PROPERTY REVIEWER Part 7 POSSESSION

A. Definition and Concept

Art. 523. Possession is the holding of a thing or the enjoyment.

doctrine of constructive possession applies when the possession is under title calling for the whole, i.e., possession of a part is possession of the whole.

lessor is the constructive possessor, while the lessee is the actual possessor constructive possession also applies to movables, i.e., in criminal law, there is constructive possession even when the prohibited drugs or firearm is not found within the person of the accused. Cases Ramos v. Dir of Lands Facts Rostituto Romero obtained a possessory information title of a parcel of land in Nueva Ecija through a Royal Decree. He then sold this to Cornelio Ramos. Ramos then instituted appropriate proceedings to have his title registered. Opposition was entered by the Dir of Lands on the ground that Ramos has not acquired a good title to the land and the Dir of Forestry on the ground that the first parcel of land was a forest land. Ramos has cultivated only of the land. Held The occupancy of a part of the land with an instrument giving color of title is sufficient to give title to the entire tract of land. This is so because of constructive possession. The general rule is that the possession and cultivation of a portion of a tract of land under a claim of ownership of all is a constructive possession of all, IF the remainder is not in the adverse possession of another. 81

(1) Possession is the holding of a

thing of the enjoyment (exercise) of a right, whether by material occupation (de facto possession) or by the fact that the thing or the right is subjected to the action of our will. (2) It is a real right independent of and apart from ownership. Right of possession (jus possessionis) Right to possess (jus possidendi) independent right an incident of ownership

B. Essential requisites of possession

(1) Holding or control of a thing or

right (corpus) consists of either: (a) the material or physical either (b) exercise of a right (c) constructive possession

possession always includes the idea of physical occupation; no occupation = no possession EXCEPT Art. 537. Acts merely tolerated, and those executed clandestinely and without the knowledge of the possessor of a thing, or by violence, do not affect possession.

occupancy may be held by another in the possessors name.

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Possession in the eyes of the law does not mean that a man has to have his feet on every square meter of ground before it can be said that he is in possession. Ramos has color of title, acted in good faith, and had open, peaceable, and notorious possession of the property sufficient to apprise the community that the land was for his enjoyment. Thus, under the Public Land Law, he is entitled to a certificate of title to the entire tract of land. Director v. CA Facts A land was occupied by 40 tenants during the Spanish regime. They were granted homestead applications. Bruno died during the Spanish regime and was survived by 7 children. Brunos brother, Leon has a son named Onofre who obtained a tax declaration for the 138 hectares. Emilio Cabauatan, Onofres son, claimed that in 1937, Miguel Binag, lawyer of Brunos heirs, proposed to use the said declaration in the land registration proceedings. He promised to give Onofres heirs 1/3 of the land. Judge issued a decree for the registration of the parcel of land in the names of Brunos heirs. Fiscal objected because the land was subject to homestead applications. Held Brunos heirs have no right to the registration of the land. The rule on constructive possession does not apply because the major portion of the disputed 138 hectares has been in the adverse possession of homesteaders and their heirs. It is still part of the public domain until the patents are issued. (2) Intention to possess (animus possidendi)

it is a state of mind whereby the possessor intends to exercise and does exercise a right of possession, whether or not such right is legal

intention may be inferred from the fact that the thing in question is under the power and control of the possessor

may be rebutted by contrary evidence, e.g., stolen property is placed in a mans house without his knowledge.

C. Degrees of holding of possession

(1) Mere holding or possession without title whatsoever and in violation of the right of the owner.

applies to both movables and immovables both the possessor and the public know that the possession is wrongful

e.g., possession of a thief or a usurper of the land there can be no acquisitive prescription of movables under the NCC (Art. 1133) Art. 1133. Movables possessed through a crime can never be acquired through prescription by the offender. (2) Possession with juridical title but not that of ownership. peaceably acquired this will never ripen interesting full ownership as long as there is no repudiation of concept under which the property is held, i.e., from holder to that of owner (if such repudiation is made known to the owner, then extraordinary prescription of 30 yrs will apply) 82

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e.g., possession by tenant, depositary, agent, bailee, trustee, lessee, antichretic creditor even actual owner may be prevented by law from taking possession a depositary bank is not a possessor in this degree, since a deposit is actually a loan to the bank (3) Possession with just title or title sufficient to transfer ownership, but not from the true owner title deed of sale or contract of sale possession of a vendee from vendor who pretends to be the owner, i.e., innocent buyer of stolen goods good faith of buyer = just title Art. 1507. Where the seller of goods has a voidable title thereto, but his title has not been avided at the time of the sale, the buyer acquires a good title to the goods, provided he buys then in good faith, for value, and without notice of the sellers defect in title. if in good faith, extraordinary prescription of 30 years will apply this degree of possession ripens interesting full ownership by lapse of time (4) Possession with just title from the true owner possession springs from ownership (1) Possession for oneself, or possession exercised in ones own name and possession in the name of another. Art. 524. Possession may be exercised in one's own name or in that of another.

rights of possession may be exercised through agents (a) necessary exercised on behalf of the conceived child, of juridical persons, of persons not sui juris, and of the conjugal partnership (b) voluntary in cases of agents or administrators appointed by the owner or possessor this article contemplates two (2) situations (accdg to Manresa) : (a) that of a person who has the thing or enjoys the right, and is therefore the possessor (b) that of a person who neither has nor enjoys the right, and is therefore not a possessor but who exercises the possession of anther. Note: a lessee is a possessor in his own name, but in the concept of a holder. (2) Possession in the concept of an owner and possession in the concept of a holder with the ownership belonging to another Art. 525. The possession of things or rights may be had in one of two concepts: either in the concept of owner, or in that of the holder of the thing or right to keep or enjoy it, the ownership pertaining to 83

the delivery of possession transfers wnership and strictly speaking, it is the jus possidendi that is transferred (right to possess which is an incident of ownership)

