Case Digest: MWSS vs. Court of Appeals

Metropolitan Waterworks and Sewerage System vs. Court of Appeals

G.R. No. L-54526

Gutierrez, Jr., J.

Doctrine: He who builds, plants or sows in bad faith on the land of another, loses what is built, planted or sown without right to indemnity.

FACTS:

In a civil case of possession by the City of Dagupan against the MWSS for recovery of possession and ownership of the Dagupan Waterworks System, the trial court rendered a decision in favour of the City of Dagupan.  However, the trial court also held that MWSS was in bad faith, and was therefore not entitled to their claim of Php255,000.00 for necessary and useful improvements upon the disputed waterworks system.

ISSUES:

Whether or not MWSS has the right to remove all useful improvements introduced to the Dagupan Waterworks System.

RULING:

NO. Article 449 of the Civil Code of the Philippines provides that "he who builds, plants or sows in bad faith on the land of another, loses what is built, planted or sown without right to indemnity." As a builder in bad faith, NAWASA lost whatever useful improvements it had made without right to indemnity. The right given a possessor in bad faith is to remove improvements applies only to improvements for pure luxury or mere pleasure, provided the thing suffers no injury thereby and the lawful possessor does not prefer to retain them by paying the value they have at the time he enters into possession.