POSSESSOR IN GOOD FAITH ARTICLE 546 Rights of possessor (in the concept of owner) as to NECESSARY EXPENSES Rights of possessor

(in the concept of owner) as to USEFUL EXPENSES 1. Refund 2. Retain premises till paid (Art. 546) 1. Right to reimbursement of either: a. The amount spent b. The increase in value at the owners option (Art. 546) 2. Right of retention till paid (Art. 546) 3. Right of removal provided no substantial damage/injury is caused to the principal UNLESS the winner (owner or lawful possessor) makes use of the useful improvement In general, no right of refund or retention BUT can remove if no substantial injury is caused. The OWNER or LAWFUL POSSESSOR has the option to allow: 1. Possessor to remove 2. To retain for himself (owner) the ornament by refunding the amount spent (Art. 548)

POSSESSOR IN BAD FAITH 1. Refund only Not entitled to any right (Arts. 549, 449, 450, 451) [Even if removal is possible without substantial injury, possessor in BF has no right to make the removal].

ARTICLE 548 Rights of possessor (in the concept of owner) as to LUXURIOUS OR ORNAMENTAL EXPENSES

In general, no right of refund or retention BUT can remove if no substantial injury is caused. The OWNER or LAWFUL POSSESSOR has the option to allow: 1. Possessor to remove 2. To retain for himself (owner) the ornament by refunding its value at the time the owner enters into possession spent (Art. 548)

ARTICLE 549 Rights of possessor (in the concept of owner) as to FRUITS

1. Gathered or severed or harvested fruits are his own (Art. 544) 2. Pending or ungathered fruits pro-rating between possessor and owner of expenses, net harvest and charges (Art. 545)

1. Gathered fruits must return the: i. value of fruits already received; and ii. value of fruits which the legitimate possessor ( not the possessor in BF) could have received with due care and diligence MINUS necessary expenses for cultivation, gathering and harvesting (Art. 549)

2. Pending or ungathered fruits no rights at all, not even to expenses for cultivation because by accession, all should belong to the owner without indemnity. ARTICLE 552 Liability for LOSS DETERIORATION or 1. Before receipt of judicial summons not liable 2. After receipt of judicial summons: a. Loss or deterioration thru fortuitous event - not liable b. Thru fraudulent intent or negligence liable Liable whether - Before or after judicial summons - Due to fortuitous event or not

ARTICLE 559 When Possession of a If possession of movable is acquired in BF If possession of movable is acquired in GF movable is equivalent to NEVER equivalent to title 1. As a GR, is equivalent to a title title BUT owner must REIMBURSE if he In this case, owner may recover the wants to recover movable thing without reimbursing the possessor 2. Is NOT equivalent to title if the owner (exception to the GR): a. Had LOST it; or b. Had been UNLAWFULLY DEPRIVED of it (e.g. stolen) In these 2 situations, owner may recover the movable without reimbursing the possessor UNLESS, the possessor acquired it in: i. In GOOD FAITH and ii. At a PUBLIC SALE (e.g. auction sale) In this case, owner has to reimburse the possessor if he wants to recover the movable thing

Note:

OWNER CANNOT RECOVER EVEN IF HE OFFERS TO REIMBURSE: If possessor had acquired it in GF by purchase (WON owner had lost it or been unlawfully deprived) from merchants store, or in fairs or markets.