PROPERTY REVIEWER||ATTY.

MENDOZA 1 Cainday||Santiago||Morana||De Vera|| Cancino

action has lapsed through the statute of limitations) Distinctions between acquisitive and extinctive prescription Acquisitive Extinctive Requires possession Inaction by the owner by a claimant who is out of possession or NOT the owner neglect of one with a right to bring his action Applicable to Applies to all kinds of ownership and other rights, whether real or real rights personal Vests ownership or Produces the other real rights in the extinction of rights or occupant bars a right of action Results in the Merely results in the acquisition of loss of a real or ownership or other real personal right or bars rights in a person as the cause of action to well as the loss of said enforce said right ownership or real rights in another Can be proven under Should be affirmatively the general issue pleaded and proved to without its being bar the action or claim affirmatively pleaded of the adverse party

Prescription
Art. 1106. By prescription, one acquires ownership and other real rights through the lapse of time in the manner and under the conditions laid down by law. In the same way, rights and conditions are lost by prescription. (1930a) Prescription a means of acquiring ownership and other real rights or losing rights or actions to enforce such rights through lapse of time. (Art. 1106) Kinds of Prescription: 1. Acquisitive prescription the acquisition of ownership and other real rights through possession of a thing in the manner and under the conditions provided by law. adverse possession (kind of possession which is in opposition to the true title or real owner, commenced without right but ripened into title by lapse of time) elements: a. Capacity of the claimant to acquire by prescription b. A thing capable of acquisition by prescription c. Possession of the thing under certain conditions d. Lapse of time provided by law kinds: a. Ordinary acquisitive requires possession of things in good faith and with just title1 for the time fixed by law (Art. 1117) b. Extraordinary acquisitive good faith and just title are not necessary (Art. 1117) 2. Extinctive prescription the loss or extinguishment of property rights or actions through the possession by another of a thing for the period provided by law or through failure to bring the necessary action to enforce ones right within the period fixed by law. limitation of actions (where the plaintiff fails to go to court within the prescriptive period, he loses his cause, not really because the defendant has acquired the formers right by adverse possession, but because the plaintiffs
1

Rationale of prescription: Prescription is

of purely statutory origin and is founded on ground of public policy. Time limit is imposed for a party to enforce his claim so that titles to property and other rights will be stabilized. It protects the diligent and vigilant, not the person who sleeps on his rights. Prescription is different and independent of laches. Laches failure or neglect for an unreasonable and unexplained length of time, to do that which, by exercising due diligence, one could or should have done earlier; negligence or omission to assert a right within a reasonable time, warranting a presumption that the party entitled to assert it either has abandoned or declined to assert it. a recourse in equity; applies only in the absence of a statutory prescriptive period an equitable doctrine and is particularly determined by the courts based on equitable considerations.

Just title only a colored title or such title where although there was a mode of transferring ownership, still something is wrong because the grantor is not the owner.

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either personally or through their parents, guardians or legal representatives. (1931a) Minors and other incapacitated persons may also under certain circumstances, acquire by prescription. In order that these persons can acquire by prescription, it is necessary that they must have discernment, because the intent to appropriate the thing as ones own is an essential element of the possession. When the prescription requires a just title, the capacity to prescribe will be the same capacity required for the particular title in question. But in prescription where title is unnecessary, the capacity for possession is required, because possession is an element common to all kinds of acquisitive prescription. Art. 1108. Prescription, both acquisitive and extinctive, runs against: (1) Minors and other incapacitated persons who have parents, guardians or other legal representatives; (2) Absentees who have administrators, either appointed by them before their disappearance, or appointed by the courts; (3) Persons living abroad, who have managers or administrators; (4) Juridical persons, except the State and its subdivisions. Persons who are disqualified from administering their property have a right to claim damages from their legal representatives whose negligence has been the cause of prescription. (1932a) General rule: A person must have the legal capacity to acquire property or rights by the other legal modes in order that he may acquire the same by means of prescription. (Art. 1107) aliens cannot acquire lands by prescription Rule on minors and other incapacitated persons: Minors and other incapacitated persons (even though they dont have capacity to act) may acquire property or rights by prescription personally for they have juridical capacity and prescription does not require consent unlike contracts.2

Distinctions between prescription and laches Prescription Laches Applies even to imprescriptible actions (e.g. action to annul a void contract may be barred by laches) Concerned with the effect of delay A question of inequity of permitting a claim to be enforced (this inequity being founded on some subsequent change in the condition or relation of the parties) Not statutory Applies in equity Need not be specifically pleaded; court may consider it in its own initiative to prevent inequity Not based on a fixed time

Concerned with the fact of delay A question or matter of time

Statutory Applies at law Cannot be availed of unless it is especially pleaded as an affirmative allegation Based on a fixed time

Prescription as a matter of defense Burden of proof: Rests on the party laying claim to it Effect of failure to plead prescription: Failure to plead constitutes waiver of the defense and cannot be raised for the first time at the trial or on appeal General Rule: The issue of prescription is one involving evidentiary matters requiring a full-blown trial on the merits and cannot be determined in a mere motion to dismiss. Exceptions: 1. When the plaintiffs complaint on its face or the evidence he presented shows clearly that indeed the action has prescribed at the time it was filed. 2. If, before trial, a party has no means of knowing that opponents claim has already lapsed, prescription as a defense may be pleaded later as soon as the true nature of the claim is discovered.

