FILIPINAS COLLEGES , plaintif-appellee, vs. TIMBANG, defendants.

G.R. N. L-!"#!"
TIMBANG, plaintif-appellant vs. BLAS, defendant-appellee.
T$is is an appeal ta%en f&' an &de& f t$e CFI f Manila (a) de*la&in+ t$e
S$e&if,s *e&ti-*ate f sale *ve&in+ a s*$l ./ildin+ sld at p/.li* a/*tin n/ll and
vid /nless 0it$in !1 da2s f&' nti*e f said &de& t$e s/**essf/l .idde&s,
defendants-appellants sp/ses Ma&ia Ga&*ia Ti'.an+ and Ma&*elin Ti'.an+, s$all
pa2 t, appellee Ma&ia Ge&va*i Blas t$e s/' f P1,314.44 t$at t$e sp/ses
Ti'.an+ $ad .id f& t$e ./ildin+ at t$e S$e&if,s sale5 (.) de*la&in+ t$e t$e&
appellee Filipinas Clle+es, In*. 0ne& f "6,14478,"#1,986 /ndivided inte&est in Lt
N. "-a *ve&ed .2 *e&ti-*ate f tile N 61934, n 0$i*$ t$e ./ildin+ sld in t$e
a/*tin sale is sit/ated5 and (*) &de&in+ t$e sale in p/.li* a/*tin f t$e said
/ndivided inte&est f t$e Filipinas Clle+es, In*., in lt N. "-a af&e'entined t
satisf2 t$e /npaid p&tin f t$e :/d+'ent in fav& f appellee Blas and a+ainst
Filipinas Clle+es, In*. in t$e a'/nt f P#,"44.44 'in/s t$e s/' f P1,314.44
'entined in (a) a.ve.
In t$e :/d+'ent f t$e C/&t f Appeals, t$e &espe*tive &i+$ts f t$e liti+ants
$ave .een ad:/di*ated as fll0s; (!) Filipinas Clle+es, In*. 0as de*la&ed t $ave
a*</i&ed t$e &i+$ts f t$e sp/ses Ti'.an+ in and t lt N. "-a 'entined a.ve
and in *nside&atin t$e&ef, Filipinas Clle+es, In*., 0as &de&ed t pa2 t$e sp/ses
Ti'.an+ t$e a'/nt f P!1,#43.94 pl/s s/*$ t$e& a'/nts 0$i*$ said sp/ses
'i+$t $ave paid & $ad t pa2 afte& Fe.&/a&2, !918, t =s%ins and C. In*., a+ent
f t$e >&.an Estates, In*., &i+inal vend& f t$e lt. Filipinas Clle+es, In*. &i+inal
vend& f t$e ttal a'/nt 0it$ t$e */&t 0it$in 94 da2s afte& t$e de*isin s$all
$ave .e*'e -nal. (") Ma&ia Ge&va*i Blas 0as de*la&ed t .e a ./ilde& in +d
fait$ f t$e s*$l ./ildin+ *nst&/*ted n t$e lt in </estin and entitled t .e paid
t$e a'/nt f P!9,444.44 f& t$e sa'e. Filipinas Clle+es, In*., p/&*$ase& f t$e
said ./ildin+ 0as &de&ed t delive& t Blas st*% *e&ti-*ate (E?$. C) f& !4# s$a&es
f Filipinas Clle+es, In*. 0it$ a pa& val/e f P!4,#44.44 and t pa2 Blas t$e s/' f
P#,"44.44 f t$e $/se. (8) In *ase Filipinas Clle+es, In*. failed t depsit t$e val/e
f t$e land, 0$i*$ afte& li</idatin 0as -?ed at P8",#19.86, 0it$in t$e 94-da2 pe&id
set .2 t$e */&t, Filipinas Clle+es 0/ld lse all its &i+$ts t t$e land and t$e
sp/ses Ti'.an+ 0/ld t$en .e*'e t$e 0ne&s t$e&ef. In t$at event/alit2, t$e
Ti'.an+s 0/ld 'a%e %n0n t t$e */&t t$ei& ptin /nde& A&t. 66# f t$e Civil
Cde 0$et$e& t$e2 0/ld app&p&iate t$e ./ildin+ in </estin, in 0$i*$ even t$e2
0/ld $ave t pa2 Filipinas Clle+es, In*. t$e s/' f P!9,444.44, & 0/ld *'pel
t$e latte& t a*</i&e t$e land and pa2 t$e p&i*e t$e&ef.
