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FACTS: Caruff Development Corporation owned several parcels of land Meanwhile, Caruff filed a case against PNB before the RTC of Manila,
along the stretch of Roxas Boulevard, Manila. Among them were Branch 2, whereby Caruff sought the nullification of PNBs foreclosure
contiguous lots covered by Transfer Certificate of Title (TCT) Nos. of its properties.[6] The case was docketed as Civil Case No. 85-29512.
120311, 120312, 120313, and 127649 (nowTCT No. 200760).
A Compromise Agreement[7] dated August 31, 1988 was later entered
Sometime in December 1975, Caruff obtained a loan from the into by Caruff, PNB, and the National Government thru APT. The parties
Philippine National Bank (PNB) to finance the construction of a 21- agreed, among other things, that Caruff would transfer and convey in
storey condominium along Roxas Boulevard.[2] The loan favor of the National Government, thru the APT, the lot covered by TCT
accommodation was secured by a real estate mortgage over three (3) No. 127649 (now TCT No. 200760), where it built the generating set
parcels of land covered by TCT Nos. 120311, 120312, and and sump pumps.
120313,[3] where Caruff planned to erect the condominium.
On September 9, 1988, the RTC rendered a Decision approving the
In 1979, Caruff started constructing a multi-storey building on the Compromise Agreement executed and submitted by the parties.
mortgaged parcels of land. Along with the other appurtenances of the Thus, by virtue of the Decision, the subject property was among those
building constructed by Caruff, it built a powerhouse (generating set) properties that were conveyed by Caruff to PNB and the National
and two sump pumps in the adjacent lot covered by TCT No. 127649 Government thru APT.
(now TCT No. 200760).
On July 5, 1989, respondent filed a case for Declaration of the existence
After the completion of the condominium project, it was constituted of an easement before the RTC of Manila, docketed as Spec. Proc. No.
pursuant to the Condominium Act (Republic Act No. 4726), as the 89-49563. Respondent alleged that the act of Caruff of constructing the
Legaspi Towers 300, Inc. powerhouse and sump pumps on its property constituted a voluntary
easement in favor of the respondent. It prayed, among other things,
However, for Caruffs failure to pay its loan with PNB, the latter
that judgment be rendered declaring the existence of an easement over
foreclosed the mortgage and acquired some of the properties of Caruff
the portion of the property covered by TCT No. 127649 (now TCT No.
at the sheriffs auction sale held on January 30, 1985.[4]
200760) that was being occupied by the powerhouse and the sump
Thereafter, Proclamation No. 50[5] was issued. It was aimed to promote pumps in its favor, and that the Register of Deeds of Manila annotate
privatization for the prompt disposition of the large number of non- the easement at the back of said certificate of title.[9]
performing assets of the government financial institutions, and certain
government-owned and controlled corporations, which have been In its Answer with Counterclaim and Cross-claim,[10] APT alleged that
found unnecessary or inappropriate for the government sector to respondent had no cause of action against it, because it was but a mere
maintain. It also provided for the creation of the Asset Privatization transferee of the land. It acquired absolute ownership thereof by virtue
Trust (APT). of the Compromise Agreement in Civil Case No. 85-2952, free from any
liens and/or encumbrances. It was not a privy to any transaction or
By virtue of Administrative Order No. 14 and the Deed of Transfer agreement entered into by and between Caruff, respondent, and the
executed by PNB, the National Government, thru the APT, became the bank. It further alleged that the continued use of the subject property
assignee and transferee of all its rights and titles to and interests in its by respondent and the condominium owners without its consent was
an encroachment upon its rights as absolute owner and for which it In the present case, neither type of easement was constituted over the
should be properly compensated. subject property.
In its allegations, respondent claims that Caruff constituted a voluntary
On January 12, 1995, after trial on the merits, the RTC rendered a easement when it constructed the generating set and sump pumps over
Decision[11] declaring the existence of an easement over the portion of the disputed portion of the subject property for its benefit. However, it
the land covered by TCT No. 127649 (TCT No. 200760 should be noted that when the appurtenances were constructed on the
CA AFFIRMED. subject property, the lands where the condominium was being erected
and the subject property where the generating set and sump pumps
were constructed belonged to Caruff. Therefore, Article 613 of the Civil
ISSUE: Code does not apply, since no true easement was constituted or existed,
because both properties were owned by Caruff.
