Breve descripción de los procesos involucrados

a. Requisites of Good Faith

i. Ostensible title or mode of acquisition

• If its not an ostensible title but a real title, then its ownership.

ii. Vice or defect in the title

• If there was no vice or defect in the title, then its ownership.

• Examples of vice or defect in title 1. Grantor was not the owner

2. Requirements for transmission were not complied with 3. Mistake in the identity of the person

4. Property was not really res nullius

iii. Possessor is ignorant of the vice or defect and must have an honest belief that the thing belongs to him

• Otherwise, it‘s bad faith.

b. Effects of Good Faith i. As to the fruits

1. Fruits already received (Article 544, ¶1)

Art. 544, ¶1. A possessor in good faith is entitled to the fruits received before the possession is legally interrupted.

• Entitled to all the fruits until possession is legally interrupted (i.e. before summons)

2. Fruits still pending (Article 545)

Art. 545. If at the time the good faith ceases, there should be any natural or industrial fruits, the possessor shall have a right to a part of the expenses of cultivation, and to a part of the net harvest, both in proportion to the time of the possession.

The charges shall be divided on the same basis by the two possessors.

The owner of the thing may, should he so desire, give the possessor in good faith the right to finish the cultivation and gathering of the growing

fruits, as an indemnity for his part of the expenses of cultivation and the net proceeds; the possessor in good faith who for any reason whatever should refuse to accept this concession, shall lose the right to be indemnified in any other manner.

• Entitled to pro-rate the fruits already growing when his possession is legally interrupted

• For example, possessor planted crops. It takes the crops 4 months to grow. On the beginning of the 4^th month, summons is served. At the end of the 4^th month, the crops are harvested. Under Article 545, the possessor is entitled to ¾ of the crops since the possessor was in possession for 3 months. However, he also pays ¾ of the expenses.

ii. As to necessary expenses (Article 546, ¶1)

Art. 546, ¶1. Necessary expenses shall be refunded to every possessor; but only the possessor in good faith may retain the thing until he has been reimbursed therefor.

• The possessor in good faith is entitled to a refund of necessary expenses.

• The possessor in good faith may retain the thing until he is reimbursed for necessary expenses.

iii. As to useful expenses (Articles 546, ¶2, 547)

Art. 546, ¶2. Useful expenses shall be refunded only to the possessor in good faith with the same right of retention, the person who has defeated him in the possession having the option of refunding the amount of the expenses or of paying the increase in value which the thing may have acquired by reason thereof.

Art. 547. If the useful improvements can be removed without damage to the principal thing, the possessor in good faith may remove them, unless the person who recovers the possession exercises the option under paragraph 2 of the preceding article.

• The possessor in good faith is entitled to a refund of useful expenses.

• The possessor in good faith may retain the thing until he is reimbursed for useful expenses.

• The other party has the option to 1. Refund the amount of expenses; or

2. Pay the increase in value which the thing may have acquired

• If the useful improvements can be removed without damaging the principal thing, the possessor in good faith may remove them unless the other party wants to keep the useful improvements. In which case, the other party has to exercise the two previous options.

iv. As to ornamental expenses (Article 548)

Art. 548. Expenses for pure luxury or mere pleasure shall not be refunded to the possessor in good faith; but he may remove the ornaments with which he has embellished the principal thing if it suffers no injury thereby, and if his successor in the possession does not prefer to refund the amount expended.

• The possessor in good faith is not entitled to a refund for ornamental expenses.

• But he may remove the ornamental improvements if they do not cause damage to the principal thing.

v. As to prescription (Articles 1132, 1134)

Art. 1132. The ownership of movables prescribes through uninterrupted possession for four years in good faith.

The ownership of personal property also prescribes through uninterrupted possession for eight years, without need of any other condition.

With regard to the right of the owner to recover personal property lost or of which he has been illegally deprived, as well as with respect to movables acquired in a public sale, fair, or market, or from a merchant's store the provisions of articles 559 and 1505 of this Code shall be observed.

Art. 1134. Ownership and other real rights over immovable property are acquired by ordinary prescription through possession of ten years.

• Prescriptive Period:

1. Movables – 4 years 2. Immovables – 10 years

vi. As to liability for deterioration or loss (Article 552, ¶1)

Art. 552. A possessor in good faith shall not be liable for the deterioration or loss of the thing possessed, except in cases in which it is proved that he has acted with fraudulent intent or negligence, after the judicial summons.

• The possessor in good faith is not liable since he thought that he was the owner.

• Once the good faith ceases (i.e. summons served), then the possessor is liable if there was fraudulent intent or negligence.