GR L 4529; (December, 1952) (Digest)
G.R. No. L-4529 December 29, 1952
VICENTE M. COLEONGCO, petitioner, vs. PEDRO F. REGALADO and LEONOR MONTILLA, respondents.
FACTS
Prior to September 1944, Pedro F. Regalado owned a lot (Lot No. 157) in Bacolod, Negros Occidental, with a house erected on it. In September 1944, Regalado sold the lot to Vicente M. Coleongco, who became the registered owner. Coleongco claimed the house was included in the sale, but Regalado occupied the house after American forces vacated it post-liberation. Coleongco filed Civil Case No. 185 to claim ownership of the house, but the Court of First Instance declared Regalado the owner on March 21, 1947. Coleongco’s appeal was later declared abandoned, making the decision final. On July 21, 1947, Coleongco filed the present ejectment action (Civil Case No. 718) to compel Regalado to vacate the lot, remove the house, and pay rentals. On September 20, 1947, Regalado sold the house to Leonor Montilla, who was aware of the pending case and assumed its obligations. The trial court ordered defendants to pay monthly rentals from September 1945 and to remove the house within two months. Both defendants appealed to the Court of Appeals, which affirmed the rental award but reversed the removal order, instructing the lower court to allow Coleongco to exercise his option under Article 361 of the old Civil Code. Coleongco elevated the case to the Supreme Court.
ISSUE
Whether Article 361 of the old Civil Code (regarding rights of accession) applies to a situation where a person constructs a building on his own land and later sells the land but retains ownership of the building.
RULING
No. The Supreme Court modified the decision of the Court of Appeals. Article 361 of the old Civil Code applies only when a person builds on the land of another, in good or bad faith. It does not apply where, as here, Regalado built the house on his own land before selling the land to Coleongco. Since Regalado retained ownership of the house (as finally adjudicated in Civil Case No. 185), he or his successor Montilla must remove the house from Coleongco’s lot without any compensation from Coleongco. The Court affirmed the award of monthly rentals to Coleongco from September 1945, as upheld by the Court of Appeals, but reversed the portion applying Article 361. Regalado and Montilla were ordered to remove the house without Coleongco being obligated to pay compensation. Costs were awarded against respondents.