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C. Accession

1. Right to hidden treasure

a. CONCEPT

By treasure is understood, for legal purposes, any hidden and unknown deposit of money, jewelry, or other precious objects, the lawful ownership of which does not appear.(Article 439, Ibid.)

b. TO OWNER OF THE LAND, BUILDING, OR PROPERTY

Hidden treasure belongs to the owner of the land, building, or other property on which it is found. (Article 483, Civil Code)

c. IF DISCOVERED ON PROPERTY OF ANOTHER, OR OF THE STATE OR ANY OF ITS SUBDIVISIONS, AND BY CHANCE

Nevertheless, when the discovery is made on the property of another, or of the State or any of its subdivisions, and by chance, one-half thereof shall be allowed to the finder. (Paragraph 2, Article 483, Ibid.)

1) If finder is a trespasser

If the finder is a trespasser, he shall not be entitled to any share of the treasure.(Ibid.)

2) If things are of interest to science of the arts

If the things found be of interest to science of the arts, the State may acquire them at their just price, which shall be divided in conformity with the rule stated. (Paragraph 3, Article 483, Ibid.)

2. Rules of accession

a. CONCEPT

The ownership of property gives the right by accession to everything which is produced thereby, or which is incorporated or attached thereto, either naturally or artificially. (Article 440, Ibid.)

To the owner belongs:

1) The natural fruits;

2) The industrial fruits;

3) The civil fruits. (Article 441, Ibid.)

b. FRUITS

1) Natural fruits

Natural fruits are the spontaneous products of the soil, and the young and other products of animals. (Article 442, Ibid.)

Only such as are manifest or born are considered as natural fruits.(Article 444, Ibid.)

With respect to animals, it is sufficient that they are in the womb of the mother, although unborn.(Paragraph 2, Article 444, Ibid.)

2) Industrial fruits

Only such as are manifest or born are considered industrial fruits.(Article 444, Ibid.)

Industrial fruits are those produced by lands of any kind through cultivation or labor. (Paragraph 2, Article 442, Ibid.)

3) Civil fruits

Civil fruits are the rents of buildings, the price of leases of lands and other property and the amount of perpetual or life annuities or other similar income. (Paragraph 3, Article 442, Ibid.)

c. OBLIGATION TO PAY THIRD PERSON

He who receives the fruits has the obligation to pay the expenses made by a third person in their production, gathering, and preservation. (Article 443, Ibid.)

a. For immovables

1) Concept and nature

Whatever is built, planted or sown on the land of another and the improvements or repairs made thereon, belong to the owner of the land, subject to the following rules. (Article 445, Ibid.)

2) Presumption favors owner

All works, sowing, and planting are presumed made by the owner and at his expense, unless the contrary is proved. (Article 446, Ibid.)

3) Landowner + Materials Owner

a) Good faith on landowner

The owner of the land who makes thereon, personally or through another, plantings, constructions or works with the materials of another, shall pay their value. (Article 447, Ibid.)

The owner of the materials shall have the right to remove them only in case he can do so without injury to the work constructed, or without the plantings, constructions or works being destroyed. (Article 447, Ibid.)

b) Bad faith on landowner

If he acted in bad faith, he shall also be obliged to the reparation of damages. (Article 447, Ibid.)

On removing landowner’s plantings, constructions, or works with the materials of another: If the landowner acted in bad faith, the owner of the materials may remove them in any event, with a right to be indemnified for damages. (Article 447, Ibid.)

4) Builder + Landowner

a) Good faith, both on builder and landowner

The owner of the land on which anything has been built, sown or planted in good faith, shall have the right to appropriate as his own the works, sowing or planting, after payment of the indemnity provided for in Articles 546 and 548, or to oblige the one who built or planted to pay the price of the land, and the one who sowed, the proper rent. (Article 448, Ibid.)

However, the builder or planter cannot be obliged to buy the land if its value is considerably more than that of the building or trees. In such case, he shall pay reasonable rent, if the owner of the land does not choose to appropriate the building or trees after proper indemnity. The parties shall agree upon the terms of the lease and in case of disagreement, the court shall fix the terms thereof. (Article 448, Ibid.)

b) Bad faith on builder

He who builds, plants or sows in bad faith on the land of another, loses what is built, planted or sown without right to indemnity. (Article 449, Ibid.)

