.DUMLAOshallnotmakeanyfurtherconstructionsorimprovements
onthekitchen.Uponexpirationofthetwoyearperiod,orupondefaultby
DUMLAO in the payment of rentals for two (2) consecutive months,
DEPRAshallbeentitledtoterminatetheforcedlease,torecoverhisland,
and to have the kitchen removed by DUMLAO or at the latters expense.
TherentalshereinprovidedshallbetenderedbyDUMLAOtotheCourtfor
paymenttoDEPRA,andsuchtendershallconstituteevidenceofwhetheror
notcompliancewasmadewithintheperiodfixedbytheCourt.
APPEALfromtheorderoftheCourtofFirstInstanceofIloilo.
ThefactsarestatedintheopinionoftheCourt
RobertoD.Dinerosforplaintiffappellee.
NeilD.Hechanovafordefendantappellant.
477
VOL.136,MAY16,1985
477
Depravs.Dumlao
MELENCIOHERRERA,J.:
This is an appeal from the Order of the former Court of First
Instance of Iloilo to the then Court of Appeals, which the latter
certifiedtothisinstanceasinvolvingpurequestionsoflaw.
Plaintiffappellee, Francisco Depra, is the owner of a parcel of
land registered under Transfer Certificate of Title No. T3087,
known as Lot No. 685, situated in the municipality of Dumangas,
Iloilo, with an area of approximately 8,870 square meters. Agustin
Dumlao, defendantappellant, owns an adjoining lot, designated as
LotNo.683,withanapproximateareaof231sq.ms.
Sometimein1972,whenDUMLAOconstructedhishouseonhis
lot,thekitchenthereofhadencroachedonanareaofthirtyfour(34)
square meters of DEPRAs property, After the encroachment was
discovered in a relocation survey of DEPRAs lot made on
November2,1972,hismother,BeatrizDerla,afterwritingademand
letteraskingDUMLAOtomovebackfromhisencroachment,filed
an action for Unlawful Detainer on February 6, 1973 against
DUMLAO in the Municipal Court of of Dumangas, docketed as
Civil Case No. I. Said complaint was later amended to include
DEPRAasapartyplaintiff.
After trial, the Municipal Court found that DUMLAO was a
builder in good faith, and applying Article 448 of the Civil Code,
renderedjudgmentonSeptember29,1973,thedispositiveportionof
whichreads:
Ordering that a forced lease is created between the parties with the
plaintiffs,aslessors,andthedefendantsaslessees,overthedisputedportion
with an area of thirty four (34) square meters, the rent to be paid is five
(P5.00)pesosamonth,payablebythelesseetothelessorswithinthefirst
five(5)daysofthemonththerentisdueandtheleaseshallcommenceon
thedaythatthisdecisionshallhavebecomefinal.
478
SUPREMECOURTREPORTSANNOTATED
Depravs.Dumlao
theMunicipalCourt.
OnJuly15,1974,DEPRAfiledaComplaintforQuietingofTitle
againstDUMLAObeforethethenCourtofFirstInstanceofIloilo,
BranchIV(TrialCourt),involvingtheverysame34squaremeters,
which was the bone of contention in the Municipal Court,
DUMLAO, in his Answer, admitted the encroachment but alleged,
inthemain,thatthepresentsuitisbarredbyresjudicatabyvirtue
oftheDecisionoftheMunicipalCourt,whichhadbecomefinaland
executory.
After the case had been set for pretrial, the parties submitted a
JointMotionforJudgmentbasedontheStipulationofFactsattached
thereto. Premised thereon, the Trial Court on October 31, 1974,
issuedtheassailedOrder,decreeing:
WHEREFORE,theCourtfindsandsoholdsthatthethirtyfour(34)square
meterssubjectofthislitigationispartandparcelofLot685oftheCadastral
Survey of Dumangas of which the plaintiff is owner as evidenced by
TransferCertificateofTitleNo.3087andsuchplaintiffisentitledtopossess
thesame.
Withoutpronouncementastocosts.
SOORDERED.
ForcibleEntryandDetainer
Sec. 7. Judgment conclusive only on possession not conclusive in actions involving title or
ownership.Thejudgmentrenderedinanactionforforcibleentryordetainershallbeeffective
withrespecttothepossessiononlyandinnowisebindthetitleoraffecttheownershipofthe
landorbuilding.Suchjudgmentshallnot
479
VOL.136,MAY16,1985
479
Depravs.Dumlao
ownershipisnotfavoredinlaw.Furthermore,aleaseisaninterest
in real property, jurisdiction over which belongs to Courts of First
Instance
(now Regional Trial Courts) (Sec. 44(b),
Judiciary Act of
2
3
1948 Sec.19(2)BatasPambansaBlg.129). Since the Municipal
Court,actedwithoutjurisdiction,itsDecisionwasnullandvoidand
cannotoperateasresjudicata to the subject complaint for Queting
of Title. Besides, even if the Decision were valid, the rule on res
judicatawouldnotapplyduetodifferenceincauseofaction.Inthe
Municipal Court, the cause of action was the deprivation of
possession,whileintheactiontoquiettitle,thecauseofactionwas
based on ownership. Furthermore, Sec. 7, Rule 70 of the Rules of
Courtexplicitlyprovidesthatjudgmentinadetainercaseshallnot
4
baranactionbetweenthesamepartiesrespectingtitletotheland.
