General Rule: Possession cannot be recognized in two different personalities, except in cases of co-possession by co- possessors without conflict of claims or interest.
In case of conflicting possession – preference is given to:
(1) Present possessor or actual possessor; (2) If there are two or more possessors, the
one longer in possession;
(3) If the dates of possession are the same, the one who presents a title; or
(4) If all conditions are equal, the thing shall be placed in judicial deposit pending determination of possession or ownership through proper proceedings.
G. EFFECTS OF POSSESSION
G.1. RIGHTS OF A POSSESSOR IN GOOD FAITH
(1) Right to be protected and respected in possession; (NCC 539)
(2) Right to bring action to restore possession;
(3) Right to the fruits already received; (4) (NCC. 544)
(5) At the time good faith possession ceases, he has the right to a part of cultivation expenses and to a part of net fruits in proportion to time of possession (NCC. 545)
(6) Right to necessary expenses; (NCC. 546) (7) Right to retain the thing until
reimbursed; (NCC. 546)
(8) Right to remove useful improvements removable without damage to the principal thing or to refund its value; (upon election by the owner) (NCC. 547)
PAGE 122 OF 574 (9) Right to recover removable ornaments
unless owner opts to buy them (NCC.
548)
G.2. OBLIGATIONS OF A POSSESSOR IN GOOD FAITH
(1) Pay in proportion to the charges, expenses of cultivation and the net proceeds upon cessation of good faith;
(NCC 545)
The owner of the thing may 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 refuses to accept this concession shall lose the right to be indemnified in any other manner.
(2) Costs of litigation; (NCC 550)
(3) Liability to the deterioration/loss of a thing possessed if acted through fraudulent intent/negligence after the judicial summons. (NCC 552)
G.3. RIGHTS OF A POSSESSOR IN BAD FAITH
(1) Right to be respected in possession;
(NCC 539)
(2) Right to necessary expenses and the expenses for production, gathering, and preservation of fruits; (NCC. 545 and
546)
Does not have right to reimbursement of expenses for luxury but may remove them as long as the principal thing suffers no injury, or may sell them to the owner who opts to buy the removable ornaments.
No right to reimbursement for useful improvements and no limited right of removal.
G.4. OBLIGATIONS OF A POSSESSOR IN BAD FAITH
Reimburse the value of fruits received and which the legitimate possessor could receive; (NCC 549)
Pay in proportion to the charges, expenses of cultivation and the net proceeds upon cessation of good faith; (NCC 545)
Costs of litigation; (NCC 550)
Liability to the deterioration/loss of a thing possessed in every case, including fortuitous events. (NCC 552)
G.5. RIGHT TO BE PROTECTED IN HIS POSSESSION [NCC 539]
Every possessor has a right to be respected in his possession; if disturbed, possessor has a right to be protected in or restored to said possession.
“Every possessor” includes all kinds of possession, from that of an owner to that of a mere holder, except that which constitutes a crime
Reason for the rule: To prevent anyone from taking the administration of justice into his own hands. Even the owner cannot forcibly eject the possessor, but must resort to the courts.
RULES
(1) Lawful possessor can employ self-help (NCC 429)
(2) To consolidate title by prescription, the possession must be under claim of ownership, and it must be peaceful, public and uninterrupted.
(3) Acts of possessory character done by virtue of a license or mere tolerance by the real owner are not sufficient and will not confer title by prescription or adverse possession.
(a) Possession of real property presumes possession of the movables therein (NCC 542);
(b) Each co-owner is deemed to have exclusive possession of the part which may be allotted to him upon the
PAGE 123 OF 574 division, for the entire period during
which the co-possession lasted. (4) Interruption in the possession of the
whole or a part of a thing possessed in common shall be to the prejudice of all the possessors. (NCC 543)
H. REIMBURSEMENT FOR EXPENSES
– POSSESSOR IN GOOD/BAD FAITH
[NCC 546-552]
H.1. NECESSARY EXPENSES
(1) Imposed by the thing itself for its preservation and has no relation to the desire or purpose of the possessor. (2) They are the “cost of living” for the thing
and must be reimbursed to the one who paid them, irrespective of GF or BF. Only the possessor in GF may retain the thing until he has been reimbursed therefor.
(3) The expenses are not considered improvements; they do not increase the value of the thing, but merely prevent them from becoming useless.
(4) A possessor in bad faith is entitled to reimbursement for necessary expenses but without right of retention.
H.2. USEFUL EXPENSES
Incurred to give greater utility or productivity to the thing, e.g. Wall surrounding an estate, an irrigation system, planting in an uncultivated land, a fishpond, an elevator in the building, electric lighting system
They are reimbursed only to the possessor in GF as a compensation or reward for him. A possessor in BF cannot recover such expenses.
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 refunds the expenses or pays the
increase in value which the thing may have acquired by reason thereof.
Bad faith possessor has no limited right of removal.
H.3. EXPENSES FOR LUXURY
They do not affect the existence or the substance of the thing itself, but only the comfort, convenience or enjoyment of the possessor.
They are not the subject of reimbursement, because the law does not compensate personal whims or caprices, e.g. Opening of a garden, placing fountains and statues in it, adorning the ceilings with paintings, and the walls with reliefs.
Bad faith possessor has no right of reimbursement but has limited right of removal, where owner has the option to buy removable ornament.