Hence, the present petition assigning the following errors:
I Also, Article 624 of the Civil Code is controlling, as it contemplates a
situation where there exists an apparent sign of easement between two
THE PUBLIC RESPONDENT COURT OF APPEALS ERRED IN estates established or maintained by the owner of both.
AFFIRMING THE DECISION OF THE COURT A QUO IN FINDING In relation thereto, the Compromise Agreement, as approved
THAT [THE] PRESENCE OF THE GENERATOR SET by the court, clearly states, among other things, that:
(GENERATING SET) AND SUMP PUMPS CONSTITUES AN
EASEMENT. xxxx
2.0 That in consideration of the covenants
II hereunder stipulated, plaintiff [Caruff] Development
THE PUBLIC RESPONDENT COURT OF APPEALS ERRED IN Corporation (CDC), hereby terminates the instant case
AFFIRMING THE DECISION OF THE COURT A QUO IN against defendants Philippine National Bank (PNB)
DECLARING THE EXISTENCE OF AN EASEMENT OVER THE and the National Government/APT, and hereby:
PORTION OF LAND COVERED BY TCT NO. [200760] OCCUPIED
BY THE GENERATOR SET AND SUMP PUMPS NOS. 1 AND 2, 2.1 Assigns, transfers and conveys in favor of
PURSUANT TO ARTICLE 688 OF THE CIVIL CODE. defendant National government thru APT, CDCs rights,
title and interest in the Maytubig property, situated at
III the back of the Legaspi Towers 300 Condominium,
consisting of seven (7) contiguous lots with an
THE PUBLIC RESPONDENT COURT OF APPEALS ERRED IN aggregate area of 1,504.90 square meters, covered by
AFFIRMING THE DECISION OF THE COURT A QUO IN NOT the following Transfer Certificate of Title, viz: TCT No.
REQUIRING THE RESPONDENT-PETITIONER TO PAY ANY 23663 Pasay City Registry; TCT No. 142497 Metro
COMPENSATION TO PETITIONER, THE OWNER OF THE LAND, Manila 1 Registry; TCT No. 142141 Metro Manila 1
FOR THE USE OF ITS PROPERTY.[14] Registry; TCT No. 127649 Metro Manila 1 Registry; x x
x; all titles, free from any and all liens and
encumbrances, to be delivered, and the necessary
HELD: The petition is meritorious. papers and documents to be turned over/executed to
effect transfer in favor of the National
Government/APT, upon approval of this Compromise
Agreement; In the present case, there is no dispute as to who owns the subject
property and as to the fact that the National Government has been
x x x x.[17] deprived of the use thereof for almost two decades. Thus, it is but just
and proper that respondent should pay reasonable rent for the portion
of the subject property occupied by the generating set and sump
Thus, when the subject property was assigned to the National pumps, from the time respondent deprived the lawful owner of the use
Government thru the APT, no easement arose or was voluntarily thereof up to the present. To rule otherwise would be unjust
created from the transfer of ownership, considering that the parties, enrichment on the part of respondent at the expense of the
more particularly, Caruff, pledged that it was assigning, transferring, Government.
and conveying the subject property in favor of the National
Government thru the APT free from any and all liens and From the records, APT/PMO submitted, as part of its evidence, a
encumbrances. letter[21] dated June 18, 1992, wherein it fixed the monthly rental fee
Compromise agreements are contracts, whereby the parties undertake per square meter of the entire property at P56.25, or P1.81 per square
reciprocal obligations to resolve their differences, thus, avoiding meter per day. Hence, respondent should pay the National Government
litigation, or put an end to one already commenced.[18] As a contract, reasonable rent in the amount of P56.25 per square meter per month,
when the terms of the agreement are clear and explicit that they do not to be reckoned from August 28, 1989 up to the time when the
justify an attempt to read into it any alleged intention of the parties; the generating set and sump pumps are completely removed therefrom.
terms are to be understood literally, just as they appear on the face of
the contract.[19] Considering that Caruff never intended to transfer the REVERSED AND SET ASIDE.
subject property to PMO, burdened by the generating set and sump
pumps, respondent should remove them from the subject property. Legaspi Towers 300, Inc. is DIRECTED to REMOVE the generating set
and sump pumps 1 and 2 from the property covered by TCT No.