Art. 1107. Persons who are capable of acquiring Note: Infants and insane (persons who have no property or rights by the other legal modes may discernment) can acquire prescription only through their parents, guardians, or legal representatives acquire the same by means of prescription. Minors and other incapacitated persons may acquire property or rights by prescription,
2

Juridical capacity fitness to be the subject of legal relations (inherent in every natural person and is lost only through death)

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because possession must be under claim of ownership. Art. 1109. Prescription does not run between husband and wife, even though there be a separation of property agreed upon in the marriage settlements or by judicial decree. Neither does prescription run between parents and children, during the minority or insanity of the latter, and between guardian and ward during the continuance of the guardianship. Between Husband and Wife Reason- influence or affection may often prevent one from bringing an action for prescription There are cases like legal separation when the law specifically provides for a period of prescription between husbands and wives. Art. 1110. Prescription, acquisitive and extinctive, runs in favor of, or against a married woman. (n)
Against whom prescription runs: (Arts. 1108,1110) Against whom prescription does not run: 1. Minors and other incapacitated persons who DO NOT have parents, guardians or other legal representatives (Art. 1108) 2. Absentees who DO NOT have administrators, either appointed by them before their appearance or appointed by the courts (Art. 1108) 3. Persons living abroad, who do NOT have managers or administrators (Art. 1108) 4. State and its subdivisions (only with regard to properties of public dominion) (Art. 1108) 5. Between husband and wife during the marriage even though there be a separation of property agreed upon in the marriage settlements or by judicial decree (Art. 1109) 6. Between parents and children during the minority or insanity of the latter (Art. 1109) 7. Between guardian and ward during the continuance of the guardianship (Art. 1109) 8. In favor of a co-owner or co-heir against his coowners or co-heirs as long as the co-ownership is recognized (Art. 494,par.5) 9. In an action for reconveyance when plaintiff is in possession of property to be reconveyed (Art. 523)

1. Minors and other

incapacitated persons who have parents, guardians or other legal representatives (Art. 1108)

2. Absentees who have

administrators, either appointed by them before their appearance or appointed by the courts (Art. 1108) 3. Persons living abroad, who have managers or administrators (Art. 1108) 4. Juridical persons (including state but only with regard to patrimonial property) (Art. 1108) 5. Married woman (Art. 1110)

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Effect of failure to plead prescription: Failure to plead constitutes waiver of the defense and cannot be raised for the first time at the trial or on appeal General Rule: The issue of prescription is one involving evidentiary matters requiring a full-blown trial on the merits and cannot be determined in a mere motion to dismiss. Exceptions: 1. When the plaintiffs complaint on its face or the evidence he presented shows clearly that indeed the action has prescribed at the time it was filed. 2. If, before trial, a party has no means of knowing that opponents claim has already lapsed, prescription as a defense may be pleaded later as soon as the true nature of the claim is discovered. Art. 1111. Prescription obtained by a coproprietor or a co-owner shall benefit the others. (1933) 3. It must be made by the owner of the right (hence administrator, executor, agent, etc. cannot renounce unless given SPA) 4. It must not prejudice the rights of creditors (while rights may be waived, it must not be prejudicial to the rights of a third person with a right recognized by law Art. 6, NCC) 5. The person renouncing must have knowledge of the existence of the right Kinds: 1. Express 2. Implied/Tacit when renunciation results from acts which imply the abandonment of the right acquired. Where the party acknowledges the correctness of the debt and promises to pay it after the same has prescribed and with full knowledge of the prescription, he thereby waives the benefit of prescription.

