Land Owner is the Builder, Planter or Sower

Land Owner (LO) and Builder, Planter or Sower (BPS)

A. GOOD FAITH Acquire building etc. after paying indemnity for value of materials B. BAD FAITH GOOD FAITH Acquire after paying value of materials and 1. Remove materials in any event indemnity for damages but subject to the right of OM to remove 2. Be indemnified for damages C. GOOD FAITH BAD FAITH Acquire w/o paying indemnity Lose materials w/o right to be indemnified D. BAD FAITH BAD FAITH Apply the principle that the bad faith of one party neutralizes the bad faith of the other party; hence, both shall be considered as having acted in good faith

Owner of Materials (OM)

GOOD FAITH 1. Remove materials if w/o injury to work or w/o plantings or constructions being destroyed 2. Receive indemnity for value of materials

Land Owner is not the BPS

LO
A. GOOD FAITH LO has the option to: 1. sell the land to BP or collect rent from S, unless the value of the land is considerably greater than building etc., in which case, BP shall pay rent under the terms fixed by the parties 2. acquire improvements after paying indemnity which could either be: a. original cost of improvements b. increase in the value of the whole B. GOOD FAITH 1. Option to: a. acquire improvements w/o paying indemnity and collect damages b. sell the land to BP or rent it to S, and collect damages in both cases c. order demolition of work or restoration to former condition and collect damages in both cases 2. Pay necessary expenses for preservation C. BAD FAITH 1. LO must indemnify BPS for improvements and pay damages GOOD FAITH

BPS and OM

In case LO exercises (2), B has the right to retain until indemnity is paid and cannot be required to pay rent BAD FAITH 1. Lose them w/o right to be indemnified 2. Recover necessary expenses for preservation of land 3. Pay damages to LO

GOOD FAITH 1. Remove them in any event and/or

2. Be indemnified for damages 2. Cannot compel BPS to buy land C. BAD FAITH BAD FAITH same as though both acted in good faith

Land Owner, BPS, and OM are different persons

LO
A. GOOD FAITH

BPS
GOOD FAITH 1. Right of retention until payment of indemnity for necessary and useful expenses 2. Primarily liable to pay value of materials to OM

OM
GOOD FAITH 1. Collect value of materials primarily from BPS and subsidiarily from LO if former is insolvent 2. Remove materials only if he can w/o injury

1. Acquire improvements after payment of indemnity to BPS and be subsidiarily liable to OM for value of materials 2. a. sell the land to BP except if its value is considerably more b. rent to S B.

GOOD FAITH

GOOD FAITH 1. Right of retention for necessary and useful expenses 2. Keep building etc. w/o indemnity to OM and collect damages from him

BAD FAITH 1. Lose materials w/o right to indemnity 2. Pay damages

1. Option to: a. acquire improvements and pay indemnity to BPS b. i.) Sell to BP except if value of land is considerably more; then, forced lease ii.) Rent to S 2. Without subsidiary liability for cost of materials C. GOOD FAITH 1. Option to: a. acquire improvements w/o paying indemnity and collect damages b. demolition/restoration plus damages c. sell to BP or collect rent from S plus damages 2. Pay necessary expenses to BPS D. BAD FAITH

BAD FAITH 1. Recover necessary expenses for land preservation 2. Loses improvements w/o right to indemnity from LO unless LO sells the land

BAD FAITH 1.Recover value from BPS (in pari delicto) 2. If BPS acquired improvements, remove materials if possible w/o injury 3. No action against LO and may be liable for damages

BAD FAITH same as though all acted in good faith (in pari delicto)

BAD FAITH

E. BAD FAITH 1. Acquire improvements after paying indemnity and damages to BPS, unless the latter decides to remove 2. Subsidiarily liable to OM for materials GOOD FAITH 1. Remove improvements 2. Be indemnified for damages in any event GOOD FAITH 1. Remove materials if possible w/o injury 2. Collect value of materials primarily from BPS; subsidiarily from LO

F.

BAD FAITH 1. Acquire improvements after indemnity; 2. subsidiarily liable to OM for materials 3. a. sell to BP except if value of land is considerably more b. rent to S G. GOOD FAITH 1. Option to: a. acquire w/o paying indemnity and collect damages b. sell to BP or rent to S and collect damages c. demolish/restore and collect damages 2. Pay necessary expenses to BPS 3. Subsidiarily liable to OM w/o damages H. BAD FAITH Acquire improvements and pay indemnity and damages to BPS, unless the latter decides to remove

BAD FAITH 1. Right of retention necessary expenses

for

GOOD FAITH 1. Collect value of materials primarily form BPS; subsidiarily from LO 2. Collect damages 3. If BPS acquired improvements, remove materials

2. Pay value of materials to OM and pay him damages

BAD FAITH 1. Recover necessary expenses 2. Loses improvements w/o right of indemnity from LO unless LO sells the land 3. Loses right of retention 4. Pay damages to LO 5. Primarily liable to pay value of materials plus damages GOOD FAITH 1. Indemnity for damages 2. Remove improvements in any event

GOOD FAITH 1. Collect value of materials primarily form BPS with damages, or subsidiarily from LO without damages 2. Remove materials in any event if BPS acquired materials

BAD FAITH No indemnity; loses materials

NOTE: It is the owner of the land who is allowed to exercise the option because his right is older and because by the principle of accession he is entitled to the ownership of the accessory thing (Depra vs Dumlao 135 SCRA 475)