D. Cases of possession

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another person. In the Concept of a Holder such possessor acknowledges in another a superior right which he believes to be ownership, whether his belief be right or wrong tenant possesses the thing leased as holder (but he possesses the lease right as owner) same with usufructuary and borrower of the thing loaned in commodatum In the Concept of Owner such possessor may be the owner himself or one who claims to be so concept is opinion, not of the possessor himself but of others not possessors in this concept: lessee on the land, a mere casual cultivator and administrator, and one who is aware of the adjudication of land to another only this class of possession can serve as title for acquiring dominion (1) possession may be lapsed of time ripen into full ownership, subject to certain exceptions (2) presumption of just title and cannot be obliged to show or prove it Art. 541. A possessor in the concept of owner has in his favor the legal presumption that he possesses with a just title and he cannot be obliged to show or prove it. Exception: Art 1131 Art. 1131. For the purposes of prescription, just title must be proved; it is never presumed. (3) possessor can bring all actions an owner can bring to protect his possession, except accion reivindicatoria (4) may employ self-help (Art 429) (5) can ask for the inscription of his possession in the registry of property (6) has right to the fruits and reimbursement for expenses (assuming he is a possessor in GF) (7) upon recovering possession from unlawful deprivers, can demand fruits and damages (8) generally, he can do on the things possessed everything an owner is authorized to do until he is ousted by one who has a better right (e.g., he can exercise right of pre-emption, he is entitled to indemnity in case of expropriation) (9) possession in GF and possession in BF (see below) 84
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Art. 540. Only the possession acquired and enjoyed in the concept of owner can serve as a title for acquiring dominion. good faith or bad faith is immaterial except for purposes of prescription (GF: 10 yrs; BF: 30 yrs)

effects of possession in the concept of an owner:

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(3) Possession in good faith and possession in bad faith Art. 526. He is deemed a possessor in good faith who is not aware that there exists in his title or mode of acquisition any flaw which invalidates it. He is deemed a possessor in bad faith who possesses in any case contrary to the foregoing. Mistake upon a doubtful or difficult question of law may be the basis of good faith. Art. 528. Possession acquired in good faith does not lose this character except in the case and from the moment facts exist which show that the possessor is not unaware that he possesses the thing improperly or wrongfully. possession in good faith ceases from the moment defects in the title are made known to the possessor when an action is filed to recover possession, good faith ceases from the date of the summons to appear at the trial Case Pleasantville Devt Corp v CA (supra) Facts Edith Robillo purchased from Pleasantville a land (Lot 9) in its subdivision in Bacolod. The rights over the lot were then bought by Jardinico. Lot 9 was vacant at that time. Upon completion of payments and securing a TCT in his name, Jardinico discovered that improvements had been introduced on Lot 9 by Wilson Kee, who had taken possession thereof. It appears that Kee bought on installment Lot 8 from CTTEI, the real estate agent of Pleasantville. Kee possessed the lot even before the completion of payments. When Kee and his wife inspected Lot 8, the lot pointed to them was Lot 9 instead of Lot 8. Jardinico confronted Kee after discovering that he was occupying Lot 9. Kee refused to vacate hence Jardinico filed an ejectment suit. CA ruled that Kee was a builder in GF, as he was unaware of the mix-up when he began the construction of the improvements. The erroneous delivery was due to the fault of the CTTEI and thus imputable to Pleasantville, the principal. Held The SC agrees with the CA that Kee is a builder in GF. The roots of the controversy can be traced in the errors committed by CTTEI when it pointed the wrong lot to Kee. Good faith consists in the belief of the builder that the land he is building on is his and he is ignorant of any defect or flaw in his title. And as good faith is presumed, Pleasantville has the burden of proving bad faith on the part of Kee. At the time he built the improvements on Lot 8, Kee belived that the said lot was the one he bought. He was not aware that the lot delivered to him was not Lot 8. Pleasantville failed to prove otherwise.

(a) mistake upon a doubtful or

difficult question of law as a basis of good faith [Art 526 (3)]

Art. 526. x x x

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Mistake upon a doubtful or difficult question of law may be the basis of good faith. loan should be paid in 4 years. Failure to pay will mean that she will execute a deed of absolute sale of the property (the improvements) to Kasilag. A year later, she failed to pay the interest of the loan and the taxes. Thus, a verbal agreement (2nd agreement) was entered into whereby she conveyed to Kasilag the possession of the land on the condition that he will not collect interest, would pay the taxes, and would benefit from the fruits of the land. By virtue of this 2nd agreement, Kasilag entered upon the possession of the land. Both of them were unaware that the legal term for the contract they entered into was antichresis. Emiliana died and his heirs sought to recover from Kasilag the possession of the property. CFI: ruled from the heirs of Emiliana. CA: affirmed but modified the said decision holding that the heirs are owners of the land because the 1st agreement was null and void; and that Kasilag is not entitled to the value of the improvements he made on the land. Held Kasilag cannot be said to have acted in bad faith by taking possession of the land as a consequence of the absolute sale he made with Emiliana, the latter being prohibited from encumbering or alienating the land for 5 years because of a homestead patent (Sec 116 of Act No. 2874). A person is deemed a possessor in BF when he knows that there is a flaw in his title or in the manner of acquisition by which it is invalidated. It cannot be deduced from the fact that Kasilag was aware of a flaw in his title or in the manner of its acquisition, aside from the prohibition in Sec 116. Therefore, the question is whether GF may be premised upon ignorance of the law. Gross and inexcusable ignorance of the law may not be the basis of good faith, but 86
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possessor in GF: unaware that there exists a flaw which invalidates his acquisition of the thing GF consists in the possessors belief that the person from whom he receive a thing was the owner of the same and could convey his title GF is always presumed, and he who alleges BF on the part of the possessor has the burden of proving his allegation belief of the possessor that he is the legal owner must be based on some title or mode of acquisition, i.e., sale, donation, inheritance

error in the application of the law, in the legal solutions that arise form such application, in the appreciation of the legal consequences of certain acts, and in the interpretation of doubtful provisions or doctrines, may properly serve as the basis of GF possessor in BF: knows that his title is defective Case Kasilag v Rodriguez

