Sagrada v. National Coconut Corporation

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SAGRADA ORDEN DE PREDICADORES DEL SANTISMO ROSARIO DE FILIPINAS, plaintiff-appellee,

vs. NATIONAL COCONUT CORPORATION, defendant-appellant.


G.R. No. L-3756 June 30, 1952
EN BANC Sources of Obligation
LABRADOR, J.:
Facts:

Land Ownership
Sagrada -> Tekkosho Land occupation under APC-US Ownership and Custodianship
Before WWII, 1943 April 1946 1946 1947 1948
WWII 1946
Sagrada Taiwan Alien Copra Export National NCC repair NCC
Tekkosho Property Management Coconut the leased
(Japanese Custodian Company Corporation warehouse one-third
Coporation) (APC) of (Philippine for of the
the Government) P26,898 warehouse
United to
States of Dioscoro
America Sarile

On 1948, NCC leased one-third of the warehouse at P500/month which as later raised to
P1,000/month to Dioscoro Sarile. However, the latter did not pay. NCC filed an action against
him but it is not shown if the judgment was ever executed.
Sagrada filed an action to recovered the land. The judgment declares that she has always been
the owner, because the sale to Taiwan Tekkosho was void ab initio; that the Alien Property
Administration never acquired any right to the property; that as NACOCO has used the property
and had subleased portion thereof, it must pay reasonable rentals for its occupation to Sagrada.
Issues:
Whether or not NACOCO has an obligation to pay rent to Sagrada
Ruling:
No. NACOCO has no obligation to pay rent. If NACOCO is liable at all, its obligations, must arise
from any of the four sources of obligations, namely, law, contract or quasi-contract, crime, or
negligence.
Here, APA’s title of the land is based by legal provision of the seizure of enemy property, so it is
not a trustee of Sagrada, nor a privy to the obligations of the Taiwan Tekkosho. Thus, there was
no implied agreement that NACOCO was to pay Sagrada for the use of the land because the
Alien Property Administration had the absolute control of the property. And NACOCO occupied
the land with the permission of APA which had the legal administration thereof. There was no
negligence on NACOCO’s part.
Notably, even the Copra Export Management Company who occupied the land before NACOCO
does not appear to have paid rentals because the "custodianship agreement," between them
and APA has no provision for the payment of such or of any compensation for its custody and or
occupation and the use.
And as to the rents NACOCO collected from its lessee (Dioscoro Sarile), the same should accrue
to it as a possessor in good faith.
Wherefore, the part of the judgment appealed from, which sentences defendant-appellant to
pay rentals from August, 1946, to February 28, 1949, is hereby reversed. In all other respects
the judgment is affirmed. Costs of this appeal shall be against the plaintiff-appellee

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