G.R. No. 72876. January 18, 1991 (Case Brief / Digest)

Title: **Ignao vs. Intermediate Appellate Court**

### Facts:
The case revolves around a dispute over a parcel of land in Cavite, originally co-owned by Florencio Ignao, the petitioner, and his uncles, Juan and Isidro Ignao, the respondents. A previous partition case (Civil Case No. N-1681) resulted in the division of the land, designating specific portions to the parties. Despite the decision, the actual partition of the land was not executed, leading Florencio to file a complaint for recovery of possession after discovering that the houses built by Juan and Isidro encroached on his allotted portion. The trial court found Juan and Isidro to be builders in good faith and ordered Florencio to sell the encroached land to them. Florencio appealed to the Intermediate Appellate Court, which affirmed the trial court’s decision, prompting the petition for review by certiorari to the Supreme Court.

### Issues:
1. Whether Article 448 of the Civil Code, concerning the rights of the owner and the builder in good faith on property owned exclusively, applies to situations where the property is co-owned.
2. The court’s departure from providing the landowner the choice of appropriating the improvements or selling the land, as outlined in Article 448.
3. The determination of the compensation or sale price of the land under dispute.

### Court’s Decision:
The Supreme Court modified the decision of the Intermediate Appellate Court. It held that:
1. Article 448 applies even in cases of former co-ownership that has been terminated by partition, provided there was good faith in the building of improvements.
2. The decision of the lower courts was incorrect in not allowing the landowner, Florencio, to exercise his choice as mandated by Article 448, either to appropriate the improvements upon payment of indemnity or compel the builders in good faith to buy the land.
3. The matter of determining the price for the land was premature, as Florencio had not yet exercised his option.

### Doctrine:
The Supreme Court reiterated the application of Article 448 of the Civil Code to situations where co-ownership is dissolved by partition, and improvements are made in good faith on the land now exclusively owned. The owner of the land has the right of choice under Article 448, contrary to the lower courts’ decisions that mandated Florencio to sell the land.

### Class Notes:
– **Co-ownership**: Ownership by two or more persons where each owns an undivided share.
– **Article 448 of the Civil Code**: Applies to situations where improvements were made on land in good faith by a person not owning the land. Provides the landowner the right to appropriate the improvements after payment of indemnity or oblige the builder to buy the land.
– **Builder in Good Faith**: A person who builds on land believing they have the right to do so.

### Historical Background:
This case provides insight into the complexities of property disputes, especially concerning co-ownership and the rights of builders in good faith. It underscores the legal intricacies when partition and improvements on property intersect, highlighting the need for clear articulation of rights and options available to the parties involved.


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