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Chapter III: Right of Accession 28 July 2009
A. Concept
Art 440 The ownership of property gives the right by accession to everything which is produced
thereby, or which is incorporated or attached thereto, either naturally or artificially.
Definition of Accession
• TOLENTINO: Right by virtue of which the owner of a thing becomes the owner of everything
that the thing may produce or which may be inseparably united or incorporated thereto, either
naturally or principally.
• JBL REYES: Extension of ownership over a thing to whatever is incorporated thereto naturally
or artificially (without or with labor of man)
○ Incorporation means a stable union or adherence, not mere juxtaposition
○ Accession is one of the bundle of rights of ownership and is not a mode of acquiring
property
○ It does not depend upon a new title
C. Kinds of Accession
HELD: The stock dividend is a form of income. The SC cited Hite vs. Hite wherein the Court of Appeals of
Kentucky, held that "where a dividend, although declared in stock, is based upon the earnings of the company, it
is in reality, whether called by one name or another, the income of the capital invested in it. In the present case;
the 108,000 shares of stock are part of the property in usufruct. The 54,000 shares of stock dividend are civil
fruits of the original investment.
2 Camille Maranan
3 According to my legal dictionary, a remainder is a future estate and a remainderman is the inchoate
possessor of that future estate
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In My Understanding: The widow is saying that the stock dividend should be transferred to her account since
this form part of the income of the estate and since she is the usufructuary, she has the right over such income.
On the other hand, the legal heirs/ remainderman (or men) are contending that the stock dividend is part of the
capital and should be delivered to them (together with the rest of the estate upon Mary’s death). The court held
that stock dividends form part of the income and therefore, should be delivered to the usufructuary (the widow).
4 Doms Obias
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1. Accession Continua
Art 440 The ownership of property gives the right by accession to everything which is
produced thereby…
• Acquisition of ownership over a thing incorporated to that which belongs to the owner
• May refer to immovables (alluvion, force of river, change of river bed, formation of
islands and BPS) or to movables (conjunction/adjunction, specification, commixtion,
confusion)
• Based on necessity and utility: It being more practical that the owner of the principal
thing should own the new things instead of a co-ownership being established.
a. Over Immovables
ISSUE: WON DEFENDANT BATACLAN IS STILL ENTITLED TO RECOVER THE COURT MANDATED
COMPENSATION ARISING FROM THE SALE OF THE PROPERTY TO TORIBIO
HELD: NO. The defendant avers that “he is a possessor in good faith and that the amount of P2,212 to
which he is entitled has not yet been paid to him.” Defendant further claims that he has a right to retain
the land in accordance with the provisions of article 453 of the Civil Code. While the said argument is legally
tenable, the same must perforce be denied because defendant Bataclan has lost his right of retention as he
failed to pay for the land. “The law, as we have already said, requires no more than that the owner of
5 Phoebe Hidalgo
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the land should choose between indemnifying the owner of the improvements or requiring the latter
to pay for the land”.
2. Option of the landowner to pay for the building or sell his land to the owner of the building; Right
of remotion only available if he chose the latter and the owner of the building cannot pay
The owner of the land, upon the other hand, has the option, under article 361, either to pay for the building or to
sell his land to the owner of the building. Article 361 provides that “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 price of the land, and the one who sowed, the proper rent.” He cannot however 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
is 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.
4. Original decision did not become final as it failed to determine the value of the buildings and of
the lot; and the time to which the option may be exercised
In the decision of Judge Felix, the rights of both parties were well defined under articles 361 and 453 of the Civil
Code, but it failed to determine the value of the buildings and of the lot where they are erected as well as the
periods of time within which the option may be exercised and payment should be made, these particulars having
been left for determination apparently after the judgment has become final. The procedure is erroneous, for after
the judgment has become final, no additions can be made thereto and nothing can be done therewith except its
execution. And execution cannot be had, the sheriff being ignorant as to how, for how much, and within what
time may the option be exercised, and certainty no authority is vested in him to settle these matters which
involve exercise of judicial discretion. Thus, the judgment rendered by Judge Felix has never become final, it
having left matters to be settled for its completion in a subsequent proceeding, matters which remained
unsettled up to the time the petition is filed in the present case.
