DEPRA VS DUMLAO

136 SCRA 475 Civil Law Property Accession Industrial Builder in Good Faith; Owner in Good
Faith Forced Lease
Remedial Law Res Judicata Unlawful Detainer will not bar a subsequent action for Quieting of
Title
The properties of Francisco Depra and Agustin Dumlao were adjoining owners. In 1972, Dumlao
built his house however, he unwittingly built the kitchen portion of his house on Depras land. Depra
then sued Dumlao for unlawful detainer. During pre-trial, the parties agreed that Dumlao was a
builder in good faith.
Eventually, the trial court ruled that both parties were in good faith but then a forced lease was
ordered whereby Dumlao retains the kitchen but he shall pay a rental to Depra at P5.00 per month.
But Depra refused to receive the rental payments from Dumlao, instead, Depra filed an action for
quieting of title against Dumlao. In his defense, Dumlao raised the defense of res judicata
considering that the nature and purpose of the initial unlawful detainer case and that of
the subsequent quieting of title case is ejectment.
ISSUES:
1. Whether or not the order of forced lease decreed in the unlawful detainer case is valid.
2. Whether or not the subsequent case of res judicata is barred by prescription due to the prior case
of unlawful detainer.
HELD:
1. No. The judgment of forced lease is improper. A forced lease, just like co-ownership is not
favored. It should be considered that the parties themselves stipulated that Dumlao, the builder, was
in good faith and it was later found that Depra, the owner, was also in good faith. Hence, what
applies is the provisions of Article 448 of the Civil Code, which provides in sum that:
a. Builder in good faith entitled to retain the possession of the land on which he built in good faith
until he is paid the value of the building he built in good faith;
b. Owner in good faith has the option to either (i) pay for the building OR (ii) sell his land to the
builder in good faith but builder cannot be forced to buy said land if the same is considerably more
than the value of the building.
Forced rent only comes in if the owner exercises his right to sell the land but the builder rejects it by
reason of the price thereof being considerably more than the value of the building in such case, the
parties shall agree to the terms of the lease, if they cant agree then they may bring the issue to
court.
2. No. The action for quieting of title is not barred by reason of res judicata. The cause of action in
the unlawful detainer case involves possession while the cause of action in the quieting of title case
involves ownership. Furthermore, the Rules of Court explicitly provides that judgment in a detainer
case shall not bar an action between the same parties respecting title to the land.