The owner of the land on which anything has been built, planted or sown in bad faith may demand the demolition of the work, or that the planting or sowing be removed, in order to replace things in their former condition at the expense of the person who built, planted or sowed; or he may compel the builder or planter to pay the price of the land, and the sower the proper rent. (Article 450, Ibid.)

In the cases of the two preceding articles, the landowner is entitled to damages from the builder, planter or sower.(Article 451, Ibid.)

The builder, planter or sower in bad faith is entitled to reimbursement for the necessary expenses of preservation of the land.(Article 452, Ibid.)

c) Bad faith, on both builder and landowner

If there was bad faith, not only on the part of the person who built, planted or sowed on the land of another, but also on the part of the owner of such land, the rights of one and the other shall be the same as though both had acted in good faith. (Article 453, Ibid.)

It is understood that there is bad faith on the part of the landowner whenever the act was done with his knowledge and without opposition on his part. (Paragraph 2, Article 450, Ibid.)

d) Bad faith on landowner, good faith on builder

When the landowner acted in bad faith and the builder, planter or sower proceeded in good faith, the provisions of article 447 shall apply. (Article 454, Ibid.)

If the landowner acted in bad faith, he shall also be obliged to the reparation of damages. (Article 447, Ibid.)

On removing landowner’s plantings, constructions, or works made by a builder: If the landowner acted in bad faith, the owner of the materials may remove them in any event, with a right to be indemnified for damages. (Article 447, Ibid.)

5) Materials owner

a) No bad faith on materials owner

If the materials, plants or seeds belong to a third person who has not acted in bad faith, the owner of the land shall answer subsidiarily for their value and only in the event that the one who made use of them has no property with which to pay.(Article 455, Ibid.)

This provision shall not apply if the owner makes use of the right granted by article 450. If the owner of the materials, plants or seeds has been paid by the builder, planter or sower, the latter may demand from the landowner the value of the materials and labor. (Paragraph 2, Article 455, Ibid.)

In the cases regulated in the preceding articles, good faith does not necessarily exclude negligence, which gives right to damages under article 2176.(Article 456, Ibid.)

6) Adjoining landowners

a) Lands adjoining banks of rivers

To the owners of lands adjoining the banks of rivers belong the accretion which they gradually receive from the effects of the current of the waters. (Article 457, Ibid.)

b) Lands adjoining ponds or lagoons

The owners of estates adjoining ponds or lagoons do not acquire the land left dry by the natural decrease of the waters, or lose that inundated by them in extraordinary floods. (Article 458, Ibid.)

c) Segregated land due to current or torrent

Whenever the current of a river, creek or torrent segregates from an estate on its bank a known portion of land and transfers it to another estate, the owner of the land to which the segregated portion belonged retains the ownership of it, provided that he removes the same within two years.(Article 459, Ibid.)

d) Trees uprooted and carried away by current

Trees uprooted and carried away by the current of the waters belong to the owner of the land upon which they may be cast, if the owners do not claim them within six months. If such owners claim them, they shall pay the expenses incurred in gathering them or putting them in a safe place. (Article 460, Ibid.)

e) Riverbeds

River beds which are abandoned through the natural change in the course of the waters ipso facto belong to the owners whose lands are occupied by the new course in proportion to the area lost. However, the owners of the lands adjoining the old bed shall have the right to acquire the same by paying the value thereof, which value shall not exceed the value of the area occupied by the new bed.(Article 461, Ibid.)

Whenever a river, changing its course by natural causes, opens a new bed through a private estate, this bed shall become of public dominion. (Article 462, Ibid.)

f) Islands

(1) Due to river divide

Whenever the current of a river divides itself into branches, leaving a piece of land or part thereof isolated, the owner of the land retains his ownership. He also retains it if a portion of land is separated from the estate by the current.(Article 463, Ibid.)

(2) Non-navigable, non-floatable rivers

Islands which through successive accumulation of alluvial deposits are formed in non-navigable and non-floatable rivers, belong to the owners of the margins or banks nearest to each of them, or to the owners of both margins if the island is in the middle of the river, in which case it shall be divided longitudinally in halves. If a single island thus formed be more distant from one margin than from the other, the owner of the nearer margin shall be the sole owner thereof. (Article 465, Ibid.)