6 Obet Bunagan
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Issue: WON petitioner is entitled to fruits while Comintan and Zamora have yet to pay the indemnity due
petitioner.
Decision: NO.
• Before possession is legally interrupted, possessor in good faith is entitled to fruits. This right ceases
upon defects being known. This is known as a right to retention, for the creditor to obtain payment of a
debt.
• Also we must consider that tolls were collected from portions with no improvements of petitioner,
therefore he really has no right to said fruits.
GEMINIANO v CA ()11
PLEASANTVILLE DEV’T CORP v CA ()12
FACTS
• Edith Robillo purchased a parcel of land, Lot 9, from Pleasantville Dev’t Corporation in Pleasantville
Subdivision, Bacolod City. Eldred Jardinico bought the rights to the lot from Robillo. At that time, Lot 9
was vacant.
• Upon completing all 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 CT Torres Enterprises Inc (CTTEI), the real estate
agent of Pleasantville.
• Under the Contract to Sell, Kee could and did possess the lot even before the completion of payments.
• Zenaida Octaviano, CTTEI’s employee, was the one who mistakenly pointed out Lot 9 (instead of Lot 8) to
Kee’s wife. Thereafter, Kee built his residence, a store, an auto repair shop, and other improvements on
the lot.
• Jardinico confronted Kee after discovering that the latter was occupying Lot 9. Kee refused to vacate,
hence Jardinico filed an ejectment suit with damages.
RTC: Kee is a builder in bad faith. Assuming arguendo that Kee was acting in good faith, he was nonetheless
guilty of unlawfully usurping the possessory right of Jardinico over Lot 9 from the time he was served with
notice to vacate said lot, and was thus liable for rental.
CA: Kee was a builder in good faith, as he was unaware of the “mix-up” when he began construction of the
improvements. The erroneous delivery was due to the fault of CTTEI and thus imputable to Pleasantville, the
principal.
7 Grace Lazaro
8 Aris Mascenon
9 Vams Villar
10 Mark Yam
11 Krissy Conti
12 Nessa Abad
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HELD/RATIO:
• 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 9, Kee believed 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.
• Violation of the Contract of Sale on Installment may not be the basis to negate the presumption that Kee was
a builder in good faith. Such violations have no bearing whatsoever on whether Kee was a builder in good
faith, that is, on his state of mind at the time he built the improvements on Lot 9. These alleged violations
may give rise to petitioner’s cause of action against Kee under the said contract (contractual breach) but
may not be bases to negate the presumption that Kee was a builder in good faith.
Case 1: Pecson challenged the validity of the auction sale. SC: Sps. Nuguid owned the lot, while Pecson still
owned the building (May 5, 1993).
Case 2: Nuguids sought delivery of possession of the lot and apartment building, i.e., they want to acquire the
building. SC (Nov. 15, 1993):
1. Art. 448, NCC: Case is apposite as when the landowner is the BPS who then later loses ownership through
sale;
2. Current market value of the building should be the basis of the indemnity;
3. Pecson entitled to retain ownership of the building and the income therefrom;
4. CA erred in upholding TC’s determination of indemnity (P53,000.00 construction cost) and in also
ordering Pecson to account for rent.
5. Remanded to TC for determination of CMV.
Case 3 (Case at bar): CMV = P400,000. Pecson already received P300,000 from Sps. Nuguid; balance of P100,000
paid thereafter. TC directed Sps. Nuguid to also pay P1.34 million for rentals from Nov. 1993 to Dec. 1997 (@
P28K/mo.) Thus, petition.
ISSUE: W/N the spouses should pay rent collected during period of Pecson’s dispossession of the building? YES.
HELD:
• Pecson is a builder in good faith. Nuguid is the landowner.
• Art. 448, NCC entitles landowner (Nuguid) to either appropriate the building upon payment of indemnity or
sell the land. Nuguid sought appropriation.
• Art. 546, NCC entitles the BPS to full reimbursement for all the necessary and useful expenses, and the right
of retention until full reimbursement is made.
• However, until the payment of indemnity is full, the BPS (Pecson) has a RIGHT of RETENTION (which includes
the right to the expenses and the right to the fruits) as a builder in good faith. Thus, he cannot be compelled
to pay rentals during the period of retention nor be disturbed in his possession by ordering him to vacate.
