Philippine National Bank v Generoso de Jesus GR No. 149295, Septemer 2!, 2""! #a$ts% &n 1995, respondent 'iled a $omplaint a(ainst the petitioner ank 'or re$over) o' o*nership and possession, *ith dama(es. Respondent alle(ed that he had a$+uired a par$el o' land and $aused a veri'i$ation surve) o' propert). e dis$overed that the northern portion o' the lot *as ein( en$roa$hed upon ) a uildin( o' petitioner to the e-tent o' 124 s+uare meters. e sent t*o demand letters ut, PNB re'used to va$ate. Petitioner $ontended that *hen it a$+uired the lot and uildin( 'rom a)or &(na$io, the en$roa$hment *as alread) e-istin(. /o remed) the situation, a)or o''ered to sell the area to petitioner ut, the sale did not materiali0e sin$e the ma)or mort(a mort(a(ed (ed the lot to evelo evelopme pment nt Bank Bank o' the Philip Philippin pines. es. /rial /rial $ourt $ourt de$ide de$ided d in 'avor 'avor o' respondent de$larin( him to e the ri(ht'ul o*ner o' the disputed lot and ordered petitioner to surrender the possession and removal o' improvements. 3 a''irmed R/. &ssue% hether or not 3rti$le 44 should e applied in the $ase eld% No. 3rti$le 44 provides% 6Art. 448. The owner of the land on which anything has been built, sown or planted in good faith, shall have the right to appropriate as his own the works, sowing or planting, after payment of the indemnity provided for in Articles 546 and 548, or to oblige the one who built or planted to pay the price of the land, and the one who sowed, the proper rent. owever, the builder or planter cannot be obliged to buy the land if its value is considerably considerably more than that of the building or trees. !n such case, he shall pay reasonable rent, if the owner of the land does not choose to appropriate the building or trees after proper indemnity. The parties shall agree upon the terms of the lease and in case of disagreement, the court shall fi" the terms thereof.#
3rti$le 44 re'ers to pie$e o' land *hose o*nership is $laimed ) t*o or more persons, one o' *hom has uilt some *ork. &t *ill not appl) i' the uilder is the also the o*ner o' the land *ho has (iven up up o*nership o' the said land ) *a) o' sale or other means. Builder in (ood 'aith is one *ho, not ein( the o*ner o' the l and, uilds on that land elievin( himsel' to e its o*ner and una*are o' the de'e$t in his title or mode o' a$+uisition. Good 'aith is an honest elie', an asen$e o' mali$e mali$e and desi(n desi(n to de'rau de'raud d to seek seek un$ons un$ons$io $iona nale le advanta advanta(e. (e. &n posses possessio sion, n, one is $onsidered in (ood 'aith i' he is not a*are that there e-ists in his title an) 'la* *hi$h $an invalidates it. Given the 'indin(s o' oth R/ and 3, it is evident enou(h that petitioner *ould 'all mu$h to short 'rom its $laim o' (ood 'aith. Petitioner *as a*are and advises, prior to his a$+uisition, that a part o' uildin( sold stood on the land not $overed ) the land $onve)ed to him. /here'ore, petitioner *as not in valid position to invoke provisions o' 3rti$le 44.