(3) Formed on the seas

Islands which may be formed on the seas within the jurisdiction of the Philippines, on lakes, and on navigable or floatable rivers belong to the State. (Article 464, Ibid.)

b. For movables

1) Concept

Whenever two movable things belonging to different owners are, without bad faith, united in such a way that they form a single object, the owner of the principal thing acquires the accessory, indemnifying the former owner thereof for its value. (Article 466, Ibid.)

a) Principal thing

The principal thing, as between two things incorporated, is deemed to be that to which the other has been united as an ornament, or for its use or perfection. (Article 467, Ibid.)

If it cannot be determined by the rule given in the preceding article which of the two things incorporated is the principal one, the thing of the greater value shall be so considered, and as between two things of equal value, that of the greater volume. (Article 468, Ibid.)

In painting and sculpture, writings, printed matter, engraving and lithographs, the board, metal, stone, canvas, paper or parchment shall be deemed the accessory thing. (Paragraph 2, Article 468, Ibid.)

b) Separation

Whenever the things united can be separated without injury, their respective owners may demand their separation.(Article 469, Ibid.)

Nevertheless, in case the thing united for the use, embellishment or perfection of the other, is much more precious than the principal thing, the owner of the former may demand its separation, even though the thing to which it has been incorporated may suffer some injury. (Paragraph 2, Article 469, Ibid.)

2) Principal owner + Accessory owner

a) Bad faith on accessory owner

Whenever the owner of the accessory thing has made the incorporation in bad faith, he shall lose the thing incorporated and shall have the obligation to indemnify the owner of the principal thing for the damages he may have suffered. (Article 470, Ibid.)

b) Bad faith on principal owner

If the one who has acted in bad faith is the owner of the principal thing, the owner of the accessory thing shall have a right to choose between the former paying him its value or that the thing belonging to him be separated, even though for this purpose it be necessary to destroy the principal thing; and in both cases, furthermore, there shall be indemnity for damages. (Paragraph 2, Article 470, Ibid.)

c) No bad faith on both accessory and principal owners

If either one of the owners has made the incorporation with the knowledge and without the objection of the other, their respective rights shall be determined as though both acted in good faith. (Paragraph 3, Article 470, Ibid.)

3) Materials owner

Whenever the owner of the material employed without his consent has a right to an indemnity, he may demand that this consist in the delivery of a thing equal in kind and value, and in all other respects, to that employed, or else in the price thereof, according to expert appraisal. (Article 471, Ibid.)

4) Mixture

a) By will of owners or by chance

If by the will of their owners two things of the same or different kinds are mixed, or if the mixture occurs by chance, and in the latter case the things are not separable without injury, each owner shall acquire a right proportional to the part belonging to him, bearing in mind the value of the things mixed or confused. (Article 472, Ibid.)

b) By will of only one owner in god faith

If by the will of only one owner, but in good faith, two things of the same or different kinds are mixed or confused, the rights of the owners shall be determined by the provisions of the preceding article. (Article 473, Ibid.)

c) Bad faith on who caused the mixture or confusion

If the one who caused the mixture or confusion acted in bad faith, he shall lose the thing belonging to him thus mixed or confused, besides being obliged to pay indemnity for the damages caused to the owner of the other thing with which his own was mixed. (Paragraph 2, Article 473, Ibid.)

5) Creation, transformation

a) Good faith on maker

(1) To maker

One who in good faith employs the material of another in whole or in part in order to make a thing of a different kind, shall appropriate the thing thus transformed as his own, indemnifying the owner of the material for its value. (Article 474, Ibid.)

(2) To materials owner

If the material is more precious than the transformed thing or is of more value, its owner may, at his option, appropriate the new thing to himself, after first paying indemnity for the value of the work, or demand indemnity for the material. (Paragraph 2, Article 474, Ibid.)

b) Bad faith on maker

If in the making of the thing bad faith intervened, the owner of the material shall have the right to appropriate the work to himself without paying anything to the maker, or to demand of the latter that he indemnify him for the value of the material and the damages he may have suffered. However, the owner of the material cannot appropriate the work in case the value of the latter, for artistic or scientific reasons, is considerably more than that of the material. (Paragraph 2, Article 474, Ibid.)

6) Sentimental value of movable

In the preceding articles, sentimental value shall be duly appreciated. (Article 475, Ibid.)

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