Facts Emiliana Ambrosio was issued a homestead patent on Jan 11, 1931. A TCT was subsequently issued to him. It is prohibited to sell or encumber a land obtained through a homestead patent 5 years from its issuance. On May 16, 1932, she and Marcial Kasilag entered into a contract of loan of P1,000 wherein she mortgaged the improvements of the land as security for the loan (1st agreement). The agreement stipulated that she will pay the taxes on the land, pay the interest of the loan, and that the

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possible, excusable ignorance may be such basis. Kasilag is not conversant with the laws because he is not a lawyer. In taking possession of the property and in consenting to receive its fruits, he did not know that the possession and enjoyment of the fruits are the attributes of the contract of an an antichresis and is prohibited by Sec 116. It can be concluded therefore that Kasilags ignorance of Sec 116 is excusable and may be a basis of good faith. He is entitled therefore to be indemnified for the improvements OR he can own the land by paying its value, at the election of the heirs (BPS rule, remember). Labnotes Notice how the lawyer drew a contract trying to go around the Homestead law. Not many lawyers know the clear concept of antichresis1.

res nullius (abandoned or ownerless property) may be possessed but cannot be acquired by prescription Art. 1113. All things which are within the commerce of men are susceptible of prescription, unless otherwise provided. Property of the State or any of its subdivisions not patrimonial in character shall not be the object of prescription. but there are more things which can be possessed than those which can be the object of prescription not all things susceptible of appropriation can be the object of prescription prescription indicates the birth of a right in one person and the extinguishment of a right in another

E. What things or rights may be possessed

Art. 530. Only things and rights which are susceptible of being appropriated may be the object of possession. Cannot be appropriated and therefore cannot be possessed: (1) property of public dominion (2) res communes (3) easements (discontinuous or non-apparent) (4) things specifically prohibited by law

cannot happen in common things, i.e., sunlight, air, roads, shores, and res nullius

F. What may not be possessed by private persons

(1) res communes (2) property of public dominion (3) right under discontinuous and/ or non-apparent easement only continuous and apparent easement can be possessed

G. Acquisition of Possession
(1) Ways of acquiring possession Art. 531. Possession is acquired by the material occupation of a thing or the exercise of a right, or by the fact that it is subject to the action of our will, or by the proper acts and legal formalities established for acquiring such right. 87

Art. 2132, NCC. By the contract of antichresis the creditor acquires the right to receive the fruits of an immovable of his debtor, with the obligation to apply them to the payment of the interest, if owing, and thereafter to the principal of his credit.

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PROPERTY REVIEWER (a) Material occupation of the thing

occupation is used in the general sense, i.e., a means of acquiring possession of things, not of rights kind of possession acquired is only the fact of possession, not the legal right of possession (i) Doctrine of constructive possession no actual possession but subject to control possession of a portion of a parcel of land under the claim of ownership or title is constructive possession of the entire parcel of land, unless a portion thereof is adversely possessed by another (Ramos v Dir of Lands) (ii) Includes constructive delivery (equal to material occupation in cases where occupation is essential to the acquisition of prescription) (b) traditio constitutum possessorium owner alienates the thing, but continues to possess the same but as that of depositary, pledge, or tenant (b) subjection to the action of our will different from and independent of juridical acts and legal formalities as it refers more to the right of possession that to possession as a fact (1) traditio simbolica -- effected by delivering some object or symbol, placing under the thing under the control of the transferee, such as the keys to the warehouse containing the goods delivered [Art 1498 (2)] Art. 1498. x x x With regard to movable property, its delivery may also be made by the delivery of the keys of the place or depository where it is stored or kept.

(a) traditio brevi manu

Art. 1499. The delivery of movable property may likewise be made by the mere consent or agreement of the contracting parties, if the thing sold cannot be transferred to the possession of the vendee at the time of the sale, or if the latter already had it in his possession for any other reason. one who possesses a thing by title other than ownership continues to possess the same but under a new title, that of ownership

(2) traditio longa manu

effected by the transferor pointing out to the transferee the things which are being transacted Art. 1499. The delivery of movable property may likewise be made by the mere consent or agreement of the contracting parties, if the thing sold cannot be transferred to the possession of the vendee at the time of the sale, or if the latter already had it in his possession for any other reason. (c) proper acts and legal formalities 88