Note: But simple promise which contains new A co-owners possession which is the basis and positive promise to pay the debt which has of prescription should benefit not only himself prescribed, such as a promise to pay only onebut also the other co-owners since in cohalf or even a part payment, does not amount ownership, the possession of one is deemed to a renunciation of prescription. the possession of other co-owners (Art. 1111) Renunciation Void Under Art. 1111, it is essential that the possession of the co-owner involves the A renunciation of prescription in advance is community property. void. An agreement that the obligation arising Art. 1112. Persons with capacity to alienate from the contract shall not be subject to prescription property may renounce prescription already is not binding. obtained, but not the right to prescribe in the future. Renunciations by Representatives Prescription is deemed to have been tacitly Only persons with capacity to alienate renounced when the renunciation results from property can renounce prescription already acts which imply the abandonment of the right obtained. acquired. (1935) o Not guardians, executors, administrators Renunciation is Unilateral The renunciation of prescription is a unilateral act, and does not require the acceptance of the person to be benefited by it. Requisites: 1. The person renouncing must have capacity to alienate property (because renunciation involves the disposition of property) 2. The renunciation must refer to prescription already obtained (Art.6, NCC: rights may be waived) but NOT the right to prescribe in the future (contrary to public order or public policy) With regard to creditors(Art. 1114): Notwithstanding the express or tacit renunciation by a person of a prescription already obtained, his creditors and all other persons interested in making the prescription effective, may still plead prescription for themselves to the extent of their credit. Art. 1113. All things which are within the commerce of men are susceptible of prescription, unless otherwise provided. Property of the State or any of its subdivisions not patrimonial in character shall not be the object of prescription. (1936a)

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Object of Prescription General Rule: All things within the commerce of men may be acquired by prescription (Art. 1113) Things which are not susceptible of being appropriated cannot be acquired by prescription3. (since possession is required in prescription) property of public dominion and common things cannot be acquired by prescription Res nullius (property without an owner) is acquired by occupation and not by prescription because prescription presupposes a previous owner.

Art. 1117. Acquisitive prescription of dominion

Prescription of Ownership and Other Real Rights

and other real rights may be ordinary or extraordinary. Ordinary acquisitive prescription requires possession of things in good faith and with just title for the time fixed by law. (1940a)

Requisites of Acquisitive Prescription Capacity to acquire by prescription A thing capable by prescription Possession of the thing under certain Exceptions: conditions 1. Lands registered under the Torrens system Lapse of time provided by law. (Sec.47, PD 1529) 2. Properties of spouses, parents and children and guardians and wards under certain Kinds of Acquisitive Prescription: 1. Ordinary Acquisitive requires conditions as between themselves possession of things in good faith and with (Art.1109) just title for the time fixed by law. 3. Movables possessed through a crime (Art.1133) 2. Extraordinary Acquisitive does not require good faith and just time but is fixed for a longer period Art. 1114. Creditors and all other persons interested in making the prescription effective Requisites: may avail themselves thereof notwithstanding ORDINARY EXTRAORDINARY the express or tacit renunciation by the debtor 1. Capacity of possessor to acquire by or proprietor. (1937) prescription Creditors may Plead Prescription Even if the person bound by the obligation should renounce such prescription. But prescription pleased by one creditor does not inure to the benefit of another creditor. Art. 1115. The provisions of the present Title are understood to be without prejudice to what in this Code or in special laws is established with respect to specific cases of prescription. (1938)
2. 3. 4. 5. 6. Susceptibility of object to prescription Adverse possession of the character prescribed by law Lapse of time required by law Good faith of possessor Proof of just title

Required Period Fixed by Law movable immovable ORDINARY 4 yrs 10 yrs EXTRAORDINARY 8 yrs 30 yrs

Suppose possession begins in good faith

but is later converted to bad faith? The prescription will be extraordinary but the possession in good faith shall be computed in the proportion that the period of extraordinary prescription bears to that of ordinary prescription. Example: If the possessor had possessed for three years in good faith, before his

Art. 530: Only things and rights which are susceptible of being appropriated may be the object of possession.

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possession was converted into bad faith, the 3 years will be computed as double (6 years). Art. 1118. Possession has to be in the concept of an owner, public, peaceful and uninterrupted. (1941) Art. 1119. Acts of possessory character executed in virtue of license or by mere tolerance of the owner shall not be available for the purposes of possession. (1942) Possession fundamental basis of prescription Characteristics: 1. Concept of Owner Where the property was in the adverse, continuous and notorious possession of a buyer in the concept of owner for more than half a century, the claim over such property has already prescribed. When the possessor has never ceased to manifest with external acts his intention to exercise a right over the thing, which presupposes that he has never in fact ceased to exercise the right. Continuity is not understood in an absolute sense. Possession is uninterrupted is there has been no acts of deprivation of enjoyment of the things by a third person, or any other act which interrupts prescription. Interruption is distinct from discontinuity; the former is a positive act of third person, while the latter is a negative act or abstention on the part of the possessor himself. Art. 1120. Possession is interrupted for the purposes of prescription, naturally or civilly. (1943)

Kinds of Interruption of Possession: 1. Natural when through any cause prescription should cease for more than one Acts of a possessory character which are year merely tolerated by the possessor or which are 2. Civil produced by judicial summons to due to his license, do not constitute the possessor possession. o License- positive act of the owner in favor of Effect of Interruption the holder of the thing. All the benefits acquired so far from the o Tolerance- passive acquiescence of the possession cease; when the prescription runs owner to acts being performed by another again, it will be an entirely new one. which appear to be contrary to the rights of Distinguishes prescription from suspension of the former. suspension, Tenants cannot acquire tenanted lands by o Suspension- past period is included in prescription, nor can an antichretic creditor the computation; old possession is tacked to the land of his debtor. new (example: possession in wartime) 2. Public o when the acts of enjoyment are executed in such a manner as to be manifest or visible to all, especially to the person against whom the possession is being adversely asserted. o In order for possession to be public, it must be known to the owner of the thing.