Notes
(1) Costs of litigation over the property shall be borne by every possessor. [NCC 550] (2) Improvements caused by nature or time
shall always inure to the benefit of the person who has succeeded in recovering possession [NCC 551]
Includes all the natural accessions referred to by articles 457-465, and all those that do not depend upon the will of the possessor. (e.g. widening of the streets, rising of fountains of fresh or mineral water, increase of foliage of trees)
Possessor in GF Possessor in BF
Fruits Received Entitled to the fruits
while possession is in GF and before legal interruption (544)
Must reimburse the legitimate possessor for fruits received or could have been received, less expenses under Art. 443 (549)
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Possessor in GF Possessor in BF
Pending Fruits Entitled to part of the
expenses of
cultivation, and to a part of the net harvest, in proportion to the time of the possession.
Indemnity may be, at the owner’s option, 1. In money, OR 2. By allowing full cultivation and gathering of the fruits (545) Goes to the legitimate possessor who recovers possession (549) Charges Must share with the legitimate possessor, in proportion to the time of the possession (545) Same as with GF (545) Necessary Expenses Right to reimbursement and retention in the meantime (546) Reimbursement only (546) Useful Expenses Right of retention until reimbursed; Owner’s option to reimburse him either for expenses or for increase in value which the thing may have acquired (546) Limited right of removal – should not damage principal and owner does not exercise option of paying the expenses or increase in value (547) No right to reimbursement and no right of removal (547) Possessor in GF Possessor in BF Ornamental Expenses Limited right of
removal (548) Limited right of removal (549) Deterioration or Loss No liability unless due to fraud or negligence after becoming in BF after service of summons (552)
Liable in every case (552)
Costs of Litigation Bears cost (550) Bears cost (550)
I. LOSS OR UNLAWFUL DEPRIVATION
OF A MOVABLE PROPERTY
I.1. POSSESSION OF MOVABLE
ACQUIRED IN GOOD FAITH (IN CONCEPT OF OWNER) IS EQUIVALENT TO TITLE [NCC 559]
Possessor has actual title which is defeasible only by true owner.
REQUISITES OF TITLE (1) Possession in GF;
(2) The owner has voluntarily parted with the possession of the thing; and
(3) The possession is in the concept of an owner.
Nevertheless, one who has lost any movable or has been unlawfully deprived thereof may recover it from the person in possession.
When the owner can recover (1) Has lost the thing; or
(2) Has been unlawfully deprived thereof. (3) Includes swindling, not only theft or
robbery
If the current possessor has acquired it in good faith at a public sale, owner must reimburse the price paid in order to recover the property.
PAGE 125 OF 574 I.2. PERIOD TO RECOVER [NCC 1140, 1132,
1133]
Actions to recover movable properties prescribe after 8 years from the time the possession thereof is lost, unless the possessor has acquired the ownership by prescription for a lesser period.
Ownership of movable properties prescribes through uninterrupted possession for 4 years in good faith.
Ownership of personal property also prescribes through uninterrupted possession for 8 years, without need of any other condition.
Movable properties possessed through a crime can never be acquired through prescription by offender (NCC 1133).
I.3. FINDER OF LOST MOVABLE [NCC 719-
720]
(1) Whoever finds a movable, which is not a treasure, must return it to its previous possessor.
(2) If the previous possessor is unknown, the finder shall immediately deposit it with the mayor of the city or municipality where the finding has taken place. (3) The finding shall be publicly announced
by the mayor for two consecutive weeks in the way he deems best.
(4) If the movable cannot be kept without deterioration, or without expenses which considerably diminish its value, it shall be sold at public auction 8 days after the publication.
(5) 6 months from the publication having elapsed without the owner having appeared, the thing found, or its value, shall be awarded to the finder. The finder and the owner shall be obliged, as the case may be, to reimburse the expenses.
(6) If the owner should appear in time, he shall be obliged to pay, as a reward to the finder, 1/10 of the sum or of the price of the thing found.
J. EFFECTS OF POSSESSION IN THE
CONCEPT OF AN OWNER
General Rule: Possession may lapse and ripen into full ownership. Possession in the concept of owner has in his favor the presumption that he has just title and he cannot be obliged to show or prove it; but not for purposes of acquisitive prescription. [NCC 541] For purposes of prescription, just title must be proved; it cannot be presumed. (NCC 1131)
Basis: Possession presumes ownership, unless the contrary is proved.
Just title: that which is legally sufficient to transfer the ownership or the real right to which it relates.
For the purposes of prescription, there is just title when the adverse claimant came into possession of the property through one of the modes recognized by law for the acquisition of ownership or other real rights, but the grantor was not the owner or could not transmit any right. [NCC 1129]
Exception: For the purposes of prescription, just title must be proved; it is never presumed. [NCC 1131]
(1) Possessor may bring all actions necessary to protect his possession except accion reivindicatoria.
(2) May employ self-help under Art. 429. (3) Possessor may ask for inscription of such
real right of possession in the registry of property.
(4) Has right to the fruits and reimbursement of expenses (assuming he is possessor in good faith)
(5) Upon recovery of possession which he was unlawfully deprived of, may demand fruits and damages.
(6) Generally, he can do on the things possessed everything that the law authorizes the owner to do until he is ousted by one who has a better right. (7) This is whether possession is in good
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