Appellant *ntended t$at .e*a/se t$e ./ilde& in +d fait$ $as failed t pa2
t$e p&i*e f t$e land afte& t$e 0ne&s t$e&ef e?e&*ised t$ei& ptin /nde& A&ti*le
66# f t$e Civil Cde, t$e ./ilde& lst $is &i+$t f &etentin p&vided in A&ti*le 16@
and .2 pe&atin f A&ti*le 661, t$e appellants as 0ne&s f t$e land a/t'ati*all2
.e*a'e t$e 0ne&s ipso facto, t$e e?e*/tin sale f t$e $/se in t$ei& fav& 0as
s/pe&A//s. Cnse</entl2, t$e2 a&e nt ./nd t 'a%e +d t$ei& .id f P1,314.44
as t$at 0/ld .e t 'a%e +ds t pa2 f& t$ei& 0n p&pe&t2. B2 t$e sa'e t%en,
Blas *lai' f& p&efe&en*e n a**/nt f t$e /npaid .alan*e f t$e p/&*$ase p&i*e f
KF
t$e $/se des nt appl2 .e*a/se p&efe&en*e applies nl2 0it$ &espe*t t t$e
p&pe&t2 f t$e de.t&, and t$e Ti'.an+s, 0ne&s f t$e $/se, a&e nt t$e de.t&s
f Blas.
ISSUES/RULING:
(1) Suppose that the owner of the land should avail himself of the 2
nd
remedy
provided for in Art 448- compelling the builder in good faith to pay the value
of the land- but such builder fails to pay, does he become automatically the
owner of the building
>nde& A&ts 66# and 16@, t$e 0ne& f t$e land $as t$e &i+$t t *$se
.et0een app&p&iatin+ t$e ./ildin+ .2 &ei'./&sin+ t$e ./ilde& f t$e val/e t$e&ef
& *'pellin+ t$e ./ilde& in +d fait$ t pa2 f& $is land. Even t$is se*nd &i+$t
*annt .e e?e&*ised if t$e val/e f t$e land is *nside&a.l2 '&e t$an t$at f t$e
./ildin+. In additin t t$e &i+$t f t$e ./ilde& t .e paid t$e val/e f $is
i'p&ve'ent, A&ti*le 16@ +ives $i' t$e *&lla&2 &i+$t f &etentin f t$e p&pe&t2
/ntil $e is inde'ni-ed .2 t$e 0ne& f t$e land. T$e&e is nt$in+ in t$e lan+/a+e f
t$ese t0 a&ti*le, 66# and 16@, 0$i*$ 0/ld :/stif2 t$e *n*l/sin f appellants
t$at, /pn t$e fail/&e f t$e ./ilde& B pa2 t$e val/e f t$e land, 0$en s/*$ is
de'anded .2 t$e land-0ne&, t$e latte& .e*'es a/t'ati*all2 t$e 0ne& f t$e
i'p&ve'ent /nde& A&ti*le 661.
!2" #hat then is the remedy left to the owner of the land if the builder fails to
pay
C$e&e t$e ./ilde& in +d fait$ fails t pa2 t$e val/e f t$e land 0$en s/*$ is
de'anded .2 t$e land0ne&, t$e pa&ties 'a2 &es&t t; (a) $arties may decide to
leave things as they are and assume the relation of lessor and lessee, and should
they disagree as to the amount of rental then they can go to the court to %& that
amount. (.) S$/ld t$e pa&ties nt a+&ee t leave t$in+s as t$e2 a&e and t ass/'e
t$e &elatin f less& and lessee, t$e 0ne& f t$e land in entitled t $ave t$e
i'p&ve'ent &e'ved 0$en afte& $avin+ *$sen t sell $is land t t$e t$e& pa&t2,
i.e., t$e ./ilde& in +d fait$ fails t pa2 f& t$e sa'e. (*) T$e land and t$e
i'p&ve'ent 'a2 .e sld at p/.li* a/*tin appl2in+ t$e p&*eeds t$e&ef -&st t
t$e pa2'ent f t$e val/e f t$e land and t$e e?*ess, if an2, t .e delive&ed t t$e
0ne& f t$e $/se in pa2'ent t$e&ef.
