221 Phil. 168 – 136 SCRA 475 – Civil Law – Law on Property – Accession Industrial – Builder in Good Faith; Owner in Good Faith – Forced Lease
Remedial Law – Summary Proceedings – Rule 70; Forcible Entry and Unlawful Detainer – Res Judicata – Unlawful Detainer will not bar a subsequent action for Quieting of Title
The properties of Francisco Depra and Agustin Dumlao were adjoining each other. In 1972, Dumlao built his house however, he unwittingly built the kitchen portion of his house on Depra’s land. Depra then sued Dumlao for unlawful detainer. During pre-trial, the parties agreed that Dumlao was a builder in good faith.
Eventually, the trial court ruled that both parties were in good faith but then a forced lease was ordered whereby Dumlao retains the kitchen but he shall pay a rental to Depra at P5.00 per month. But Depra refused to receive the rental payments from Dumlao, instead, Depra filed an action for quieting of title against Dumlao. In his defense, Dumlao raised the defense of res judicata considering that the nature and purpose of the initial unlawful detainer case and that of the subsequent quieting of title case is ejectment.
ISSUES:
1. Whether or not the order of forced lease decreed in the unlawful detainer case is valid.
2. Whether or not the subsequent case of res judicata is barred by prescription due to the prior case of unlawful detainer.
HELD:
1. No. The judgment of forced lease is improper. A forced lease, just like co-ownership is not favored. It should be considered that the parties themselves stipulated that Dumlao, the builder, was in good faith and it was later found that Depra, the owner, was also in good faith. Hence, what applies is the provisions of Article 448 of the Civil Code, which provides in sum that:
a. Builder in good faith – entitled to retain the possession of the land on which he built in good faith until he is paid the value of the building he built in good faith;
b. Owner in good faith – has the option to either (i) pay for the building OR (ii) sell his land to the builder in good faith but builder cannot be forced to buy said land if the same is considerably more than the value of the building.
Forced rent only comes in if the owner exercises his right to sell the land but the builder rejects it by reason of the price thereof being considerably more than the value of the building – in such case, the parties shall agree to the terms of the lease, if they can’t agree then they may bring the issue to court.
2. No. The action for quieting of title is not barred by reason of res judicata. The cause of action in the unlawful detainer case involves possession while the cause of action in the quieting of title case involves ownership. Furthermore, the Rules of Court explicitly provides that judgment in a detainer case shall not bar an action between the same parties respecting title to the land.
