You're currently signed in as:
User

HEIRS OF LATE JAIME BINUYA v. CA

This case has been cited 1 times or more.

2006-03-03
CALLEJO, SR., J.
In a plethora of cases, this Court has held that Article 448 of the Civil Code, in relation to Article 546 of the same Code, which allows full reimbursement of useful improvements and retention of the premises until reimbursement is made, applies only to a possessor in good faith, i.e., one who builds on land with the belief that he is the owner thereof. It does not apply where one's only interest is that of a lessee under a rental contract; otherwise, it would always be in the power of the tenant to "improve" his landlord out of his property. [37] In this case, there is no question that petitioner was initially a lawful possessor because his entry into the property is by virtue of a lease contract with respondent. However, as a mere lessee whose possession after the expiration of the contract is at the sufferance of the owner of the property, he cannot claim to be a builder in good faith. Under Article 1678 of the New Civil Code, petitioner is entitled to one-half of the value of the improvements only if respondent, as the owner, decides to appropriate the improvements. Since respondent refused to appropriate the improvements, petitioner cannot compel her to reimburse to him one-half their value. [38] The sole right of petitioner under Article 1678 is to remove the improvements without causing any more damage upon the property leased than is necessary. [39]