LOPEZ v.

OROSA
Felix, J.
Batangas
1958
FACTS:
*
Enrique Lopez (fr Balayan, Batangas) does business under the trade name of Lopez-Castelo Sawmill
*
Vicente Orosa Jr. convinced Lopez to invest in the formers theatre business (Plaza Theatre, Inc.)
*
Lopez (hesitantly) supplied lumber for construction of theatre, with Orosa making himself personally
liable
*
Total cost: P62,255.85; paid only P20,848.50
*
Plaza Theatre was erected on land (679.17 sq m) formerly owned by Orosa, now owned by
corporation (acquired for 6K)
*
Orosa and Belarmino Rustia (president of corp) promised to obtain bank loan by mortgaging
properties of Plaza Theatre in order to pay balance of P41,771.35
*
HOWEVER, property was already mortgaged to Philippine national Bank with Luzon Surety Company
as surety (for a P30K loan); land and bldg. were mortgaged in favor of Luzon Surety
*
Land was not yet under Torrens System, so mortgage was registered under Act no 3344. So when
land was registered under Act 496, mortgage was not revealed in Original Certificate of Title
*
Orosa executed deed of assignment of 420 shares of stock of PTI (420 shares, PV 100), but oblig
remained unsettled
*
Lopez filed complaint praying that he be solidarily pd (by Orosa and PTI) and in case of failure to
pay, the building and land (take note OCT of land does not state encumbrance) owned by
corporation be sold at public auction and proceeds applied to debt (or that shares of stock assigned
be sold to apply to debt).
*
Luzon Surety discovered the notice of lis pendens on land, filed petition to annotate its rights and
interest over properties
*
Lopez opposed: amt demanded by him constituted a preferred lien over the properties
*
Lower court held that Orosa and PTI jointly liable for unpd balance of cost of lumber used in
construction of bldg. and thus Lopez acquired MATERIALMANs lien ove the BUILDING only, land not
included
o
Reason: when lopez delivered lumber, land was not yet owned by corporation
ISSUES
1. Whether a materialmans lien for value of materials used in construction of bldg. attaches to bldg.
alone and does not extend to land. BLDG ONLY
2. WON lien is superior to mortgage in favor of Luzon Surety not only on bldg. but also on land. LAND
ONLY
HELD:
Lien: bldg. only, not land. Interest of mortgagee over land is SUPERIOR and cannot be made subject to lien
Lopez invokes A1923 of Spanish CC:
With respect to determinate RP and RR of debtor, the ff are preferred:
Credits for refection, not entered or recorded, with respect to the real estate upon which refection was
made
Court disagrees.
While generally, real estate connotes land and bldg., it is obvious that the inclusion of the bldg., separate
and distinct from the land in the enumeration of what may constitute real properties (in A415 par 1 of NCC),
could mean only one thing that the bldg. is by itself an immovable, irrespective of WON said structure and
land belong to the same owner
-Liean only attaches for construction or repair of whih obligation was incurred. Therfore, lien in favor of
Lopez was for the unpd value of lumber used in construction of bldg. attaches only to bldg..
-Therefore, land cannot be made subject to materialmans lien