ConcededIntheStipulation of Facts between the parties is that
DUMLAOwasabuilderingoodfaith.Thus,
8.Thatthesubjectmatterintheunlawfuldetainercase,CivilCaseNo.1,
beforetheMunicipalCourtofDumangas,Iloiloinvolvesthesamesubject
matterinthepresentcase,theThirtyfour(34)
_______________
baranactionbetweenthesamepartiesrespectingtitletothelandorbuilding,norshallitbe
heldconclusiveofthefactsthereinfoundinacasebetweenthesamepartiesuponadifferent
causeofactionnotinvolvingpossession.
2Sec.44.Originaljurisdiction.xxx
(b) In all civil actions which involve the title to, or possession of real property, or any
interest therein, or the legality of any tax, impose or assessment, except actions of forcible
entryintoanddetaineronlandsorbuildings,originaljurisdictionofwhichisconferredbythis
Actuponcityandmunicipalcourts
3Sec.19.Jurisdictionincivilcase.xxx
(2) In all civil actions which involve the title to, or possession of, real property, or any
interest therein, except actions for forcible entry into and unlawful detainer of lands or
buildings, original jurisdiction over which is conferred upon Metropolitan Trial Courts,
MunicipalTrialCourts,andMunicipalCircuitTrialCourts
4Supra.
480
480
SUPREMECOURTREPORTSANNOTATED
Depravs.Dumlao
squaremetersportionoflandandbuiltthereoningoodfaithisaportionof
defendants kitchen and has been in the possession of the defendant since
1952continuouslyuptothepresentxxx.(Italicsours)
Pursuanttotheforegoingprovision,DEPRAhastheoptioneitherto
pay for the encroaching part of DUMLAOs kitchen, or to sell the
encroached 34 square meters of his lot to DUMLAO. He cannot
refusetopayfortheencroachingpartof
481
VOL.136,MAY16,1985
481
Depravs.Dumlao
5
thebuilding,andtoselltheencroachedpartofhisland, as he had
manifestedbeforetheMunicipalCourt.Butthatmanifestationisnot
bindingbecauseitwasmadeinavoidproceeding.
However,thegood faith of DUMLAOis part of the Stipulation
ofFactsintheCourtofFirstInstance.ItwasthuserrorfortheTrial
CourttohaveruledthatDEPRAisentitledtopossession,without
more,ofthedisputedportionimplyingtherebythatheisentitledto
havethekitchenremoved.Heisentitledtosuchremovalonlywhen,
afterhavingchosen6 to sell his encroached land, DUMLAO fails to
pay for the same. In this case, DUMLAO had expressed his
willingnesstopayfortheland,butDEPRArefusedtosell.
Theownerofthebuildingerectedingoodfaithonalandownedbyanother,
isentitledtoretainthepossessionofthelanduntilheispaidthevalueofhis
building,underarticle453(nowArticle546).Theowneroftheland,upon
theotherhand,hastheoption,underarticle361(nowArticle448),eitherto
payforthebuildingortosellhislandtotheownerofthebuilding.Buthe
cannot, as respondents here did refuse both to pay for the building and to
sell the land and compel the owner of the building to remove it from the
land where it erected. He is entitled to such remotion only when, after
having chosen to sell his land, the other party fails to pay for the same
(italicsours).
We hold, therefore, that the order of Judge Natividad compelling
defendantspetitionerstoremovetheirbuildingsfromthelandbelongingto
plaintiffsrespondentsonlybecausethelatterchoseneithertopayforsuch
buildingsnortoselltheland,isnullandvoid,foritamendssubstantiallythe
judgment sought to be executed and is, furthermore, offensive to articles
361 (now Article 448) and 453 (now Article 546) of the Civil Code,
(Ignaciovs.Hilario,76Phil.605,608[1946]).
AwordanentthephilosophybehindArticle448oftheCivilCode.
The original provision was found in Article 361 of the Spanish
CivilCode,whichprovided:
_______________
5Ignaciovs.Hilario,76Phil.605(1946).
6ibid.
482
482
SUPREMECOURTREPORTSANNOTATED
Depravs.Dumlao
ART. 361. The owner of land on which anything has been built, sown or
planted in good faith, shall have the right to appropriate as his own the
work, sowing or planting, after the payment of the indemnity stated in
Articles 453 and 454, or to oblige the one who built or planted to pay the
priceoftheland,andtheonewhosowed,theproperrent.
Aswillbeseen,theArticlefavorstheowneroftheland,bygiving
him one of the two options mentioned in the Article. Some
commentatorshavequestionedthepreferenceinfavoroftheowner
oftheland,butManresasopinionisthattheArticleisjustandfair.
