Briones v. Macabagdal (G.R. No. 150666, August 3, 2010)

CASE DIGEST: LUCIANO BRIONES and NELLY BRIONES, Petitioners, vs. JOSE MACABAGDAL, FE D. MACABAGDAL and VERGON REALTY INVESTMENTS CORPORATION, Respondents. (G.R. No. 150666, August 3, 2010).FACTS: Spouses Macabagdal purchased from Vergon a lot located in Vergonville Subdivision. Sometime in 1984, spouses Briones, after obtaining the necessary building permit from Vergon, started constructing on the same parcel of land. After learning of such, spouses Macabagdal demanded sposes Briones to demolish the house and vacate the property. Spouses Briones refused.

Spouses Macabagdal thus filed a case for recovery of ownership and possession of said parcel of land. The RTC and CA ruled in favor of spouses Macabagdal, and ordered spouses Briones to either vacate the property or to pay spouses Macabagdal the prevailing price of the land.

ISSUE: Are spouses Briones builders in good faith, thus, must not bear the damage alone?

HELD: Yes. Since there was no evidence to show that spouses Briones were builders in bad faith, they must be considered builders in good faith. Thus, the landowner is given the option to appropriate the building by paying compensation or to oblige the builder to pay the price of the land. Moreover, the builder in good faith is entitled to be reimbursed the necessary and useful expenses they made of the subject land.

Thus, spouses Macabagdal cannot demand the removal of the building unless he first exercises the option of appropriating such after payment to spouses Briones of the proper compensation.