• Davao Saw Mill Co. erected a building housing its lumber machinery on a land belonging to another person.
    • The contract of lease between DSM and the landowner stipulated that all improvements and buildings introduced and erected by the lessee will be exclusively owned by the lessor upon the expiration of the contract period agreed upon.
  • In another case, Davao Light and Power Co. filed a suit against DSM where in the Court favored the former. A writ of execution was issued and the property in question was included in the properties levied by the sheriff.
  • Both parties cite Article 334 of the Civil Code
    • Par 1 by appellant
      • Land, buildings, roads and constructions of all kinds adhering to the soil;
    • Par 5 by appellee
      • Machinery, liquid containers, instruments or implements intended by the owner of any building or land for use in connection with any industry or trade being carried on therein and which are expressly adapted to meet the requirements of such trade of industry.
    • Nevers and Callaghan case in Puerto Rico
      • machinery which is movable in its nature only becomes immobilized when placed in a plant by the owner of the property or plant, but not when so placed by a tenant, a usufructuary, or any person having only a temporary right, unless such person acted as the agent of the owner.

Disclaimer: All case digests posted in this blog are my own. If you think I missed important points raised in the case, feel free to let me know and I will credit you for corrections and/or suggestions you may have. Hope this helps!


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