Possession de facto lost if new

possession of another has lasted longer than 1 year Real right of possession not lost until after the lapse of 10 years.

Art. 1121. Possession is naturally interrupted when through any cause it should cease for 3. Peaceful more than one year. It is acquired and maintained without any The old possession is not revived if a new violence, physical or moral. possession should be exercised by the same The possession continues to be peaceful even adverse claimant. (1944a) if the possessor should use such force as is reasonably necessary to repel or prevent an Art. 1122. If the natural interruption is for only actual or physical invasion of the property. one year or less, the time elapsed shall be 4. Uninterrupted counted in favor of the prescription. (n)

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Art. 1123. Civil interruption is produced by judicial summons to the possessor. (1945a) Art. 1126. Against a title recorded in the Registry of Property, ordinary prescription of Art. 1124. Judicial summons shall be deemed ownership or real rights shall not take place to not to have been issued and shall not give rise the prejudice of a third person, except in virtue to interruption: of another title also recorded; and the time shall (1) If it should be void for lack of legal begin to run from the recording of the latter. solemnities; (2) If the plaintiff should desist from the As to lands registered under the Land complaint or should allow the Registration Act, the provisions of that special proceedings to lapse; law shall govern. (1949a) (3) If the possessor should be absolved from the complaint. Recorded Titles as to Third Persons In all these cases, the period of the Owner of the thing at the beginning of interruption shall be counted for the prescriptive period is not considered as a third prescription. (1946a) person within the meaning of this rule. Those who acquire their right subsequently, Effect of Recovery of Possession relying on the registration of ownership in the registry, must be considered as third persons, According to Art. 1121-1122, in case of natural and they cannot be prejudiced by the period of interruption, the old possession loses all its possession prior to the date of their acquisition. juridical effects, and even if the possession if o But such person must have acquired under reacquired, the old possession cannot be tacked to the new possession for the purpose the following conditions of prescription. That the acquisition is by onerous title. But in the case of civil interruption, there is That the acquisition is from one who, unanimity between the law and the according to the Registry, can transmit title. commentators in the view that if the possession That the acquisition is registered. is recovered, it can be connected to the time That such third person has no knowledge of that has elapsed as if it were in fact continuous, the prescription. the period of interruption is to be counted for While registered owner who executed the title the prescription. which is the basis for prescription, is not considered a third person, he is however Art. 1125. Any express or tacit recognition regarded as a third person with respect to the which the possessor may make of the owner's title executed by another who is not the right also interrupts possession. (1948) registered owner. When the title of the first transferee is not Recognition by the Possessor registered, a subsequent transferee of real right Rule: Any express or implied recognition or over the things is considered as a third person acknowledgment which the possessor may make if his title is recorded. with regard to the right of owner will also interrupt the continuity of possession. Registered Lands requisites: Adverse possession not allowed to defeat the 1. Recognition must be made by the owners right to possession of land registered possessor himself, or if made by a third under the Torrens system. person, the recognition must be authorized Prescription not allowed against owners of or ratified by the possessor hereditary successors because the latter 2. Recognition must be valid and efficacious merely step into the shoes of the decedent and in law are merely the continuation of their When the act of recognition was predecessor in interest. obtained through violence, intimidation fraud, or any other cause which vitiates Laches as regards registered property consent, it will not interrupt possession. Even a registered owner may be barred 3. Recognition must have been made before from recovering possession of property by prescription has already been obtained. virtue of laches.

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Where, however, the claim was filed within but the grantor was not the owner or could not the statutory period of prescription, recovery transmit any right. (n) therefor cannot be barred by laches. Art. 1130. The title for prescription must be true Art. 1127. The good faith of the possessor and valid. (1953) consists in the reasonable belief that the person from whom he received the thing was the owner Art. 1131. For the purposes of prescription, just thereof, and could transmit his ownership. title must be proved; it is never presumed. (1954a) (1950a) Art. 1128. The conditions of good faith required for possession in Articles 526, 527, 528, and 529 of this Code are likewise necessary for the determination of good faith in the prescription of ownership and other real rights. (1951)

A prescriptive title of real estate is not acquired

by mere possession. Under the claim of ownership, for a period of ten years, unless it was originally acquired With just title and good faith.

