SAGRADA ORDEN VS NACOCO G.R. NO. L-3756 JUNE 30, 1952

FACTS:

The land in question belongs to plaintiff Sagrada Orden in whose name the title was registered before the war

On January 4, 1943, during the Japanese military occupation, the land was acquired by a Japanese corporation by the name of Taiwan Tekkosho

After liberation on April 4, 1946, the Alien Property Custodian of the United States of America took possession, control, and custody of the property pursuant to the Trading with the Enemy Act

The property was occupied by the Copra Export Management Company under a custodian agreement with US Alien Property Custodian. When it vacated the property, it was occupied by defendant National Coconut Corporation

The plaintiff made claim to the said property before the Alien Property Custodian. Alien Property Custodian denied such claim

It bought an action in court which resulted to the cancellation of the title issued in the name of Taiwan Tekkosho which was executed under threats, duress, and intimidation; reissuance of the title in favor of the plaintiff; cancellation of the claims, rights, title, interest of the Alien property Custodian; and occupant National Coconut Corporation’s ejection from the property. A right was also vested to the plaintiff to recover from the defendants rentals for its occupation of the land from the date it vacated.

Defendant contests the rental claims on the defense that it occupied the property in good faith and under no obligation to pay rentals.

ISSUE: Whether or not the defendant is obliged to pay rentals to the plaintiff

HELD: No. Nacoco is not liable to pay rentals prior the judgment. If defendant-appellant is liable at all, its obligations, must arise from any of the four sources of obligations, namley, law, contract or quasi-contract, crime, or negligence. (Article 1089, Spanish Civil Code.) Defendant-appellant is not guilty of any offense at all, because it entered the premises and occupied it with the permission of the entity which had the legal control and administration thereof, the Allien Property Administration. Neither was there any negligence on its part.