As regards PMOs claim for rent, respondent has been enjoying the use 200760 and to PAY reasonable rent at the rate of P56.25 per square
of the subject property for free from the time the rights over the meter/per month from August 28, 1989 until the same are completely
property were transferred and conveyed by Caruff to the National removed.
Government.
Respondents denied having entered into an agreement with Easement or servitude is an encumbrance imposed upon an
BISUDECO regarding the construction and the use of the disputed road. immovable for the benefit of another immovable belonging to a
They alleged that BISUDECO, surreptitiously and without their different owner. By its creation, easement is established either by law
knowledge and consent, constructed the disputed road on their (in which case it is a legal easement) or by will of the parties (a
properties and has since then intermittently and discontinuously used voluntary easement). In terms of use, easement may either be
the disputed road for hauling sugarcane despite their repeated continuous or discontinuous. The easement of right of way – the
protests. Respondents claimed they tolerated BISUDECO in the privilege of persons or a particular class of persons to pass over
construction and the use of the road since BISUDECO was a another’s land, usually through one particular path or linen – is
government-owned and controlled corporation, and the entire country characterized as a discontinuous easement because its use is in
intervals and depends on the act of man. Because of this discontinuous if it is used at intervals and depends on the act of man,
character, an easement of a right of way may only be acquired by like the easement of right of way.
virtue of a title.
The easement of right of way is considered discontinuous because it is
Article 622 of the New Civil Code is the applicable law in the case at bar, exercised only if a person passes or sets foot on somebody else’s land.
viz: Like a road for the passage of vehicles or persons, an easement of right
of way of railroad tracks is discontinuous because the right is exercised
Art. 622. Continuous non-apparent easements, and discontinuous ones, only if and when a train operated by a person passes over another's
whether apparent or not, may be acquired only by virtue of a title. property. In other words, the very exercise of the servitude depends
upon the act or intervention of man which is the very essence of
It is clear that the plaintiff failed to present any concrete discontinuous easements.
evidence to prove that there was such an agreement between
BISUDECO and defendants. The presence of physical or visual signs only classifies an easement
into apparent or non-apparent. Thus, a road (which reveals a right of
The lower court correctly disbelieved the plaintiffs-appellants’ way) and a window (which evidences a right to light and view) are
contention that an agreement existed because there is simply no direct apparent easements, while an easement of not building beyond a
evidence to support this allegation. BAPCI submitted purely certain height is non-apparent.
circumstantial evidence that are not sufficiently adequate as basis for
the inference than an agreement existed. By themselves, the It has been held that the existence of a permanent railway does not
circumstances the plaintiffs-appellants cited – i.e., the employment of make the right of way a continuous one; it is only apparent. Therefore, it
sixteen (16) relatives of the defendants-appellants; the defendants- cannot be acquired by prescription. It was also been held that a right of
appellants’ unjustified silence; the fact that the existence of the passage over another's land cannot be claimed by prescription because
agreement is known to everyone, etc. – are events susceptible of this easement is discontinuous and can be established only by title.
diverse interpretations and do not necessarily lead to BAPCI’s desired
conclusion. In this case, the presence of railroad tracks for the passage
of petitioner’s trains denotes the existence of an apparent but
2. No. , "It is already well-established that a right of way is discontinuous easement of right of way. And under Article 622 of the
discontinuous and, as such, cannot be acquired by prescription." Civil Code, discontinuous easements, whether apparent or not, may be
acquired only by title. Unfortunately, petitioner Bomedco never
Continuous and apparent easements are acquired either by virtue acquired any title over the use of the railroad right of way whether by
of a title or by prescription of ten years. law, donation, testamentary succession or contract. Its use of the right
of way, however long, never resulted in its acquisition of the easement
because, under Article 622, the discontinuous easement of a railroad
Under civil law and its jurisprudence, easements are either right of way can only be acquired by title and not by prescription.
