96 SCRA 130 February 21, 1980

FLOREZA v EVANGELISTA
FACTS:
The Evangelistas were the owner of a residential lot in Rizal with an area of 204.08 sq. m. assessed at
P410. They borrowed P100 from loreza. loreza o!!"#ied the residential lot and b"ilt a ho"se of light
material $barong%barong& with the !onsent of the Evangelistas. 'dditional (oans were made by the
Evangelistas. loreza demolished the ho"se of light material and !onstr"!ted one of strong material
assessed. loreza has not been #aying any rentals sin!e the beginning of their transa!tions. Event"ally)
Evangelistas sold) with a right to re#"r!hase within * years) their land to loreza. +even months before
the e,#iry of the re#"r!hase #eriod) the Evangelistas were able to #ay in f"ll. loreza ref"sed to va!ate the
lot "nless he was first reimb"rsed for the val"e of the ho"se he b"ilt Evangelistas filed a !om#laint. -.
r"led based on 'rt) 448 of the -ivil -ode saying that Evangelistas have the !hoi!e between #"r!hasing
the ho"se or selling the land to loreza. -' r"led that 'rt. 448 was ina##li!able and that loreza was
not entiled to the reimb"rsement of his ho"se and !o"ld remove the same at his own e,#ense.
ISSE:
1! "ON F#$re%a &a' e()*)#e+ )$ re*,bur'e,e() $- ).e /$') $- .*' .$u'e!
2! "ON .e 0.*' .e*r' &.$ re1#a/e+ .*,2 '.$u#+ 1ay re()a# $- ).e #a(+!
3EL4:
1. /0. .ss"e of reimb"rsement is not moot be!a"se if loreza has no right of retention) then he m"st #ay
damages in the form of rentals. 'gree with -' that 'rt. 448 is ina##li!able be!a"se it a##lies only when
the b"ilder is in good faith $he believed he had a right to b"ild&. 'rt. 412 is also not a##li!able be!a"se it
req"ires both of the #arties to be in bad faith. /either is 'rt. 1*1* a##li!able be!a"se loreza is not a
vendee a retro. The ho"se was already !onstr"!ted in 1341 $light materials& even before the #a!to de
retro was entered into in 1343. loreza !annot be !lassified as a b"ilder in good faith nor a vendee a
retro) who made "sef"l im#rovements d"ring the #a!to de retro) he has no right to reimb"rsement of
the val"e of the ho"se) m"!h less to the retention of the #remises "ntil he is #aid.
4is rights are more a5in to a "s"fr"!t"ry "nder 'rt. 163) who may ma5e on the #ro#erty "sef"l
im#rovements b"t with no right to be indemnified thereof) 4e may) however) remove s"!h im#rovements
sho"ld it be #ossible to do so witho"t damage to the #ro#erty.
2! 5ES! Fr$, ).e )*,e ).e re+e,1)*$( 1r*/e &a' 1a*+ *( 6a(uary 3, 1977, F#$re%a8' r*9.) )$ u'e ).e re'*+e()*a# #$)
&*).$u) re() /ea'e+! 3e '.$u#+ be .e#+ #*ab#e -$r +a,a9e' *( ).e -$r, $- re()a#' -$r ).e /$()*(ue+ u'e $- ).e #$) -$r
:10 ,$().#y -r$, 6a(uary 3, 1977 u()*# ).e .$u'e &a' re,$ve+ a(+ ).e 1r$1er)y va/a)e+ by F#$re%a $r .*' .e*r'!
6u+9,e() a--*r,e+ &*). ,$+*-*/a)*$(!