GARVIDA

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INDUSTRIAL ACCESSION

RULES WHEN:
1. The landowner builds, plants or sows on his own land;
2. But uses materials belonging to another.
LANDOWNER (LO) WHO IS THE BUILDER, OWNER OF THE MATERIALS (OM)
PLANTER, OR SOWER (BPS)
1ST CASE
Good Faith Good Faith
1. LO can appropriate what he has built, 1. Receive indemnity for the value of the
planted, or sown. materials
2. Having acted in good faith, he is not liable 2. OM may demand for the removal and return
for damages of the materials, if there is no accession
3. However, he must pay the value of the
materials, otherwise he would be enriching
himself unjustly at the expense of OM
4. LO may, instead of appropriating the
materials and paying for their value, return
the materials to OM, IF the materials can be
returned to the latter in exactly the same
form and substance and without causing
injury to the land because in such a case,
there is no accession1
2nd CASE
Bad Faith Good Faith
1. Having acted in bad faith LO becomes liable Options of either:
for damages and other favorable 1. Demanding for the value of the materials,
consequences. with a right to be indemnified for damages;
2. May still acquire the materials2 after paying: or
a. The value of the materials 2. Demanding for the removal of the materials
b. Indemnity for damages (subject to the “in any event” — even if it will cause injury
preferred right of OM to remove) to the land or to the materials — with a right
to be indemnified for damages.3
3rd CASE
Good Faith Bad Faith
1. Acquire the materials without paying 3. Loses the materials without right to be
indemnity indemnified
2. Demand for damages 4. Liable for damages
4 CASE
th
Bad Faith Bad Faith
Following the principle that the bad faith of one party neutralizes the bad faith of the other and, therefore,
both should be considered as having acted in good faith, the legal effects discussed in the 1st case apply.


















1 There is accession only when the accessory thing (the materials) is inseparably attached or incorporated to the land in such a way that it loses its
form or substance or cannot be separated from the land without causing destruction to the land or to the materials.

2 Subject to the preferred right of OM to remove

3 This is to be without prejudice to the criminal liability of the landowner for the unlawful taking and use of the materials of another without the
latter’s knowledge and consent.
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RULES when:
1. A person builds, plants or sows on another’s land;
2. But he makes use of materials belonging to him.
LANDOWNER (LO) BUILDER, PLANTER, OR SOWER (BPS) WHO IS
THE OWNER OF THE MATERIALS (OM)
1 CASE
ST
Good Faith Good Faith
The options are given to the LO, either to:
4 1. May compel LO to make a choice;
1. Appropriate as his own the works, sowing, 2. If LO chooses to appropriate, BUILDER has
or planting AFTER payment to the BPS the the right to be indemnified of the value of
necessary and useful expenses and, in
5 the improvements introduced on the land.
proper cases, expenses for pure luxury or 3. Right of retention in case LO chooses to
mere pleasure, incurred by the latter; or appropriate
2. Oblige:
a. The one who BUILT or PLANTED to pay
the price of the land, if the value of the
land is NOT considerably more than
that of the building or trees (in which
case BP shall pay rent); and
b. The one who SOWED to pay the proper
rent
2nd CASE
Bad Faith Good Faith
1. LO must indemnify BPS for the 3. Demand the value of his materials and
improvements and pay damages, unless BPS reasonable compensation for his labor, plus
chooses to remove; damages; or
2. Cannot compel BPS to buy the land 4. Demand the return of the materials in any
event, plus damages
3rd CASE
Good Faith Bad Faith
1. LO may exercise the following options, 1. Lose the improvements and plants without
alternatively: right without right to be indemnified
A. Appropriate whatever has been built, 2. Recover necessary expenses for
planted or sown in bad faith, without preservation of land
need of paying indemnity, plus damages. 3. Pay damages to LO
6

B. Right to demand the demolition of

whatever has been built, planted, or
sown in bad faith in any event, plus
damages


C. Right to (i) compel the builder or the
planter in bad faith to pay the price of
the land—even if the price of the land is
considerably more than that of the
building and trees—plus damages; or
(ii) demand rent from the sower.
2. Pay BPS necessary expenses for
preservation
4 CASE
th
Bad Faith Bad Faith
Following the principle that the bad faith of one party neutralizes the bad faith of the other and, therefore,
both should be considered as having acted in good faith, the legal effects discussed in the 1st case apply.




4 LO cannot refuse to exercise either option and compel instead the owner of the building or improvement to remove it from the land. The remedy of
remotion is available only if and when the owner of the land chooses to compel the builder to buy the land at a reasonable price but the latter fails to pay such
price.

5 …provided for in Articles 546 and 548 of the NCC.

6 If there are pending fruits LO will likewise be entitled to appropriate them without need of paying indemnity. However, with respect to fruits
that have already been received by BPS or could have been received by LO, the latter is obliged to pay the expenses incurred by BPS in bad faith in the
“production, gathering, and preservation of the fruits,” upon the return of the BPS in bad faith of the value of said fruits to LO.

