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The Philippine Lawyer – What is a Builder in Bad Faith?

-Ferdie Aguirre

(About the writer: G. Ferdinand (Ferdie) Aguirre has more than 20 years of combined experience as a legal professional in the Philippines and in Canada. After graduating from the Ateneo de Manila College of Law in 1987 and passing the Bar given that year, he has held the following positions in the Philippine Corporate world: Asst. Senior Vice President of the Philippine National Bank, Senior Manager of the Law Division of the Metropolitan Bank & Trust Company and as Chief Legal Counsel of Unibancard. His private practice included having successfully handled several major cases and being included in the Philippine case books. Ferdie Aguirre was also a professor of Political Science and Business Law before migrating to Ontario Canada in 2005 where worked as a Paralegal. He is presently a Court Agent & a Commissioner for Oaths in Alberta and is now working on his admission to the Alberta Bar. Ferdie Aguirre may be reached at (403) 6131168 /(403) 4747168 or at [email protected])

WHAT IS A BUILDER IN BAD FAITH?

Apollo and Norman have been neighbours in Bulacan for the last 10 years. In 2005, Apollo and his family migrated to Canada where they intended to live permanently. Before he left, Norman, a mechanic, asked Apollo if he could use the vacant 400 square meter lot owned by the latter so he could put up a makeshift garage for some of the cars he is repairing. Being a good friend and neighbour, Apollo agreed provided that no permanent structure is erected on the property. Norman readily agreed and also asked that a sixty day notice be given to him to remove any improvements in case Apollo will need the property

As the years went by, the auto repair shop business of Norman grew and as the demand for a bigger space arose, he eventually built a driveway and garage made of concrete materials on the property of Apollo.

In 2010, Apollo returned and saw the concrete structure and demanded its demolition as he is intending to put a 5 door apartment on his property as a source of income for his parents. At first Norman objected and eventually asked for a 6 month grace period to vacate the premises to which Apollo agreed. At the end of the 6 month period, Norman wrote to Apollo demanding that he be compensated or reimbursed for the amount he spent for the construction of his concrete structure. According to Norman, the value of the land appreciated because of the structure he put there.

IS NORMAN ENTITLED TO BE PAID OR REIMBURSED FOR his EXPENSES IN CONSTRUCTING THE IMPROVEMENTS OVER APOLLO’S

LAND?

Norman is not entitled to any compensation or reimbursement because he is a BUILDER IN BAD FAITH. A builder in bad faith is any person who builds or places any improvement on the property of another without the latter’s permission. Although he was allowed by Apollo to use the property, he was told not to build anything permanent on the land.

As builder in bad faith Norman lost the improvement made by him consisting of the concrete garage to the owners of the land without right to indemnity, pursuant to Article 449 of the Civil Code, which provides:

ART. 449. He who builds, plants or sows in bad faith on the land of another, loses what is built, planted or sown without right to indemnity.

Norman can even be made to pay for the cost of the removal of his improvements over Apollo’s land.

(Legal Disclaimer: This article is designed for general information only. The information presented at this site should not be construed to be neither formal legal advice nor the formation of a lawyer/client relationship.)

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