Article 447-455 (Good Faith, Bad Faith)

Case 1: Landowners is the Builder, Planter, Sower (BPS) using material of another

Landowner and BPS Owner of Material

Good faith Good faith
 Right to acquire the improvements after paying  Limited right of removal if there would be no
the value of materials. injury to work constructed, or without plantings or
constructions being destroyed. (Article 447)
 Right to receive payment for value of materials
Bad faith Good faith
 Acquire BPS after paying its value and paying  Right to receive payment for value of materials
indemnity for damages (Article 447) but subject to  Absolute right of removal of the work
OM’s right to remove constructed in any event  Right to be indemnified
for damages
Good faith Bad faith
 Right to acquire the improvements without  Lose materials without right to indemnity
paying indemnity
 Right to acquire indemnity for damages if there
are hidden defects known to OM
Bad faith Bad faith
 Same as though acted in good faith under Article  Same as though acted in good faith under Article
453 453

Case 2: BPS builds, plants, or sows on another’s land using his own materials

Landowner BPS and Owner of Material

Good faith Good faith
 Landowner has option to:  BPS has right to retain (right of retention) the
a. Acquire the improvement after paying land until the payment of indemnity
indemnity which may be the original cost of NOTE: During this period BPS is not required to pay
improvement OR increase in value of the whole rent.
brought about by the improvement
b. Sell the land to the BP or collect rent from
sower UNLESS value of land is more than the thing
built, planted or sown or BP shall pay rent fixed by
parties or by the court in case of disagreement.
NOTE: Landowner can be forced to choose under
pain of direct contempt or court can choose for
him.
Good faith Bad faith
 Landowner has right to collect damages in any  Pay damages to landowner
case and option to:  BPS lose materials without right to indemnity
a. Acquire improvements without paying  No right to refuse to buy the land
indemnity if the improvements are still standing  Recover necessary expenses for preservation of
on the land land
b. Sell the land to BP or collect rent from the
sower unless value of the improvements in which
case there will be a forced lease
c. Order demolition of improvements or
restoration o0f land to its former condition at the
expense of the BPS
 Landowner must pay for necessary expenses for
preservation
Bad faith Good faith
 Landowner must indemnify BPS for the  BPS has right to :
improvements and pay damages as if he himself a.) Be indemnified for damages
did the BPS b.) Remove all improvements in any event
 Landowner has no option to sell the land and
cannot compel BPS to buy the land unless BPS
agrees to
Bad faith Bad faith
 Same as though acted in good faith under Article  Same as though acted in good faith under Article
453 453

Case 3: BPS builds, plants or sows on another’s land with materials owned by third persons

Landowner BPS Owner of Material

Good faith
 Right to acquire improvements
and pay indemnity to BPS;
subsdiarily liable to OM
 Has option to:
a. Sell land to BP except if the
value of the land is considerably
more
b. Rent to sower
Good faith
 Right to acquire improvements
and pay indemnity to BPS
 Has option to:
a. Sell land to BPS except if the
value of the land is considerably
more
b. Rent to sower
 Without subsidiarily liability for
cost of materials
Good faith
 Landowner has right to collect
damages in any case and option
to:
a. Acquire improvements w/o
Good faith
 Right of retention until
necessary and useful expenses
are paid
 Pay value of materials to OM
Good faith
 Right of retention until
necessary and useful expenses
are paid.
 Keep BPS without indemnity to
OM and collect damages from
him
Bad faith
 Recover necessary expenses
for preservation of land from
landowner unless landowner
sells land
Good faith
 Collect value of material
primarily from BPS and
subsidiarily liable for landowner
if BPS is insolvent
 Limited right of removal
Bad faith
 Lose the material without right
to indemnity
 Must pay for damages to BPS
Bad faith
 Recover value from BPS (as if
both are in good faith)
 If BPS acquires improvement,
remove materials if feasible w/o
paying for indemnity; or
b. Demolition or restoration; or
c. Sell to BPS, or to rent to sower
 Pay necessary expenses to BPS
Bad faith
 Same as when all acted in
good faith under Article 453
Bad faith
 Acquire improvement after
paying indemnity and damages
to BPS unless latter decides to
remove
 Subsidiarily liable to OM for
value of materials
Bad faith
 Acquire improvements after
indemnity; subsidiarily liable to
OM for value of materials
 Has option to:
a. Sell the land to BP except if
the value of the land is
considerably more
b. Rent to sower
Good faith
 Acquire improvement after
paying indemnity; subsidiarily
liable to OM
 Landowner has option to:
a. Sell land to BP except if value
of land is considerably more
b. Rent to sower
Bad faith
 Acquire improvements and pay
indemnity and damages to BPS
unless latter decides to remove
materials
Bad faith
 Same as when all acted in
good faith under Article 453
Good faith
 May remove improvements
 Be indemnified for damages in
any event
Bad faith
 Right of retention until
necessary expenses are paid
 Pay value of materials to OM
and pay him damages
Bad faith
 Right of retention until
necessary expenses are paid
 Pay value of materials to OM
 Pay damages to OM
Good faith
 Receive indemnity for damages
 Absolute right of removal of
improvements in any event
injury
 No action against landowner
but liable to landowner for
damages
Bad faith
 Same as when all acted in
good faith under Article 453
Good faith
 Remove materials if possible
w/o injury
 Collect value of materials from
BPS; subsidiarily from landowner
Good faith
 Collect value of materials
primarily from BPS and
subsidiarily from landowner
 Collect damages from BPS
 If BPS acquires improvements,
remove materials in any event
Good faith
 Collect value of materials
primarily from BPS and
subsidiarily from landowner
 Collect damages from BPS
 If BPS acquires improvements,
absolute right of removal in any
event
Bad faith
 No right to indemnity
 Loses right to material