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refers to the acquisition of possession by sufficient title, whether inter vivos or mortis causa, or lucrative or onerous e.g., donations, succession, contracts, judicial writs of possession, writs of execution of judgments, and registration of public instruments Case Banco Espanol Filipino v. Peterson Facts To secure payment of loan, Reyes mortgaged to the bank several pieces of property and pledged part of his property. The latter goods were delivered to the depositary. Garcia obtained favorable judgment against Reyes property. Garcia requested the sheriff to seize the goods from the warehouse. Held The sheriff could not have legally levied upon the property. There was a perfect contract of pledge and the depositary was placed in the possession of the goods after the symbolic transfer by means of delivery to him of the keys to the warehouse where the goods were kept. The banks claim that the property has preference because Garcia is a third person whose claim against Reyes was not secured by a pledge. (2) By whom possession may be acquired Art. 532. Possession may be acquired by the same person who is to enjoy it, by his legal representative, by his agent, or by any person without any power whatever: but in the last case, the possession shall not be considered as acquired until the person in whose name the act of possession was executed has ratified the same, without prejudice to the juridical consequences of negotiorum gestio in a proper case. (a) by same person Elements of personal acquisition must have the capacity to acquire possession must have the intent to possess possibility to acquire possession must be present (b) by his legal representative Requisites: representative or agent has the intention to acquire the thing or exercise the right for another, and not for himself person for whom the thing has been acquired or right exercised, has the intention of possessing such thing or exercising such right (c) by his agent agency is the most usual form of authority to acquire possession for another principal acquires the possession from the moment the agent holds the thing for the former (d) by any person without any power whatsoever but subject to ratification, without prejudice to proper case of negotiorum gestio Art. 2144. Whoever voluntarily takes charge of the agency or management of the business or property of another, without any power from the latter, is obliged to continue the same until the termination of the affair and its 89
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incidents, or to require the person concerned to substitute him, if the owner is in a position to do so. This juridical relation does not arise in either of these instances: (1) When the property or business is not neglected or abandoned; (2) If in fact the manager has been tacitly authorized by the owner. In the first case, the provisions of Articles 1317, 1403, No. 1, and 1404 regarding unauthorized contracts shall govern. In the second case, the rules on agency in Title X of this Book shall be applicable. Art. 2149. The ratification of the management by the owner of the business produces the effects of an express agency, even if the business may not have been successful. Art. 2150. Although the officious management may not have been expressly ratified, the owner of the property or business who enjoys the advantages of the same shall be liable for obligations incurred in his interest, and shall reimburse the officious manager for the necessary and useful expenses and for the damages which the latter may have suffered in the performance of his duties. The same obligation shall be incumbent upon him when the management had for its purpose the prevention of an imminent and manifest loss, although no benefit may have been derived. owner is liable for obligations incurred in his interest, and shall reimburse the officious manager for necessary and useful expenses and damages which the latter may have suffered

ratification by the person for whom the thing was acquired will retroact to the time of apprehension by the gestor (e) Qualifiedly, minors and incapacitated persons Art. 535. Minors and incapacitated persons may acquire the possession of things; but they need the assistance of their legal representatives in order to exercise the rights which from the possession arise in their favor. incapacitated insane, lunatics, deaf-mutes who do not know how to read and write, spendthrifts, and those under civil interdiction refers only to possession of things, not of rights, and to acquisition of possession by material occupation

(3) What do not affect possession (a) acts merely tolerated Art. 537. Acts merely tolerated, and those executed clandestinely and without the knowledge of the possessor of a thing, or by violence, do not affect possession Art. 1119. Acts of possessory character executed in virtue of license or by mere tolerance of the owner shall not be available for the purposes of possession.

acts merely tolerated are those which by reason of neighborliness or familiarity, the owner of the property allows his neighbor or 90

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another person to do on the property there is a thin dividing line between tolerance and abandonment of rights; it is for the courts to determine are owners of a group of haciendas who make use of such roads for 20 years with knowledge of Benedictos for transporting supplies. There is no outlet to a public road. The Benedictos, one day, just closed the road. Cuaycong asks that the road be opened. Held The road is not public. It was not owned by the government nor is it being maintained by the government. Had the road been maintained at the public expense with acquiescence of Benedictos, this would indicate adverse possession by the government as would ripen into title. But there is no such evidence. If owner of a tract of land, to accommodate the public, permits them to cross his property, it is not his intention to divest himself of ownership or to establish an easement. Such possession is not affected by acts of possessory character which are merely tolerated. Astudillo v PHHC Facts Mitra bought a lot from PHHC in 1961. The said lot has been occupied by Peregrina Astudillo uninterruptedly since 1957. PHHC ignored her requests for the cancellation of the title in favor of Mitra and for the resale to her. TC denied her petitions for certiorari and mandamus, because obviously, she is a mala fide squatter. Held As a squatter, she has no possessory rights over the disputed lot. In the eyes of the law, the award to Mitra did not prejudice her since she was bereft of any rights over the lot. The States solicitude from the destitutes and the have-nots does not 91
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(b) acts executed clandestinely AND without knowledge of the possessor acts must not only be clandestine but must also be unknown to the owner (c) acts by violence as long as the possessor objects thereto (i.e., he files a case) Art. 536. In no case may possession be acquired through force or intimidation as long as there is a possessor who objects thereto. He who believes that he has an action or a right to deprive another of the holding of a thing, must invoke the aid of the competent court, if the holder should refuse to deliver the thing.

person seeking to get possession should never take the law into his own hands, but must invoke the aid of competent courts when a person is in possession of land and has maintained that possession for years, he cannot be forcibly dispossessed thereof. Cases Cuaycong v Benedicto Facts Benedictos own Hacienda Toren where the Nanca-Victorias and Dacumen-Toreno road run. Cuaycong