...esjustalafacultadqueelcodigodaaldueodelsueloenelarticulo
361, en el caso de edificacion o plantacion? Algunos coinentaristas la
conceptuan injusta, y como un extraordinario privilegio en favor de la
propiedadterritorial.EntiendenqueimponeelCodigounapenaalposeedor
de buena fe y como advierte uno de los comentaristas aludidos, no se
veclaroelporquedetalpena...alobligaralqueobrodebuenafeaquedarse
coneledificiooplantacion,previoelpagodelterrenoqueocupa,porquesi
bien es verdad que cuando edifico o planto demostro con este hecho, que
queriaparasieledificiooplantio,tambienloesqueelqueedificooplanto
debuenafelohizoenlaerroneainteligenciadecreersedueodelterreno.
Posible es que, de saber lo contrario, y de tener noticia de que habia que
comprarypagarelterreno,nosehubieradecididoaplantarniaedificar.La
ley, obligandole a hacerlo, fuerza su voluntad, y la fuerza por un hecho
inocente de que no debe ser responsable. Asi podra suceder pero la
realidad es que con ese hecho voluntario, aunque sea inocente, se ha
enriquecido torticeramente con perjuicio de otro a quien es justo
indemnizarle.
Ennuestraopinion,elCodigoharesueltoelconflictodelamaneramas
justa y equitativa, y respetando en
lo posible el principio que para la
7
accesionseestableceenelart.358.
483
VOL.136,MAY16,1985
483
Depravs.Dumlao
built,sownorplantedingoodfaith,shallhavetherighttoappropriateashis
owntheworks,sowingorplanting,afterpaymentoftheindemnityprovided
forinarticles546and548,ortoobligetheonewhobuiltorplantedtopay
thepriceoftheland,andtheonewhosowed,theproperrent.However,the
builder or planter cannot be obliged to buy the land if its value is
considerablymorethanthatofthebuildingortrees.Insuchcase,heshall
payreasonablerent,iftheownerofthelanddoesnotchoosetoappropriate
thebuildingortreesafterproperindemnity.Thepartiesshallagreeuponthe
termsoftheleaseandincaseofdisagreement,thecourtshallfixtheterms
thereof.
Additionalbenefitswereextendedtothebuilderbutthelandowner
retainedhisoptions.
ThefairnessoftherulesinArticle448hasalsobeenexplainedas
follows:
Where the builder, planter or sower has acted in good faith, a conflict of
rights arises between the owners, and it becomes necessary to protect the
484
484
SUPREMECOURTREPORTSANNOTATED
Depravs.Dumlao
VOL.136,MAY16,1985
485
Depravs.Dumlao
constituteevidenceofwhetherornotcompliancewasmade
withintheperiodfixedbytheCourt.
c) In any event, DUMLAO shall pay DEPRA an amount
computed at Ten Pesos (P10.00) per month as reasonable
compensation for the occupancy of DEPRAs land for the
periodcountedfrom1952,theyearDUMLAOoccupiedthe
subject area, up to the commencement date of the forced
leasereferredtointheprecedingparagraph
d) The periods to be fixed by the trial Court in its Decision
shallbeinextendible,anduponfailureofthepartyobliged
to tender to the trial Court the amount due to the obligee,
the party entitled to such payment shall be entitled to an
order of execution for the enforcement of payment of the
amountdueandforcompliancewithsuchotheractsasmay
berequiredbytheprestationduetheobligee.
Nocosts.
486
486
SUPREMECOURTREPORTSANNOTATED
Depravs.Dumlao
SOORDERED.
Teehankee, Actg. C.J., Plana, Relova De la Fuente and
Alampay,JJ.,concur.
Gutierrez,Jr.,**J.,tooknopart.
Judgment set aside and case remanded to Regional Trial Court
forfurtherproceedings.
Notes.Article448,NewCivilCode,ismanifestlyintendedto
apply only to a case where one builds, plants, or sows on land in
whichhebelieveshimselftohaveaclaimoftitle,andnottolands
where the only interest of the builder, planter or dower is that of a
holder, such as a tenant. (Alburo vs. Villanueva, 7 Phil. 277 De
Laureanovs.Adil,72SCRA148Elorezavs.Evangelista,96SCRA
130.)TherulestatedinArticle526,thatapossessoringoodfaithis
onewhohasnoknowledgeofanyflawordefectinhistitleormode
ofacquisition,shouldbeappliedindeterminingwhetherthebuilder,
planter,orsoweractsingoodfaith.Goodfaithconsistsinthebelief
ofthebuilder,planterorsowerthatthelandishis,orthatbysome
title he has a right to build, plant or sow thereon. Good faith is
presumed, under Article 527, and he who alleges bad faith has the
burdenofprovingsuchbadfaith,(3Manreza209.)
o0o
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** Mr. Justice Hugo E. Gutierrez, Jr. took no part, having been one of the two
members of a Court of Appeals Division of Five Justices who dissented from the
majorityopinioncertifyingthiscasetothisCourt.
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VOL.136,MAY22,1985
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