Good faith of possessor Requisites: 1. Possessor believed that the person from whom he received the thing was the owner thereof 2. He believed that said person could transmit his ownership 3. His belief has a reasonable basis Good faith requires a well founded belief that the person from whom title was received was himself the owner of the land, with the right to convey. And unless the contrary is shown, the possessor of the land must be presumed to be in good faith. To be in good faith, the possessor must believe that the title for his acquisition is sufficient; it is not enough that he knows of no defect in it. Good faith must exist not only at the beginning of the possession but throughout the entire period required for prescription.

Donation: Donee (possessor) must have a

well-founded belief that the donor was the owner of the property donated and had the capacity to donate the same. Art. 1129. For the purposes of prescription, there is just title when the adverse claimant came into possession of the property through one of the modes recognized by law for the acquisition of ownership or other real rights,

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void title is insufficient voidable is sufficient so long as it has not been annulled o can be basis of ordinary prescription. Title is subject to suspensive condition o Period of prescription begins to run from the fulfillment of the condition Title subject to resolutory condition o Period begins at once, without prejudice to the effect of the resolution by the condition which may later happen.

For purposes of prescription the title of the possessor must be just, true, valid and proved.

Just Title An act which has for its purpose the transmission of ownership, and which would have actually transferred ownership if the grantor had been the owner. This vice or defect is the one cured by prescription. These do not constitute a title: o Lease of things o Loan Title Must Be Proved o Deposit Exception to general rule embodied in article o All contracts which do not transmit property 541, which presumes a just title for every rights possessor in the concept of the owner. o Partition Article 541 refers only to an existing fact, that of o Compromise possession, article 1131 refers to acquisition of o Court decisions which are all declaratory but the right of ownership and therefore demands do not transmit them. grater guaranty to the existence of a title. When a possession is asserted to convert itself True Title to ownership, a new right is sought to be To be true, the title must exist actually, and not created, and the law becomes more exacting merely in the mind of the possessor. and requires proof of title. A legally non-existent title is without value. Art. 1132. The ownership of movables A simulated title is without value o But where it is only relative simulation, the prescribes through uninterrupted possession true title hidden behind the fictitious one will for four years in good faith. The ownership of personal property also suffice. o Simulated title- conceals a prohibited act, prescribes through uninterrupted possession for eight years, without need of any other cannot serve as a basis for prescription. False title- one which does not exist but is condition. actually believed by the possessor to exist. o May or may not be sufficient. (depends if error in fact or law) If the mistake of fact refers to an act of a third person, the title is sufficient for prescription. If it refers to an act of the possessor himself, is not s sufficient. If the error of law refers to the validity of the act, title is not adequate. If it refers to a fact in the application of a rule of law, there will be an adequate title. Revocable title- one in which the transferor has made a reservation by virtue of which the right of the possessor may disappear, cannot serve as a basis for prescription. Once reservation become ineffective, the period that has un can be counted for prescription. o i.e. a sale with right to repurchase. With regard to the right of the owner to recover personal property lost or of which he has been illegally deprived, as well as with respect to movables acquired in a public sale, fair, or market, or from a merchant's store the provisions of Articles 559 and 1505 of this Code shall be observed. (1955a) Art. 1133. Movables possessed through a crime can never be acquired through prescription by the offender. (1956a) Art. 1134. Ownership and other real rights over immovable property are acquired by ordinary prescription through possession of ten years. (1957a) Art. 1135. In case the adverse claimant possesses by mistake an area greater, or less than that expressed in his title, prescription shall be based on the possession. (n)