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mean that it should tolerate usurpations pf property, public or private. Peran v CFI Facts Jose Evasco owns an unregistered land. He executed an extrajudicial partition of it among his 5 heirs, one of which was his son, Alejandro. He allowed and tolerated his niece Encarnacion (daughter of his brother, Anacleto, who is also one of the heirs) to erect a house on a portion of his lot. In 1972, Alejandro sold the lot to Torella who in turn sold it to Sabater and then the latter sold it to Peran in 1979. When Peran asked Encarnacion to vacate, she refused. Thus, a complaint of Forcible Entry and Unlawful Detainer was filed against Encarnacion. Held The CFI erred when it reckoned the counting of the 1 yr period within which to file the action from Dec 31, 1972, and not from the time of demand. A forcible entry and unlawful detainer action must be brought within 1 yr. The 1 yr period of limitation period commences from the time of demand to vacate, and when several demands are made, the same is counted from the last letter of demand. The demand to vacate having been made in Jan 1979 and the suit having been instituted on Feb 8, 1979, the Municipal Court acted within its jurisdiction. The CFI also erred in assuming that prior possession in whatever character is protected by law. The prior possession of Encarnacion and her husband was only by mere tolerance and therefore does not vest in them a right which they can assert against Peran. Possession by tolerance is lawful, but this becomes illegal when, upon demand to vacate by the owner, the possessor refuses to comply with such demand. A possessor by mere tolerance is necessarily bound by an implied promise to vacate upon demand. (4) Rules to solve conflict of possession Art. 538. Possession as a fact cannot be recognized at the same time in two different personalities except in the cases of co-possession. Should a question arise regarding the fact of possession, the present possessor shall be preferred; if there asre two possessors, the one longer in possession; if the dates of the possession are the same, the one who presents a title; and if all these conditions are equal, the thing shall be placed in judicial deposit pending determination of its possession or ownership through proper proceedings. General Rule: Possession cannot be recognized in two different personalities Exception: in cases of co-possession by co-possessors without conflict claims or interest. In case of conflict of possession, the following order of preference must be followed: present possessor or actual possessor (2) if 2 or more possessors, the one longer in possession (3) if dates of possession are the same, the one who presents a title (4) if all the condition are equal, the thing shall be placed in judicial deposit pending determination of possession or ownership through proper proceedings 92
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Prefer ence in case of conflict of ownership (double sales) Art. 1544. If the same thing should have been sold to different vendees, the ownership shall be transferred to the person who may have first taken possession thereof in good faith, if it should be movable property. Should it be immovable property, the ownership shall belong to the person acquiring it who in good faith first recorded it in the Registry of Property. Should there be no inscription, the ownership shall pertain to the person who in good faith was first in the possession; and, in the absence thereof, to the person who presents the oldest title, provided there is good faith. (1) for immovable property (a) first who registered his right in GF in the Registry of Property (b) if no registration, first who possessed in GF (c) if no possession, one who presents the oldest title (2) for movable property: first who possessed in GF should he be disturbed therein he shall be protected in or restored to said possession by the means established by the laws and the Rules of Court. (a) action to recover possession (i) summary proceedings forcible entry and unlawful detainer. Plaintiff may ask for writ of preliminary mandatory injunction may be asked. Within 10 days from filing of complaint in forcible entry

forcible entry unlawful detainer

the same writ is available in unlawful detainer actions upon appeal (Art 1674) Art. 1674. In ejectment cases where an appeal is taken the remedy granted in Article 539, second paragraph, shall also apply, if the higher court is satisfied that the lessee's appeal is frivolous or dilatory, or that the lessor's appeal is prima facie meritorious. The period of ten days referred to in said article shall be counted from the time the appeal is perfected. Case Yu v Honrado Facts Marcelo Steel Corp sold 42 metric tons of scrap engine blocks to Refuerzo, an alleged swindler. The latter then sold the engine blocks to the Yu spouses, owners of Soledad Junk Shop. The purchase was in GF. The court then issued a warrant for the seizure of the goods in possession of Yu. The goods were seized and placed interesting the premises of Marcelo Steel for 93

H. Effects of Possession (1)

In general, every possessor has a right to be respected in his possession; if disturbed therein, possessr has right to be protected in or restored to said possession Art. 539. Every possessor has a right to be respected in his possession; and

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safekeeping. Information was filed against Yu and Refuerzo. Yus information was dismissed. The Yu spouses are petitioning for the return of the engine blocks. Held In the absence of any final judgment in the estafa case as to the civil liability of the accused to make restitution, the Yu spouses can get the scraps back. Although the search warrant was validly issued, it does not follow that Marcelo Steel is entitled to recover the scrap from a third person who bought it in GF. The acquirer and possessor in GF of a chattel or movable property is entitled to be respected and protected in his possession as if he were the true owner, until a competent court rules otherwise. Such possession in GF is equivalent to title and every possessor has a right to be respected in his possession (Arts 539 and 559). The sale of the scraps to Yu was covered by a sales invoice and made in the ordinary course of business. (ii) accion publiciana (based on superior right of possession, not of ownership) action for recovery of real property upn mere allegation and proof of a better right without the need of showing title issue: POSSESSION only no need to wait for the expiration of 1 yr. before bringing such action; if no action for forcible entry and unlawful detainer within 1 yr, this action may still be brought accion reivindicatoria (recovery of ownership) action setting up not only the right of possession, but also of title and ownership action in case of refusal of a party to deliver possession of property due to an adverse claim of ownership (iv) action for replevin for recovery of movable property (b) Possessor can employ self-help Art. 429. The owner or lawful possessor of a thing has the right to exclude any person from the enjoyment and disposal thereof. For this purpose, he may use such force as may be reasonably necessary to repel or prevent an actual or threatened unlawful physical invasion or usurpation of his property. (2) Entitlement to fruits possessor in GF/ BF Art. 544. A possessor in good faith is entitled to the fruits received before the possession is legally interrupted. Natural and industrial fruits are considered received from the time they are gathered or severed. Civil fruits are deemed to accrue daily and belong to the possessor in good faith in that proportion. Art. 545. If at the time the good faith ceases, there should be any natural or industrial fruits, the possessor shall have a right to a part of the expenses of cultivation, and to a part of the net harvest, both in proportion to the time of the possession. The charges shall be divided on the same basis by the two possessors. 94
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The owner of the thing may, should he so desire, give the possessor in good faith the right to finish the cultivation and gathering of the growing fruits, as an indemnity for his part of the expenses of cultivation and the net proceeds; the possessor in good faith who for any reason whatever should refuse to accept this concession, shall lose the right to be indemnified in any other manner. Art. 547. If the useful improvements can be removed without damage to the principal thing, the possessor in good faith may remove them, unless the person who recovers the possession exercises the option under paragraph 2 of the preceding article. Art. 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.