 GARVIDA | 3
RULES WHEN:
1. A person builds, plants or sows;
2. On another’s land;
3. But he makes use of materials belonging to another.
LANDOWNER (LO) BUILDER, PLANTER OR SOWER OWNER OF THE MATERIALS (OM)
(BPS)
1st CASE
Good Faith Good Faith Good Faith
1. Acquire the improvements after 1. Right of retention until 1. Collect the value of the
payment of indemnity to BPS and payment of indemnity for materials primarily from BPS
be subsidiarily liable to OM for the necessary and useful and subsidiarily from LO, if
value of the materials expenses the former is insolvent
2. Option to 2. Primarily liable to pay value 2. Remove materials only if he
A. Sell the land to BP, except if its of the materials to OM can without injury
value is considerably more
B. Acquire rentals from S
2nd CASE
Good Faith Good Faith Bad Faith
1. Option to: 1. Right of retention for 1. Lose materials without right
A. Acquire improvements and pay necessary and useful to indemnity
indemnity to BPS expenses 2. Pay damages
B. Either sell the land to BP, 2. Keep building, etc. without
except if its value is indemnity to OM and collect
considerably more; then forced damages from him
lease, or acquire rentals from S
2. Without subsidiary liability for cost
of materials
3RD CASE
Good Faith Bad Faith Bad Faith
1. Option to 1. Recover Necessary expenses 1. Recover value from BPS (in
A. Acquire improvements without for land preservation pari delicto)
paying indemnity and collect 2. Loses improvements without 2. If BPS acquired
damages right to indemnity from LO, improvements, remove
B. Demolition/restoration plus unless LO sells the land materials if possible without
damages injury
C. Sell to BP or collect rent from D, 3. No action against LO and may
plus damages in either be liable for damages
2. Pay necessary expenses to BPS
4TH CASE
Bad Faith Bad Faith Bad Faith
Following the principle that the bad faith of one party neutralizes the bad faith of the other and, therefore, both should be
considered as having acted in good faith, the legal effects discussed in the 1st case apply.
5TH CASE
Bad Faith Good Faith Good Faith
1. Acquire improvements after paying 1. Remove improvements 1. Remove materials if possible
indemnity and damages to BPS, 2. Be indemnified for damages without injury
unless the latter decides to remove in any event 2. Collect value of materials
2. Subsidiarily liable to OM for primarily from BPS;
materials subsidiarily from LO
6TH CASE
Bad Faith Bad Faith Good Faith
1. Acquire improvements after 1. Right of retention for 1. Collect value of materials
indemnity necessary expenses primarily from BPS;
2. Subsidiarily liable to OM for 2. Pay value of materials to OM subsidiarily from LO
materials and pay him damages 2. Collect damages
3. Option to 3. If BPS acquired
A. Sell to BP except if value of land improvements, remove
is considerably more materials
B. Rent to S
7TH CASE
Good Faith Bad Faith Good Faith
1. Option to: 1. Recover necessary expenses 1. Collect value of materials
A. Acquire without paying 2. Loses improvements without primarily from BPS, or
indemnity and collect damages right of indemnity from LO, subsidiarily from LO, without
B. Sell to BP or rent to S, and unless LO sells the land damages
collect damages 3. Loses right of retention 2. Remove materials in any
C. Demolish/restore, and collect 4. Pay damages to LO event if BPS acquired
damages 5. Primarily liable to pay value materials
2. Pay necessary expenses to BPS of materials, plus damages
3. Subsidiarily liable to OM, without
damages
8TH CASE
Bad Faith Good Faith Bad Faith
Acquire improvements and pay indemnity 1. Indemnity for damages 1. No indemnity
and damages to BPS, unless the latter 2. Remove improvements in any 2. Loses materials
decides to remove event

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ADJUNCTION

OWNER OF PRINCIPAL (OP) OWNER OF ACCESSORY (OA)
1ST CASE
Good Faith Good Faith
1. If separation is not possible without injury 1. If separation is not possible without injury
GR: OP acquires the accessory GR: OA is entitled to reimbursement
XPN: If the accessory is more precious, his XPN: If the accessory is more precious, he
right to retain the accessory is subject to the can demand separation
right of OA 2. If separation is possible without damage, OA
2. If separation is possible without damage, OP can demand separation of the accessory
can demand for separation
2 CASE
nd
Bad Faith Good Faith
1. He is liable for damages 1. The right to claim damages
2. His right to retain is subject to the superior 2. The right to demand removal even if there is
right of OA to ask for removal injury
3rd CASE
Good Faith Bad Faith
1. Right to retain the accessory 1. He loses the accessory
2. Right to claim damages 2. He is liable for damages
4 CASE
th
Bad Faith Bad Faith
Following the principle that the bad faith of one party neutralizes the bad faith of the other and,
therefore, both should be considered as having acted in good faith, the legal effects discussed in the 1st
case apply.



COMMIXTION (SOLIDS) AND CONFUSION (LIQUIDS)
Rules

The agreement of the parties governs their right to the mixture.
In the absence of agreement, each owner acquires an interest in proportion to the value of his
material if:
a. mixture is by will of both owners; or
b. mixture is the result of accident and/or both are in good faith
IF ONE IS IN BAD FAITH,
a. He loses all his rights to his own materials
b. He is liable for damages

SPECIFICATION

MAKER (M) OWNER OF THE MATERIALS (OM)
[The one who applied labor]
1ST CASE
Good Faith Good Faith
GR: GR:
1. He retains the material 1. OA is entitled to reimbursement
2. He must indemnify OM XPN: If the material is more valuable than the resulting
XPN: If the material is more valuable than the resulting thing— he can either:
thing—his rights in No. 1 is subject to the superior right of 1. Acquire the resulting thing subject to payment to M
OM for the value of labor; OR
2. Demand reimbursement for value of the materials
2nd CASE
Bad Faith Good Faith
1. He is liable for damages 1. Right to claim payment for the value of the materials,
2. His right to retain is subject to the superior right of plus damages; OR
OM to retain the resulting thing 2. The right to claim the resulting thing WITHOUT
indemnity
3rd CASE
Good Faith Bad Faith
1. Right to retain the accessory 1. He loses the accessory
2. Right to claim damages 2. He is liable for damages
4th CASE
Bad Faith Bad Faith
Following the principle that the bad faith of one party neutralizes the bad faith of the other and, therefore, both should be
considered as having acted in good faith, the legal effects discussed in the 1st case apply.