Kasilag versus Rodriguez Case Digest/ Brief 69 Phil 217

PROCEDURAL FACTS: This is an appeal taken by the defendant-petitioner from the decision of the Court of Appeals which modified that rendered by the court of First Instance of Bataan. The said court held: that the contract is entirely null and void and without effect; that the plaintiffs-respondents, then appellants, are the owners of the disputed land, with its improvements, in common ownership with their brother Gavino Rodriguez, hence, they are entitled to the possession thereof; that the defendant-petitioner should yield possession of the land in their favor, with all the improvements thereon and free from any lien
SUBSTANTIVE FACTS: The parties entered into a contract of loan to which has an accompanying accessory contract of mortgage. The executed accessory contract involved the improvements on a piece land, the land having been acquired by means of homestead. P for his part accepted the contract of mortgage.

Believing that there are no violations to the prohibitions in the alienation of lands P, acting in good faith took possession of the land. To wit, the P has no knowledge that the enjoyment of the fruits of the land is an element of the credit transaction of Antichresis.

ISSUE: Whether or not P is deemed to be a possessor in good faith of the land, based upon Article 3 of the New Civil Code as states “Ignorance of the law excuses no one from compliance therewith,” the P’s lack of knowledge of the contract of antichresis.

HELD: The accessory contract of mortgage of the improvements of on the land is valid. The verbal contract of antichresis agreed upon is deemed null and void.

REASONING: Sec 433 of the Civil Code of the Philippines provides “Every person who is unaware of any flaw in his title or in the manner of its acquisition by which it is invalidated shall be deemed a possessor of good faith.” And in this case, the petitioner acted in good faith. Good faith maybe a basis of excusable ignorance of the law, the petitioner acted in good faith in his enjoyment of the fruits of the land to which was done through his apparent acquisition thereof.


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