Possessor in GF is entitled to the fruits received before the possession is legally interrupted. The law limits the right though only to the fruits of the thing and therefore he has no rights to the objects which do not constitute fruits, e.g., tress in the orchard

Possessor in BF has no right to receive any fruits. Those already gathered and existing will have to be returned; with respect to those lost, consumed, or which could have been received, he must pay the value. But the possessor in BF does not have to pay interest on the value of fruits he has to pay, because such amount is unliquidated. (3) Reimbursement for expenses Art. 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. Useful expenses shall be refunded only to the possessor in good faith with the same right of retention, the person who has defeated him in the possession having the option of refunding the amount of the expenses or of paying the increase in value which the thing may have acquired by reason thereof.

Possessor in GF entitled to reimbursement for (1) necessary and (2) useful expenses, with the right to retain the thing until he has been reimbursed Useful expenses reimbursement will be based either on: (1) the amount of expenses; or (2) on the increase in the value which the thing may have acquired by reason of such improvement Useful improvements General Rule: can be removed

Possessor in BF entitled to reimbursement for necessary expenses, but NOT for useful expenses. Also has NO right of retention over the thing

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without damage to the principal thing, possessor in GF may remove them Exception: if the owner wants to keep the improvements Expense for pure luxury will not be refunded but may be removed if : (1) it can be removed without injury to the thing or (2) if the owner does not prefer to refund the amount has same rights with possessor in GF 3 requisites to make possession of movable equivalent to a title: (1) that the possession is in GF (2) that the owner has voluntarily parted with the possession of the thing (3) that the possession is in the concept of an owner Labnotes Compare Art. 559 with Arts. 1131 and 1132 Art. 1131. For the purposes of prescription, just title must be proved; it is never presumed. Art. 1132. The ownership of movables prescribes through uninterrupted possession for four years in good faith. The ownership of personal property also prescribes through uninterrupted possession for eight years, without need of any other condition. With regard to the right of the owner to recover personal property lost or of which he has been illegally deprived, as well as with respect to movables acquired in a public sale, fair, or market, or from a merchant's store the provisions of Articles 559 and 1505 of this Code shall be observed.

(4) Possession of movable acquired in GF (in concept of an owner) is equivalent to title Art. 559. The possession of movable property acquired in good faith is equivalent to a title. Nevertheless, one who has lost any movable or has been unlawfully deprived thereof may recover it from the person in possession of the same. If the possessor of a movable lost or which the owner has been unlawfully deprived, has acquired it in good faith at a public sale, the owner cannot obtain its return without reimbursing the price paid therefor. possessor has actual title which is defeasible only by true owner

I. Effects of possession in the concept of an owner

(see part D)

J. Presumptions in favor of the possessor

Labnotes Q: What is the usefulness of these presumptions? 96

one who has lost a movable or has been unlawfully deprived thereof may recover it without reimbursement, except if possessor acquired it at a public sale

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A: To be used for purposes of acquisitive prescription (1) Of good faith until the contrary is proved by suit from recovery by the true owner usually from the time of service of summons Labnotes The latest time when the possessor will have knowledge regarding the defects is when the summons are served. Therefore, knowledge regarding the defects can be earlier than the service of summons. Case Cordero v Cabral Facts Felipa Cordero and her children filed a complaint that a portion of the land they inherited for her husband Gregorio Ocampo was illegally possessed by Victoria Cabral and her tenants. Cabral et al allege that they have been in actual, adverse, peaceful, and continuous possession, of that portion of land. The Corderos are demanding them to surrender the possession of the land and/or vacate it. The Cabrals refused. CFI served summons to the Cabrals. CFI then dismissed the complaint for recovery on the ground that the Cabrals have been in open, continuous, and adverse possession of that portion of land. CA: the Corderos have the right to recover. BUT the CA went further. It found that the land was sold orally by Gregorio Ocampo to Rodriguez (who is a predecessor of the Cabrals) and thus became binding upon Gregorio. Held The SC said that the CA erred in ruling that the land was orally sold to Rodriguez, the predecessors of the Cabrals. The Cabrals, by their own admission, are in possession of the 97
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Art. 527. Good faith is always presumed, and upon him who alleges bad faith on the part of a possessor rests the burden of proof.

only a presumption juris tantum it is presumed that the right of the possessr is well-founded, since the possession is the outward sign of ownership declaration of nullity of a title does not imply that it was acquired in BF presumption of GF is not immediately changed into BF in the basis of constructive notice of registration proceedings (2) Of continutity of initial GF in which possession was commenced or possession in GF does not lose its character Exception: in the case and from the moment the possessor became aware or is not unaware of improper or wrongful possession. Art. 528. Possession acquired in good faith does not lose this character except in the case and from the moment facts exist which show that the possessor is not unaware that he possesses the thing improperly or wrongfully. there is GF until defects in the title are made known to the possessor by extraneous evidence or

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disputed land. There is no evidence that they were possessors in BF. However, their GF ceased when they were served with summons to answer the complaint. As possessors in BF from the service of the summons, they shall reimburse the fruits received. (3) Of enjoyment of possession in the same character in which was acquired until the contrary is proved. Art. 529. It is presumed that possession continues to be enjoyed in the same character in which it was acquired, until the contrary is proved. Labnotes e.g., if at the start A is a lessee, he will remain as such until he proves that he has repudiated that. But his possession is in the character of a possessor in BF (because he is aware that he just repudiated it). (4) Of non-interruption of possession in favor of present possessor who proves possession at a previous time until the contrary is proved. Art. 554. A present possessor who shows his possession at some previous time, is presumed to have held possession also during the intermediate period, in the absence of proof to the contrary. Art. 11222. If the natural interruption is for only one year or less, the time elapsed shall be counted in favor of the prescription. Art. 1123. Civil interruption is produced by judicial summons to the possessor. Art. 1124. Judicial summons shall be deemed not to have been issued and shall not give rise to interruption: (1) If it should be void for lack of legal solemnities; (2) If the plaintiff should desist from the complaint or should allow the proceedings to lapse; (3) If the possessor should be absolved from the complaint. In all these cases, the period of the interruption shall be counted for the prescription. in case of natural interruption, the old possession loses all its juridical effects and therefore cannot be tacked to the new possession for purposes of prescription in case of civil interruption, if possession is recovered, it can be connected to the time that has elapsed as if it were continuous and can be counted in favor of prescription Labnotes 2 Kinds of Interruption (1) Natural (Art 1122)if interruption is for more than 1 year . BUT it is
2

Art. 1121. Possession is naturally interrupted when through any cause it should cease for more than one year. The old possession is not revived if a new possession should be exercised by the same adverse claimant.

