B.H.

BERKENKOTTER, plaintiff-appellant,
vs.
CU UNJIENG E HIJOS, YEK TONG LIN FIRE AND MARINE INSURANCE
COMPANY, MABALACAT SUGAR COMPANY AND THE PROVINCE
SHERIFF OF PAMPANGA, defendants-appellees
G.R. No. L-41643, J!" 31, 1#3$, V%!!&-'(&!, J.:
FACTS)

This is an appeal by the plaintiff from the judgment of the Court of
First Instance, dismissing said plaintiffs complaint against Cu
njieng e !ijos et al.
"n #pril $%, &'$% (abalacat )ugar Company *()C+ o,ner of the
sugar central obtained a loan from the defendants, Cu njieng e
!ijos, secured by a mortgage constituted on t,o parcels of land
-,ith all its buildings, improvements, sugar-cane mill, steel rail,ay,
telephone line, apparatus, utensils and ,hatever forms part or is
necessary complement of said sugar-cane mill, no, e.isting or that
may in the future e.ist in said lots/.
"n "ctober 0, &'$%, shortly after said mortgage had been
constituted, the ()C decided to increase the capacity of its sugar
central by buying additional machinery and e1uipment, so that
instead of milling &02 tons daily, it could produce $02.
The ()C as3ed 4.!. 4er3en3otter, plaintiff, to advance the
necessary amount for the purchase of said machinery and
e1uipment and promising the plaintiff to reimburse him as soon as
the ()C could obtain an additional loan from the defendants Cu
njieng. 5laintiff accepted the proposal. 6ith the money from the
plaintiff, the ()C ,as able to buy the additional machinery and
e1uipment.
The ()C applied to Cu njieng for an additional loan of 570,222
offering as security the additional machinery and e1uipment
ac1uired and installed in the sugar central after the e.ecution of the
original mortgage deed. The ()C failed to obtain said loan.
The plaintiff contends that the installation of the machinery and
e1uipment claimed by him in the sugar central of ()C ,as not
permanent in character inasmuch as the ()C in proposing to him to
advance the money for the purchase thereof, made it appear that in
case the ()C failed to obtain a loan from the defendant Cu njieng,
said machinery and e1uipment ,ould become security therefor.
()C binds itself not to mortgage nor encumber them to anybody
until said plaintiff be fully reimbursed.
ISSUE*HELD) 6hether or not the additional machinery and e1uipment, as
improvement incorporated ,ith the sugar central are subject to the mortgage
deed e.ecuted in favor of the defendants Cu njieng e !ijos. YES.
RATIO)
#rt &877 of the Civil Code provides that a mortgage includes all
natural accessions, improvements, gro,ing fruits .....
It is a rule established by the Civil Code that in a mortgage of real
estate, the improvements on the same are included: therefore all
objects permanently attached to a mortgaged building or land,
although they may have been placed there after the mortgage ,as
constituted, are also included.
The installation of the machinery and e1uipment in 1uestion
converted them into real property by reason of their purpose. )aid
machineries are essential and principal elements of a sugar central,
,ithout them the sugar central ,ould be unable to function or carry
on the industrial purpose for ,hich it ,as established.
In order that other objects placed upon and used in connection ,ith
a mortgage estate are e.cluded from the mortgage, it is
indispensable that the e.clusion thereof be stipulated bet,een the
contracting parties.
The fact that the ()C bound itself to the plaintiff to hold said
machinery and e1uipment as security for the payment and to refrain
from mortgaging or other,ise encumbering them until the plaintiff
has been fully reimbursed is not incompatible ,ith the permanent
character of the incorporation of said machinery and e1uipment ,ith
the sugar central.
The )C affirmed the decision of the trial court.
*5.). yung facts ng case ,alang binangit about sa case na finile sa trial court
and details ng controversy. para mas maintindihan niyo yung case, read niyo
full te.t, mai3li lang naman+