DAVAO SAW MILL CO V. CASTILLO Light).

The INTENTION to make the character of the

NO. 40411 peroprties personal is considered.
AUGUST 7, 1935
MALCOLM, J. The distinction rests, as pointed out by Demolombe, upon
Vicky Em | Group 8 the fact that one only having a temporary right to the
possession or enjoyment of property is not presumed by
PETITONERS/appellant: Davao Saw Mill Co., Inc the law to have applied movable property belonging to him
RESPONDENTS/appellee: Aproniano G. Castillo and Davao Light & so as to deprive him of it by causing it by an act of
Power Co., Inc, defendants and appellees. immobilization to become the property of another.

Machinery which is movable in its nature only becomes

TOPIC: (as stated in the syllabus)
Movable or Personal Properties
CASE SUMMARY: Davao Sawmill leased a building where they used
machines for their business. They mounted the machines on
foundations of cement. The company also entered into a contract
with the landowners which stipulated that once the lease expires, all
the improvements and buildings introduced and erected by the party
of the second part [lessor] shall pass to the exclusive owvership to
the party of the first part [lesee] ,because of the that, the main issue
of the case involves classifying as machines personal or real
property.
TERMS: n/a no unfamiliar terms
PRECEDENTS: n/a
FACTS:
Davao Sawmill operates a sawmill in the sitio of Maa, barrio of
Tigatu. However, the land where the company conducts
busines is owned by another person. The company erected a a
building which housed their machinery on this land.
immobilized when placed in a plant by the owner of the
property or plant, but not when so placed by a tenant, a
usufructuary, or any person having only a temporary right,
unless such person acted as the agent of the owner.
DISPOSITIVE PORTION:Judgement affirmed
PROVISIONS:
Article 334, paragraphs 1 and 5, of the Civil Code states that
real property consists of-
1. Land, buildings, roads and constructions of all kinds adhereing to
the soil;
5. Machinery, liquid containers, instruments or implements intended by
the owner of any building or land for use in connection with any
industry or trade being carried on therein and which are expressly
adapted to meet the requirements of such trade or industry
section 334 of the Porto Rican Code, Things may be immovable either
by their own nature or by their destination or the object to which
they are applicable.'

The lease contract between the company and the landowner

states: "That on the expiration of the period agreed upon,
all the improvements and buildings introduced and erected
by the party of the second part shall pass to the exclusive
ownership of the party of the first part without any obligation
on its part to pay any amount for said improvements and
buildings; also, in the event the party of the second part should
leave or abandon the land leased before the time herein
stipulated, the improvements and buildings shall likewise pass
to the ownership of the party of the first part asthough the time
agreed upon had expired: Provided, however, That the
machineries and accessories are not included in the
improvements which will pass to the party of the first part on
the expiration or abandonment of the land leased.

In another action, Davao Light and Power Co was the plaintiff

and Davao Saw Mill was defendant and the judgement favored
the plaintiff. A writ of execution was rendered against Saw Mill
and the properties in question were levied upon by the sherriff.
Davao Light was a bidder in the auction and took possession of
the properties.
ISSUES:

Does the machinery placed and mounted on the

foundations of cement constitute personal property?

RULING:
1st Issue: affirmed
Davao Saw Mill on multiple occastions treated the
machinery as personal property by executing chattel
mortgages in favor of 3rd persons (which includes Davao