I dont think this really refers to natural interruption since it will be contradictory to Art 1121s definition of a natural interruption (i.e., it must be for more than 1 yr). Maybe the interruption referred to here is an interruption other than civil interruption which has a period of 1 yr or less. In which case, it will be counted for purposes of prescription.

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not natural interruption if a third person is possessing the property for the owner. However, if he is possessing it for himself, then there is natural interruption (2) Civil (Art 1123) will start from the service of summons but the proper action must be the one filed (5) Of continuous possession or noninterruption of possession of which he was wrongfully deprived for all purposes favorable to him Art. 561. One who recovers, according to law, possession unjustly lost, shall be deemed for all purposes which may redound to his benefit, to have enjoyed it without interruption. applies to both possessors in BF and GF, but only insofar as it redounds to their benefit GF possessor is deemed in continuous possession for purposes of prescription BF possessor is not obliged to return fruits which might have been received during the time that he was not in possession because to consider him in continuous possession would be prejudicial to him Exceptions Art. 426. Whenever by provision of the law, or an individual declaration, the expression "immovable things or property," or "movable things or property," is used, it shall be deemed to include, respectively, the things enumerated in Chapter 1 and Chapter 2. Whenever the word "muebles," or "furniture," is used alone, it shall not be deemed to include money, credits, commercial securities, stocks and bonds, jewelry, scientific or artistic collections, books, medals, arms, clothing, horses or carriages and their accessories, grains, liquids and merchandise, or other things which do not have as their principal object the furnishing or ornamenting of a building, except where from the context of the law, or the individual declaration, the contrary clearly appears. (ii) Non-interruption of possession of hereditary property Art. 533. The possession of hereditary property is deemed transmitted to the heir without interruption and from the moment of the death of the decedent, in case the inheritance is accepted. One who validly renounces an inheritance is deemed never to have possessed the same. Art. 1078. Where there are two or more heirs, the whole estate of the decedent is, before its partition, owned in common by such heirs, subject to the payment of debts of the deceased. (iii) Of just title in favor of possessor in concept of owner 99
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recovery of possession must be according to the law, i.e., through the use of proper actions or with the aid of the competent authority (6) Other presumptions with respect to specific property rights (i) Of extension of possession of real property to all movables contained therein so long as it is not shown that they should be excluded

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Art. 541. A possessor in the concept of owner has in his favor the legal presumption that he possesses with a just title and he cannot be obliged to show or prove it. BUT: Art. 1141. Real actions over immovables prescribe after thirty years. This provision is without prejudice to what is established for the acquisition of ownership and other real rights by prescription. But the real right of possession is not lost till after the lapse of ten years. Art. 537. Acts merely tolerated, and those executed clandestinely and without the knowledge of the possessor of a thing, or by violence, do not affect possession. (1) Abandonmentnot limited to that by the owner (in which case, the thing to becomes res nullius); includes the giving up of possession, and not necessarily of ownership, by every possessor opposite of occupation voluntary renunciation of all rights which a person may have in the thing, with the intent to lose such thing to be effective: (1) necessary that it be made by a possessor in the concept of owner; and (2) must clearly appear that the spes recuprandi is gone and the animus revertendi be finally given up

possession is presumed ownership, unless the contrary is proved (because the presumption is prima facie) just titlethat which is legally sufficient to transfer the ownership or the real right to which it relates just title does not always consist in documents. It may be proved by testimonies of witnesses

K. Possession may be lost by:

Art. 555. A possessor may lose his possession: (1) By the abandonment of the thing; (2) By an assignment made to another either by onerous or gratuitous title; (3) By the destruction or total loss of the thing, or because it goes out of commerce; (4) By the possession of another, subject to the provisions of Article 537, if the new possession has lasted longer than one year.

by virtue of abandonment, the thing is left without owner or possessor

(2) Assignmentcomplete transmission of ownership rights to another person, gratuitously or onerously (3) Destructionmust be total, otherwise, partial loss will result in loss of possession in the lost part only (4) Possession of anotherthe possession that is lost here refers only to possession as a fact (de 100

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facto), not the legal right of possession (de jure) Controlmeans juridical control or right,or that the thing remains in ones partrimony But if the thing is most in such a manner that the owner does not know where it is, possession has ceased, even if it has not been found or taken by another.

after 1 year, the actions forcible entry and unlawful detainer can no longer be brought. But the accion publiciana may still be instituted to recover possession de jure the possession that is lost, i.e., possession de facto, is also the possession that the new possessor acquires real right of possession is lost only after 10 years

IMPT! all the other 3 cases of loss of possession (abandonment, assignment, destruction) refer to loss of possession de jure (real right of possession) and therefore cannot be recovered anymore by any action. Art. 557. The possession of immovables and of real rights is not deemed lost, or transferred for purposes of prescription to the prejudice of third persons, except in accordance with the provisions of the Mortgage Law and the Land Registration laws. third parties relying on the Registry of Property are privileged to consider the registered possessors or owners as still such in spite of loss

Art. 559. The possession of movable property acquired in good faith is equivalent to a title. Nevertheless, one who has lost any movable or has been unlawfully deprived thereof may recover it from the person in possession of the same. If the possessor of a movable lost or which the owner has been unlawfully deprived, has acquired it in good faith at a public sale, the owner cannot obtain its return without reimbursing the price paid therefor. General Rule: possession of personal property acquired in GF = title therefore the true owner cannot recover it Exception: if the true owner lost the movable or has been unlawfully deprived, In either of these, he may recover the personal property not only from the finder but also from those who may have acquired it in GF form such finder or thief, without paying for any indemnity except if possessor acquired it in public sale (here, the possessor in GF is entitled to reimbursement).