continuous or discontinuous according to the manner they are
exercised, not according to the presence of apparent signs or
physical indications of the existence of such easements. Thus, Easements are either continuous or discontinuous according
easement is continuous if its use is, or may be, incessant without the to the manner they are exercised, not according to the presence of
intervention of any act of man, like the easement of drainage; and it is apparent signs or physical indications of the existence of such
easements. Hence, even if the road in dispute has been improved and other hand, as to the issue of estoppel, this Court likewise agrees with
maintained over a number of years, it will not change its discontinuous the finding of the CA that petitioner did not present any evidence that
nature but simply make the same apparent. To stress, Article 622 of the would show an admission, representation or conduct by respondents
New Civil Code states that discontinuous easements, whether apparent that will give rise to estoppel.
or not, may be acquired only by virtue of a title.
This Court agrees with the CA. The fact that the law is
categorical that discontinuous easements cannot be acquired by
prescription militates against petitioner’s claim of laches. To stress,
discontinuous easements can only be acquired by title. On the
10. CASE DIGEST: Unisource Commercial and Development An easement is a real right on another’s property, corporeal and
Corporation v. Chung immovable, whereby the owner of the latter must refrain from doing or
allowing somebody else to do or something to be done on his property,
for the benefit of another person or tenement. These are established
FACTS either by law (legal easement) or by the will of the owner (voluntary
easement).
Unisource Commercial and Development Corporation is the registered
owner of a parcel of which contains a memorandum of encumbrance of (1) Petitioner itself admitted that the existing easement is voluntary.
a voluntary easement carried over from the OCT of Encarnacion S. The opening of an adequate outlet to a highway can extinguish only
Sandico declaring that Francisco Hidalgo has the right to open doors in legal or compulsory easements, not voluntary easements like in the
the course of his lot and to pass through the land of Encarnacion case at bar. The fact that an easement by grant may have also qualified
Sandico, until the bank of the estero that goes to the Pasig River, and as an easement of necessity does not detract from its permanency as a
towards the right of a Callejon. The annotation does not expressly property right, which survives the termination of the necessity. This
provide that it will be binding to the heirs and assigns of the parties. easement of right of way, like any other contract, could be extinguished
Furthermore, the property of Hidalgo was already subdivided. only by mutual agreement or by renunciation of the owner of the
dominant estate. (Art. 631,NCC)
The memorandum of encumbrance was consistently annotated at the
back of every title covering Sandico’s property until it was acquired by
the petitioner. Hidalgo’s property, on the other hand was eventually
transferred to respondents Joseph, Kia and Cleto all surnamed Chung. (2) A voluntary easement of right of way is like any other contract that
is generally effective between the parties, their heirs and assigns,
Petitioner filed a Petition to Cancel the Encumbrance of Voluntary except in case where the rights and obligations arising from the
Easement of Right of Way on the ground that the dominant estate has contract are not transmissible by their nature, or by stipulation or by
an adequate access to a public road which is Matienza Street which was provision of law.
granted but the trial court but eventually reversed by the Court of
Appeals.
ISSUES
Petitioner Victoria became the owner of Lot A and constructed therein a residential
house and two garages. The other portions were sold by petitioner’s co-
heirs to the Tan’s. The Tans built improvements on Lot B that spilled into the
easement area.
They also closed the gate that the Salimbangons built. Unable to use the old
right of way, the Salimbangons lodged a complaint with the City
Engineer of Mandaue against the Tans, while the Tan’s filed an action with
the Regional Trial Courtfor the extinguishment of the easement on Lot B and
damages with application for preliminaryinjunction.
The RTC upheld the Salimbangons easement of right of way over the
alley on Lot B, the lot that belonged to the Tans.
The court pointed out that the easement was established by agreement
of the parties, hence only by mutual agreement of the parties could such easement
be extinguished.
Both parties appealed to the Court of Appeals which reversed the RTC
decision on the ground that when ownership of Lots B, D, and E
was consolidated into the Tans, the easement ceased to have any
purpose and became extinct.
ISSUES: Whether or not the easement of lateral and subjacent
support exists on the subject adjacent properties and, if it does,
12. Case Digest: Castro vs. Monsod whether the same may be annotated at the back of the title of the
G.R. No. 183719 : February 2, 2011 servient estate.