Liwanag v Yu-Songquian

LIWANAG v YU-SONGQUIAN

FACTS: Yu-Chiocco leased a land on Calle Lemery, Tondo in 1901. The property, however, was later claimed by Leoncia Liuanag, on behalf of the estate of Yu-Chingco, who had died in China on Oct. 30 1901. Yu-Chiocco himself died in August 1902.

The lower court found that Yu-Chiocco contributed the labor, while the materials used belonged to the estate of Yu-Chingco, and ruled that the estate of Yu-Chingco owned half of the buildings.

The Supreme Court overturned the ruling, saying that even if the materials belonged to Yu-Chingco, “it does not follow, as a conclusion of law, that the owner of the material thereby became the owner of any part of the buildings.”
Instead, Liuanag should be paid for the materials that were used to construct the building.

It cited Art. 360 of the Civil Code, which says that a landowner who builds on his land using the materials of another is obliged to pay for the value of the material. Saying that the provision would also apply to a leasehold in real estate, the Court said Liuanag has a claim for the value of the materials that were used in the construction of the building.

Judgment: Ruling REVERSED. Case remanded to lower court with directions to enter judgment in favor of defendant, without prejudice to present claim against the person or estate bound to pay it.

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