(1)
(2)

Rules for Loss of Movables Art. 556. The possession of movables is not deemed lost so long as they remain under the control of the possessor, even though for the time being he may not know their whereabouts.

Public saleis one where there has been a public notice of the sale, in which anybody has a right to bid and offer to buy Requisites for Title: (1) that the possession is in GF 101

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(2) that the owner has voluntarily parted with the possession of the thing (3) that the possessor is in the concept of an owner not become res nullius unless abandoned. (5) Reivindication (accdg to Tolentinos annotation)the most natural mode of losing possession, i.e., recovery or reivindication of the thing by the lawful owner Not in the outline

Unlawful deprivationlimited to unlawful taking such as theft, robbery. should not include disposition through abuse of confidence

the right of the owner to recover personal property acquired in GF by another is based on his being dispossessed without his consent Art. 560. Wild animals are possessed only while they are under one's control; domesticated or tamed animals are considered domestic or tame if they retain the habit of returning to the premises of the possessor. Kinds of animals (a) wild animalslive naturally independent of man; when they recover their freedom (i.e., they escape and no longer in our sight, or we cannot follow them even if in our sight) , they cease to be under possession (b) domesticated or tamedthose which, being wild by nature, have become accustomed to recognize the authority of man; placed in the same category as domestic or wild, depending on WoN they maintain the recognition of the authority of man (c) domestic or tamethose which are born and reared under the control and care of man; they are under the control of man and do

L. Effects of Possession in Good Faith or Bad Faith

Art. 544. A possessor in good faith is entitled to the fruits received before the possession is legally interrupted. Natural and industrial fruits are considered received from the time they are gathered or severed. Civil fruits are deemed to accrue daily and belong to the possessor in good faith in that proportion. Art. 545. If at the time the good faith ceases, there should be any natural or industrial fruits, the possessor shall have a right to a part of the expenses of cultivation, and to a part of the net harvest, both in proportion to the time of the possession. The charges shall be divided on the same basis by the two possessors. The owner of the thing may, should he so desire, give the possessor in good faith the right to finish the cultivation and gathering of the growing fruits, as an indemnity for his part of the expenses of cultivation and the net proceeds; the possessor in good faith who for any reason whatever should refuse to accept this concession, shall lose the right to be indemnified in any other manner.

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Art. 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. Useful expenses shall be refunded only to the possessor in good faith with the same right of retention, the person who has defeated him in the possession having the option of refunding the amount of the expenses or of paying the increase in value which the thing may have acquired by reason thereof. Art. 547. If the useful improvements can be removed without damage to the principal thing, the possessor in good faith may remove them, unless the person who recovers the possession exercises the option under paragraph 2 of the preceding article. Art. 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. Art. 549. The possessor in bad faith shall reimburse the fruits received and those which the legitimate possessor could have received, and shall have a right only to the expenses mentioned in paragraph 1 of Article 546 and in Article 443. The expenses incurred in improvements for pure luxury or mere pleasure shall not be refunded to the possessor in bad faith, but he may remove the objects for which such expenses have been incurred, provided that the thing suffers no injury thereby, and that the lawful possessor does not prefer to retain them by paying the value they may have at the time he enters into possession. Art. 550. The costs of litigation over the property shall be borne by every possessor.

Art. 443. He who receives the fruits has the obligation to pay the expenses made by a third person in their production, gathering, and preservation.
Good Faith Entitled to the fruits while possession is in GF and before legal interruption (Art 544) Bad Faith Must reimburse fruits received or fruits which legitimate possessor could have received (549); Entitled to expenses for production, gathering, and preservation Pending Fruits Entitled to a part of the expenses of cultivation and a part of the network harvest, both proportion to the time of possession (545) Owner may indemnify or allow possessor in GF to finish cultivation and the fruits will be indemnified for his cultivation (545)

Fruits received

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If possessor refuses concession, no indemnity (545) Must share with the legitimate possessor, in proportion to the time of possession Right of reimbursement and retention in the meantime (545) Owners option to reimburse him either for expenses or for increase in value (546) Retention prior to reimbursement (546) Limited right of removal (but should not damage principal and owner does not exercise option of payment of expenses or increase in value) (547) Limited right of removal as above (548)

M. Effects of Recovery of Possession

Same as with GF

Charges

Necessar y Expenses Useful Expenses

Reimburseme nt only

Art. 551. Improvements caused by nature or time shall always insure to the benefit of the person who has succeeded in recovering possession. improvementsinclude all the natural accessions referred to in Arts 457 to 465, and all those which do not depend upon the will of the possessor (e.g., increase in the value caused by widening of streets, construction of road, etc) Art. 553. One who recovers possession shall not be obliged to pay for improvements which have ceased to exist at the time he takes possession of the thing.

No right to reimbursemen t. He also cannot remove improvements even he can do so without injury to the principal thing

the improvements having ceased to exist, the lawful possessor cannot benefit from them.
Limited right of removal (no injury to thing and lawful possessor does not retain by paying for them) (548) Liable WoN due to his fault, negligence, fortuitous event Bears cost

Ornament al Expenses

BUT remember: necessary expenses are not considered as improvements therefore the lawful possessor or owner has to pay for them even if the object for which they were incurred no longer exist

Deteriora tion or Loss

No liability unless due to fraud or negligence after becoming in BF Bears cost

Costs of Litigation

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