Valid title

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Constructive Possession In order that there must be no tacking of Possession upon which a prescription is based, possession, the present possessor must have not limited to the area actually occupied, but obtained his possession from the previous covers the area over which possession is owner. There must be privity between them. asserted. Tacking is possible only when there is a succession of rights between the predecessor Therefore, the are referred to by the present and the successor. article as possessed by mistake, must be deemed to include not only that actually and A mere usurper cannot invoke the possession physically occupied but also everything under of any previous possessor. constructive possession. Doctrine of constructive possession applies Different Character of Possession when the possession is under title calling for Where predecessor is in good faith, while the whole. The actual possession of part of the successor is in bad faith property is deemed to extend the whole, as o Extra-ordinary prescription shown by the limits and boundaries described Tacking of possession should be permitted. in the title. Period should be computed in the same The actual possession of a part of the property manner as where the character of the may be through a tenant. The doctrine of possession of the person changes while the constructive possession, however, does not period is running. That is the period of apply where the possession is without title. possession in good faith should be computed in the proportion that the period of Art. 1136. Possession in wartime, when the civil extraordinary prescription bears to that of courts are not open, shall not be counted in ordinary prescription. favor of the adverse claimant. Predecessor in bad faith, successor in good faith Art. 1137. Ownership and other real rights over Present possessor can claim under ordinary immovables also prescribe through prescription but in this case the possession of uninterrupted adverse possession thereof for the predecessor cannot be counted. thirty years, without need of title or of good Follows the principle stated in article 534: faith. (1959a) o One who succeeds by hereditary title shall not suffer the consequences of the wrongful When Title Void possession of the decedent, if it is not shown Even when the title of the possessor is void that he was aware of the flaws affecting it; but such as an oral donation of real property, he the effects of possession in good faith shall may acquire ownership by prescription under not benefit him except from the date of death the provisions of this article. of the decedent. Applied also to transfers of possession by Art. 1138. In the computation of time necessary act inter vivos. for prescription the following rules shall be o The present possessor however should not observed: be limited to ordinary prescription. The period (1) The present possessor may of possession of the predecessor, although in complete the period necessary for bad faith, may have been so long that it would prescription by tacking his possession be beneficial to the present possessor to to that of his grantor or predecessor in claim extraordinary prescription by tacking the interest; previous to his own possession. There is no (2) It is presumed that the present legal obstacle to this. possessor who was also the possessor at a previous time, has continued to be in possession during the intervening time, unless there is proof to the contrary; (3) The first day shall be excluded and the last day included. (1960a) Tacking of Possession

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But there is no extinctive prescription unless the period provided by law expires. Mere delay in the enforcement of a claim does not result in any reduction or loss of right, unless the full period required by law for prescription has expired. Prescription to be Pleaded Obligation subsists until he avails himself thereof, the courts of justice cannot supply the defense if the debtor himself does not do so. Right to prescription may be waived or renounced. Deemed waived- not timely raised or pleaded before or during the hearing of the case. It has been held that even if not pleaded, if it is apparent on the face of the complaint, it may be favorably considered, even after evidence is adduced. Art. 1140. Actions to recover movables shall prescribe eight years from the time the possession thereof is lost, unless the possessor has acquired the ownership by prescription for a less period, according to Articles 1132, and without prejudice to the provisions of Articles 559, 1505, and 1133. (1962a) Art. 1141. Real actions prescribe after thirty years. over immovables

Prescription of Actions
Concept of Prescription of Actions Prescription of action/limitation of action- the time within which an action may be brought or some act done to preserve the right. Legal and not natural cause of the extinguishment of obligations. Statutes of limitations o acts limiting the time within which actions shall be brought. Statutes of limitation do not confer any right of action, but are enacted to restrict the period within which the right, otherwise limited, might be asserted. o Statues of repose, the object of which is to suppress fraudulent and stale claims from springing up at great distances of time and surprising the parties of their representatives when all the proper vouchers and evidences are lost or the facts have become obscure from the lapse of time of the defective memory of death or removal of witnesses. o Not substantive right but only a matter of defense. Purpose- protect the diligent and vigilant, not those who sleep on their rights. Prescription and laches Laches and prescription are independent from each other. Prescription Laches Concerned with the effect of delay Is a matter of time Principally a question of inequity of permitting a claim to be enforced, this inequity being founded on some change of condition of the property of relation of the parties Statutory Not statutory Applies to law Applies to equity

This provision is without prejudice to what is established for the acquisition of ownership and other real rights by prescription. (1963) Action Affecting Realty Art. 1140. Actions to recover movables shall prescribe eight years from the time the possession thereof is lost, unless the possessor has acquired the ownership by prescription for a less period, according to Articles 1132, and without prejudice to the provisions of Articles 559, 1505, and 1133. (1962a) over immovables

Art. 1139. Actions prescribe by the mere Art. 1141. Real actions lapse of time fixed by law. (1961) prescribe after thirty years.

Leap Year in Period This provision is without prejudice to what is o February 28 and 29 should be counted as established for the acquisition of ownership separate days, not as one day. and other real rights by prescription. (1963) Effect of Lapse of Time Extinguishes the action. Action Affecting Realty

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While an action for reformation of instrument, such as contract of sale with pacto de retro alleged to be merely an equitable mortgage, is an action based upon a written contract which must be brought within 10 years from the time the right accrues, where, however, the accrual of such right could not be established it is more logical to apply Article 1141 because in reality the action seeks to reassert ones title of ownership over the real property, not to recover the same. Art. 1144. The following actions must be brought within ten years from the time the right of action accrues: (1) Upon a written contract; (2) Upon an obligation created by law; (3) Upon a judgment. (n)

