SCENARIO 1. The Landowner is the Builder, Planter and Sower using material of another.

Landowner is the Builder, Planter and Sower (LO + BPS)

Owner of the Material (OM)
Good Faith
Good Faith
Since both acted in good faith the principal (landowner + builder) has the Since both acted in good faith the OM may demand as long as no
first right to choose a remedy:
damages will be incurred:
1. Appropriate/ acquire improvements but reimburse the cost of
1. Right to be indemnified (paid) for the value of the materials; (Art.
materials to the OM. (Art. 447)
447)
(No person shall unjustly enrich himself at the expense of
2. Limited right of removal if there would be no injury to work
another.)
constructed, or without plantings or constructions being
destroyed. (Art. 447)
Legal effect: Since he is responsible for the attachment or incorporation
and having acted in good faith, he is exonerated from punitive liability
and damages. (Art. 447)
Bad Faith (BOTH)
Since both acted in bad faith it follows the rule as though both acted in good faith (Art. 453)
(The bad faith of one party is neutralized by the bad faith of the other, therefore both should be considered as having acted in good faith.)
Bad Faith
Since LO acted in bad faith he is obliged to:
1. Indemnify (pay) OM for the value of the materials; (Art. 447)
2. Indemnify (pay) OM for damages; (Art. 447)

Good Faith
Since OM acted in good faith he has the first right to choose remedy:
1. Right to be indemnified (paid) for the value of the materials; (Art.
447)
2. Right to be indemnified for damages; (Art. 447)
Legal effect: Having acted in bad faith LO shall also suffer the other
3. Absolute right of remove/retrieve of the work constructed, in
unfavorable consequences of his act. (whatever OM chooses)
any event. (Art. 447)
Good Faith
Bad Faith
Since LO acted in good faith the principal (land owner + builder) has the Since OM acted in bad faith he has:
first right to choose a remedy:
1. Loses his material without any right to indemnity; (Art. 449)
1. Appropriate/ acquire improvements without paying indemnity for
2. Liable to the land owner for damages.
the cost of materials to the OM; (Art. 449)
2. Right to be indemnified for damages.

SCENARIO 2. The Builder, Planter and Sower using his own material, plants, build or sows at the Land of Another.

Landowner (LO)
Good Faith
Since both acted in good faith, a conflict of rights arises (state of
forced co-ownership). It is necessary to protect the owner of the
improvements (OM) without causing injustice to the owner of the land.

Builder, Planter and Sower is the Owner of the Material (BPS + OM)
Good Faith
Since both acted in good faith the Builder, Planter, and Sower and the
Owner of the Material
1. Right to be indemnified (paid) for the value of the materials and
cost of labor; (Art. 448) *if LO insolvent Right to retention
(non-payment of rent pending reimbursement)
2. He cannot be compelled to buy the land but instead pay
reasonable rent.

The owner of the land choses the first option because his right is older
and by the principle of accession he is entitled of the ownership of the
accessory thing (the accessory follows the principal): (HE MUST
CHOOSE ONE, otherwise the COURT WILL FIX IT)
1. Appropriate/ acquire improvements after paying indemnity;
2. Sell the land to BP (unless the value of the land is considerably
greater than the improvements forced lease) or collect rent
from the sower (Art 448)
*if BP/OM is insolvent remedy of remotion (removal of the
improvement)
remedy of retention (as is where is)
Bad Faith (BOTH)
Since both acted in bad faith it follows the rule as though both acted in good faith (Art. 453)
(The bad faith of one party is neutralized by the bad faith of the other, therefore both should be considered as having acted in good faith.)

Bad Faith
Good Faith
Since LO acted in bad faith he is obliged to:
Since BPS/OM acted in good faith he has the first right to choose
1. Indemnify (pay) OM for the value of the materials; (*Art.447 )
remedy:
2. Indemnify (pay) OM for damages; (*Art. 447)
1. Right to be indemnified (paid) for the value of the materials and
3. Landowner has no option to sell the land and cannot compel
cost of labor; (*Art. 447)
BPS/OM to buy the land.
2. Absolute right of remove/retrieve of the work constructed, in
any event, even if it will damage the property (except sower);
(*Art. 447)
3. Right to buy the land for BP and non-payment rental for Sower
until harvest.
*All options has a RIGHT to be indemnified for damages;
(*Art. 447)
2

Good Faith
Bad Faith
Since LO acted in good faith the principal (land owner) has the first Since BPS/OM acted in bad faith he has:
right to choose a remedy:
1. Loses improvements without any right to indemnity; (Art. 449)
1. Appropriate/ acquire improvements (built, planted or sown)
2. Entitled to reimbursement of necessary expenses in
without paying indemnity for the cost of materials and labor to
preservation of the land;
BPS/OM; (Art. 449)
3. No right to remove or demolish the improvements;
2. Order demolition of improvements or restoration of lands to its
4. Liable to the land owner for damages.
former condition at the expense of the BPS/OM.(Art 450) (right
of remotion)
3. Compel BP/OM to pay the price of the land (EVEN IF the value
of the land is considerably greater than the improvements
forced lease) or collect rent from the sower; (Art. 451)
*All options has a RIGHT to be indemnified for damages;

*Except when the owner of the materials is the sower

SCENARIO 3. The Builder, Planter and Sower plants, build or sows at the Land of Another using material of another.

Landowner
Good Faith
Since all acted in good faith, owner of the land choses the first
option because his right is older and by the principle of
accession he is entitled of the ownership of the accessory thing
(the accessory follows the principal)::
1. Right to appropriate/ acquire improvements and pay
indemnity to BPS; subsidiary liable to OM for value of
materials.
2. OPTION TO:
A. Sell land to BP except if the value of land is
considerably more;
B. Rent to sower
*no damages incurred
Good Faith
1. Right to appropriate/ acquire improvements and pay
indemnity to BPS;
2. OPTION TO:
A. Sell land to BP except if the value of land is
considerably more; then FORCED LEASE;
B. Rent to sower
*Without subsidiary liable to OM for value of materials.
Good Faith
1. Right to appropriate/ acquire improvements without
indemnity;
2. Demolition or restoration;
3. A. Sell land to BP except if the value of land is
considerably more; then FORCED LEASE;
B. Rent to sower
*All options has a RIGHT to be indemnified for damages.
*Pay necessary expenses to BPS in preservation of the land

Builder, Planter and Sower

Good Faith
1. Right of retention until
necessary and useful
expenses are paid;
2. Pay value of the
materials to OM
*no damages incurred

Owner of the Material

Good Faith
1. Collect value of material primarily from
BPS and if BPS is insolvent
landowner is subsidiary liable;
2. Limited right of removal if there would
be no injury to work constructed, or
without plantings or constructions being
destroyed.
*no damages incurred

Good Faith
1. Right of retention until
necessary and useful
expenses are paid;
2. Keep BPS without
indemnity to OM and
collect damages from
him

Bad Faith
1. Lose the material without right to
indemnity
2. Must pay damages to BPS

Bad Faith
1. Entitled
to
reimbursement
of
necessary expenses in
preservation of the
land;

Bad Faith
1. Collect value of material primarily from
BPS and if BPS is insolvent
landowner is subsidiary liable (except
when landowner acted in bad faith
wherein he becomes PRIMARILY
LIABLE ;