The landowner is prohibited from offsetting or compensating the necessary and useful expenses with the
fruits received by the BPS in good faith.
2) Natural
13 Chi Santos
14 Jessa Alvarez
15 Rory Lambino
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a. Alluvium
REPUBLIC v CA ()16
GRANDE v CA (1962; Barrera)17
Facts:
– Grande siblings are the owners of a parcel of land, with an area of 3.5032 hectares, located at barrio
Ragan, Magsaysay (formerly Tumauini), Isabela by inheritance from their deceased mother Patricia Angui
who in turn inherited it from her parents Isidro Angui and Ana Lopez, in whose name the land is
registered. When it was surveyed for purposes of registration, sometime in 1930, its northeastern
boundary was the Cagayan River. Since then, and for many years thereafter, a gradual accretion on the
northeastern side took place, by action of the said river, so much, so that by 1958, the bank thereof had
receded t a distance of about 105 meters from its original site, and an alluvial deposite of 19,964 sq.
meters more or less had been added to the registered land. On Jan. 25, 1958, the siblings instituted a
case to quiet title against private respondent Calalungs and alleged that they were in former peaceful
possession of said alluvial deposit when respondents encroached the land claiming ownership.
– The trial court ruled in favor of the Grandes ratiocinating that, by accession the land in question pertains
to the original estate, and since the original estate is registered, the accretion consequently is
automatically registered too. There can also be no acquisitive prescription in favor of the Calalungs since
the land is already registered. The action to claim land by the owners which is registered is
imprescriptible. Upon appeal, the Court of Appeals reversed the ruling of the trial court thus this appeal
by the Grandes.
Issue:
– WON the accretion becomes automatically registered land just because the lot which receives it is
covered by a Torrens title thereby making said land imprescriptible.
– WON respondents have acquired the alluvial property in question through prescription.
MENESES (1995;)18
a. Avulsion
BAES v CA (1995;)20
BINALAY v MANALO (1995;)21
16 Victor Villanueva
17 Angel Paglicawan
18 Unassigned
19 Nathan Marasigan
20 Krystel Bautista
21 Iani Lauron
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c. Formation of Islands
d. Reverse accession
a. Over movables
HELD: YES.
• the rule provides that real property shall "be levied on in like manner and with like effect as under an
order of attachment" (Section 14, Rule 39), and the provision regarding attachment of real property
postulates that the attachment shall be made "by filing with the register of deeds a copy of the order,
together with the description of the property attached, and a notice that it is attached, and by leaving a
copy of said order, description, and notice with the occupant of the property, if any there be," and that
"Where the property has been brought under the operation of the Land Registration Act, the notice shall
contain a reference to the number of the certificate of title and the volume and page in the registration
book where the certificate is registered"
• These provisions should be strictly construed if their purpose has to be accomplished. The requirement
that the notice of levy should contain a reference to the number of the certificate of title and the volume
and page in the registration book where the certificate is registered is made in order that the debtor as
well as a third person may be properly informed of the particular land or property that is under the
custody of the court.
• Since the notice of levy made by the sheriff as regards parcel number 1 which is a registered land
contains no reference to the number of its certificate of title and the volume and page in the registry
book where the title is registered, it follows that said notice is legally ineffective and as such did not have
the effect of binding the property for purposes of execution. Consequently, the sale carried out by virtue
of said levy is also invalid and of no legal effect
22 Ixara Maroto
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ISSUE: W/N Tiongson and Santos are entitled to recover the part belonging to each?
HELD/RATIO: YES. Art 381 of the CC prescribes that “if by will of their owners, two things of identical or
dissimilar nature are mixed, or if the mixture occurs accidentally, if in the later case the things cannot be
separated without injury, each owner shall acquire a right in the mixture proportionate to the part belonging to
him, according o the value of the things mixed or commingled.”
In the present case, since the number of kilos in a cavan has not been determined, only of the 924 cavans of
palay which were attached and sold shall be distributed proportionately between Santos (398.49 cavans) and
Tiongson (525.52 cavans) or the value thereof at the rate of P3/cavan.
DISPOSITIVE: Tiongson ordered to pay the value of 398.49 cavans at P3/cavan to Santos.
1) Specification
23 Micha Arias
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1 Because Prof. Labitag remembers cases by location