Implied Trust When the property is registered in anothers name, an implied or constructive trust is created by the law in favour of the true owner. The action for reconveyance of the title to the Art. 1142. A mortgage action prescribes after rightful owner prescribes in ten years from the ten years. (1964a) issuance of the title. But if fraud has been committed and is the Not imprescriptible basis for action, not implied trust, the action will The fact that a mortgage is registered does not be barred after four years. make the action to foreclose it imprescriptible. Art. 1145. The following actions must be Effect of Interest commenced within six years: (1) Upon an oral contract; If the action to recover the mortgage debt itself (2) Upon a quasi-contract. (n) has prescribed, the action to recover the interest must also be prescribed. Art. 1146. The following actions must be Art. 1143. The following rights, among others instituted within four years: (1) Upon an injury to the rights of the specified elsewhere in this Code, are not plaintiff; extinguished by prescription: (2) Upon a quasi-delict; (1) To demand a right of way, regulated in Article 649; (2) To bring an action to abate a public However, when the action arises from or out of any act, activity, or conduct of any public officer or private nuisance. (n) involving the exercise of powers or authority arising from Martial Law including the arrest, Imprescriptible between Heirs and Co-Heirs detention and/or trial of the plaintiff, the same Article 494- no prescription shall run in favor of must be brought within one (1) year. (As a co-owner or co-heir so long as he expressly amended by PD No. 1755, Dec. 24, 1980.) or impliedly recognize the ownership. Applies only so long as it is admitted and presumed that the co-ownership exists. Injury to Rights Cannot be invokes when one of the co-owners One year period for petition for quo warrantoor co-heirs has possessed the property as does not apply where the plaintiff is separated exclusive owner for a period sufficient to from his employment for unjustifiable causes. acquire the property by prescription. Such unjustified separation from employment is an injury to the rights of the plaintiff and the Other Imprescriptible Action action may be brought within four years under Action by the government or government entity this Article. An action for mandamus An action to enforce an express trust Action to Fraud An action to quiet the title to property in ones Prescribes in four years from the discovery of possession the fraud An action or defense to declare a contract or judgment void ab initio Quasi-delict Action of the registered owner to recover his Four years land

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Art. 1147. The following actions must be filed within one year: (1) For forcible entry and detainer; (2) For defamation. (n) Art. 1148. The limitations of action mentioned in Articles 1140 to 1142, and 1144 to 1147 are without prejudice to those specified in other parts of this Code, in the Code of Commerce, and in special laws. (n) Art. 1149. All other actions whose periods are not fixed in this Code or in other laws must be brought within five years from the time the right of action accrues. (n) Right to Collect taxes Not presumed in the absence of clear legislation to the contrary, and where the government has not by express statutory provision provided a limitation upon its right to assess unpaid taxes, such right is imprescriptible. Art. 1150. The time for prescription for all kinds of actions, when there is no special provision which ordains otherwise, shall be counted from the day they may be brought. (1969) Time From Which Period is Computed In case where there is no special provision for such a computation, recourse must be had to the rule that the period must be counted from the day on which the corresponding action could have been instituted. It is the legal possibility of bringing the action which determined the starting point for the computation of the period. The period should not be made to retroact the date of the execution of the contract. Accrual of Cause of Action Cause of action- arises when that which should have been done is not done or that which should not have been done is done. Essential elements of a good causeo Existence of legal right in a plaintiff o With a corresponding legal duty in the defendant o Violation or breach of that right or duty with consequential injury or damage to the plaintiff, for which he may maintain an action for appropriate relief. The moment the breach of right or duty occurs, then the right of action accrues, therefore period of prescription begins to run. When a contract provides for the payment of money within a year, with the privilege of extension for another year at the option of the creditor, a delay by the debtor, or the failure of the creditor to insist upon payment, does not import a tacit renewal, and prescription will run from the end of the first year. When action is based on fraud or deceit, the period of prescription will begin to run on the date of the discovery of the fraud or deceit. Quasi-delict- the prescriptive period starts from the day the quasi delict occurred or was committed. Action is for partition and reconveyance based on implied or constructive trust- time begins from the date of the issuance of the original certificate of title. Right of the nearest relative to question the validity of a purported will or donation mortis causa does not commence until a third person claims a right under such instrument where in the meantime the intestate heir has been in possession of the properties and there was no occasion to seek judicial annulment of the instrument. Action to set aside a simulated written deed or pacto de retro sale- starts only when the alleged vendeed made known their intention by overt acts not to abide by the true agreement, and not from the date of the execution of the contract. Art. 1151. The time for the prescription of actions which have for their object the enforcement of obligations to pay principal with interest or annuity runs from the last payment of the annuity or of the interest. (1970a) Obligations With Interest Applicable only to cases where the principal debt is already due. If payment is not yet due, prescription will commence only after the maturity of debt. Existence of a past debt due mortgage was recognized by payments of interest, prescription ran only from the past payment of interest. Art. 1152. The period actions to demand obligation declared commences from the became final. (1971) for prescription of the fulfillment of by a judgment time the judgment