(3) 'he appellants , owners o the land, instead of electing any of the alternative
above indicated chose to see( recovery of the value of their land by as(ing for a
writ of e&ecution) levying on the house of the builder) and selling the same in
public auction with the owner as highest bidder, what is the e*ect upon the
rights of the parties
C$en t$e&e is a *lai' .2 a t$i&d-pa&t2, t t$e p&*eeds f t$e sale s/pe&i& t
$is :/d+'ent *&edit, t$e e?e*/tin *&edit&, as s/**essf/l .idde&, '/st pa2 in *as$
t$e a'/nt f $is .id as a *nditin p&e*edent t t$e iss/an*e t $i' f t$e
*e&ti-*ate f sale. In t$e instant *ase, t$e C/&t f Appeals $as al&ead2 ad:/d+ed
t$at appellee Blas is entitled t t$e pa2'ent f t$e /npaid .alan*e f t$e p/&*$ase
KF
p&i*e f t$e s*$l ./ildin+. Blas is a*t/all2 a lien n t$e s*$l ./ildin+ a&e
*n*e&ned. T$e &de& f t$e l0e& */&t di&e*tin+ t$e Ti'.an+ sp/ses, as
s/**essf/l .idde&s, t pa2 in *as$ t$e a'/nt f t$ei& .id in t$e s/' f P1,314.44 is
t$e&ef&e *&&e*t. Cit$ &espe*t t t$e &de& f t$e */&t de*la&in+ appellee Filipinas
Clle+es, In*. pa&t 0ne& f t$e land t t$e e?tent f t$e val/e f its pe&snal
p&pe&ties sld at p/.li* a/*tin in fav& f t$e Ti'.an+, t$is C/&t Li%e0ise -nds
t$e sa'e as :/sti-ed, f& s/*$ a'/nt &ep&esents, in efe*t, a pa&tial pa2'ent f t$e
val/e f t$e land. If t$is &es/lted in t$e *ntin/atin f t$e s-*alled invl/nta&2
pa&tne&s$ip </estined .2 t$e dife&en*e .et0een P#,"44.44 D t$e /npaid .alan*e
f t$e p/&*$ase p&i*e f t$e ./ildin+ and t$e s/' f P1,314.44 D a'/nt t .e paid
.2 t$e Ti'.an+s, t$e &de& f t$e */&t di&e*tin+ t$e sale f s/*$ /ndivided inte&est
f t$e Filipinas Clle+es, In*. is li%e0ise :/sti-ed t satisf2 t$e *lai' f t$e appellee
Blas.
T$e -&st pa&t f t$e dispsitive p&tin f t$e &de& appealed f&' is 'di-ed
in t$e sense t$at /pn fail/&e f t$e Ti'.an+ sp/ses t pa2 t t$e S$e&if & t
Manila Ge&va*i Blas said s/' f P1,314.44 0it$in -fteen (!1) da2s f&' nti*e f
t$e -nal :/d+'ent, an &de& f e?e*/tin s$all iss/e in fav& f Ma&ia Ge&vasi Blas
t .e levied /pn all p&pe&ties f t$e Ti'.an+ sp/ses nt e?e'pt f&' e?e*/tin
f& t$e satisfa*tin f t$e said a'/n In all t$e& &espe*ts, t$e appealed &de& f
t$e */&t a +uo is $e&e.2 aE&'ed, 0it$ *sts a+ainst t$e appellants.
KF