When Judgment becomes Final

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Trial court- upon expiration for period to appeal SC, CA- the true judgment is that entered by the clerk of court pursuant to the dispositive part of its decision, and the period of prescription is, therefore, computed from the date such judgment is entered. The period is ten years Art. 1153. The period for prescription of actions to demand accounting runs from the day the persons who should render the same cease in their functions. The period for the action arising from the result of the accounting runs from the date when said result was recognized by agreement of the interested parties. (1972) Art. 1155. The prescription of actions is interrupted when they are filed before the court, when there is a written extrajudicial demand by the creditors, and when there is any written acknowledgment of the debt by the debtor. (1973a) Filing Action in Court Interrupts extinctive prescription as to the parties defendants therein,. Filing motion for reconsideration- continues the suspension of the running of prescription period, which runs again after the court proceedings have finally been terminated. When the prescription is interrupted by a judicial demand, the full period for the prescription must be reckoned from the cessation of the interruption.

Action to Compel Accounting (joint account) Begins to run from the date of the retirement of the members from whom accounting is No Suspension demanded. It begins to run from the dissolution Although an action is started within a of a partnership when the final accounting is prescriptive period, if the plaintiff desists in the done. prosecution or judgment is unconditionally stayed for one reason or another, the running Current Accounts of the period of limitations is not suspended, Begins to run from the date of each particular The parties are left in exactly the same position term as if no action had been commenced at all. Prescriptive period- 10 years Amendment to the complaint- equivalent to a fresh suit upon a new cause of action and the Accounting has been made between the parties statute of limitation continues to run until the in their current account dealings- right of action amendment is filed. accrues and the period of prescription begins to run, on the date when the last balance was struck, and not when the business relations Written Extra-Judicial Demand terminated. Running of prescription period should be interrupted when a demand is made by the Art. 1154. The period during which the obligee creditor upon the debtor before the lapse of the was prevented by a fortuitous event from period fixed by law. enforcing his right is not reckoned against him. o Burden of proof is on the creditor. (n) Written Acknowledgment of Debt Suspension During War In extinctive prescription, the interruption Suspended by war or insurrection only when through the acknowledgment of debt of the the regular course of justice is interrupted to creditors right can only take place when such such extent that courts cannot be kept open acknowledgment is in writing. and are not within the reach of the people. It can be implied therefrom, but it must be in Courts are functioning- prescription is not writing suspended The acknowledgment must be such as to apply to a particular and specific debt to interrupt Effect of the Destruction of Judicial records prescription. Cease to run, only begin to run again on the Acknowledgment can be made by a legal date when the parties or counsel shall have representative. received notice to the effect that the records The acknowledgment of debt before period of have been reconstituted. prescription will interrupt the expiration of the period of prescription, but a mere acknowledgment of the obligation after it has

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already prescribed is not sufficient to renew the period of prescription. If the period has already expired, there must be a renunciation of the prescription already acquired, in order action may be acquired. o Mere acknowledgment of debt does not constitute renunciation of prescription already acquired. By acknowledgment of debt, the debtor may renew the obligation and interrupt the prescription so as to make it run only from the date of the acknowledgment. Other Causes that Do Not Interrupt Period Debt of a debtor Transfer of right to another person Institution of criminal action Order to stay execution of a judgment Confinement in jail Extinction of debt of one of the various joint debtors

PROPERTY REVIEWER||ATTY.MENDOZA 16 Cainday||Santiago||Morana||De Vera|| Cancino

SUMMARY: Movable Action to recover Mortgage action All other actions whose periods are not fixed in the Code Action upon a written contract Action upon an obligation created by law Action upon a judgment Action upon an oral contract Action upon a quasi-contract Action upon an injury to the rights of the plaintiff Action upon a quasi-delict Forcible entry and detainer Defamation
8 yrs from the time possession is lost

Immovable
30 yrs

Rights not extinguished by prescription: 1. Right of way 2. Action to abate a public or private nuisance

10 years Within 5 yrs from the time the right of action accrues When there is no special provision which ordains the time for prescription for all kinds of action Actions which have for their object the enforcement of obligations to pay principal with interest or annuity Actions to demand fulfillment of obligations declared by a judgment Actions to demand accounting Action arising from the result of the accounting 1 year

Reckoning Point of Computation of Period of Prescription from the day they may be brought

10 years

from the last payment of the annuity or of the interest

6 years

From the time judgment became final From the day the persons who should render the same cease in their functions From the date when said result was recognized by agreement of the interested parties

4 years

The period during which the obligee was prevented by a fortuitous event from enforcing his right is not reckoned against him. When period of prescription of actions is interrupted: 1. When they are filed before the court 2. When there is a written extrajudicial demand by the creditors 3. When there is any written acknowledgment of the debt by the debtor