Possession by Tolerance: When a Landowner Can Eject a Builder in Bad Faith

TL;DR

The Supreme Court ruled that a landowner who initially tolerates another’s building on their property can later file an unlawful detainer suit to eject the builder once the landowner demands the property’s return. This decision underscores that initial tolerance doesn’t grant permanent rights to the occupant, and when the owner needs the property, the occupant’s refusal to leave makes their possession unlawful, justifying an ejectment action. This case clarifies the rights of property owners and the limits of permissive use, ensuring landowners can reclaim their property when needed.

When Tolerance Turns Tenancy: Can a Landowner Reclaim Property Occupied by Another’s Building?

This case revolves around a dispute between Ruben Santos and the spouses Tony and Mercy Ayon concerning land ownership and the right to possess a portion of property occupied by a building. Santos, the registered owner of three lots, claimed the Ayon spouses’ building encroached on his land. Initially, Santos tolerated the Ayons’ use of the building, but later demanded they vacate when he needed the property. The Ayons refused, leading Santos to file an action for unlawful detainer. The central legal question is whether Santos’s initial tolerance prevented him from later seeking the Ayons’ eviction through an action for unlawful detainer.

The Municipal Trial Court in Cities (MTCC) initially ruled in favor of Santos, ordering the Ayons to vacate the property and pay rent. The Regional Trial Court (RTC) affirmed this decision. However, the Court of Appeals (CA) reversed, stating that Santos should have filed an accion publiciana in the RTC, a plenary action to recover the right of possession, instead of an unlawful detainer case in the MTCC. The CA reasoned that the Ayons were already in possession when Santos bought his lots, and there was no proof that Santos’s predecessor-in-interest had tolerated their possession. The Supreme Court disagreed with the Court of Appeals.

The Supreme Court emphasized that the jurisdiction of a court is determined by the allegations in the complaint. In ejectment cases, the complaint must show either forcible entry or unlawful detainer. Unlawful detainer arises when possession, initially lawful, becomes unlawful due to the expiration or termination of the right to possess. Section 1, Rule 70 of the 1997 Rules of Civil Procedure defines the scope, stating that a person against whom possession of any land or building is unlawfully withheld after the expiration or termination of the right to hold possession, may bring an action in the proper Municipal Trial Court.

The Court highlighted the distinction between forcible entry and unlawful detainer. Forcible entry involves illegal possession from the beginning, acquired through force, intimidation, or stealth. Unlawful detainer, on the other hand, involves initially lawful possession that becomes unlawful upon the termination of a right to possess. In this case, Santos’s complaint clearly alleged that the Ayons occupied his property through his tolerance and that he demanded they vacate the premises when he needed the property, which they refused. This refusal transformed their tolerated possession into unlawful withholding, making an action for unlawful detainer appropriate.

The Court referenced its earlier ruling in Roxas vs. Court of Appeals, which states that a person who occupies another’s land at their tolerance is bound by an implied promise to vacate upon demand, and failing to do so, an ejectment action is the proper remedy. The Ayons’ argument that they possessed the property before Santos acquired it was deemed irrelevant because the issue was whether their possession was initially tolerated and subsequently became unlawful upon Santos’s demand. The critical point was that Santos, as the owner, had the right to terminate the tolerance and reclaim his property.

Therefore, the Supreme Court held that the MTCC correctly assumed jurisdiction over Santos’s complaint for unlawful detainer. The Court of Appeals erred in reversing the MTCC and RTC decisions. By tolerating the Ayons’ occupancy initially, Santos did not forfeit his right to reclaim his property when he needed it. The Ayons’ refusal to vacate after demand constituted unlawful detainer, entitling Santos to seek their eviction through the proper legal channels. This decision reinforces the principle that possession by tolerance is not equivalent to a permanent right and can be terminated by the landowner at any time.

FAQs

What was the key issue in this case? The key issue was whether a landowner, who initially tolerated another’s occupancy of their property, could later file an action for unlawful detainer to eject the occupant after demanding the property’s return.
What is unlawful detainer? Unlawful detainer is a legal action to recover possession of property from someone who initially had lawful possession but whose right to possess has expired or been terminated.
What is the difference between forcible entry and unlawful detainer? Forcible entry involves illegal possession from the beginning, acquired through force, intimidation, or stealth, while unlawful detainer involves initially lawful possession that becomes unlawful upon termination of the right to possess.
What does it mean to occupy property by tolerance? Occupying property by tolerance means the owner allows another person to use the property without any formal agreement, creating an implied promise that the occupant will vacate upon demand.
Can a landowner terminate possession by tolerance? Yes, a landowner can terminate possession by tolerance at any time by demanding that the occupant vacate the property, after which the occupant’s continued possession becomes unlawful.
What court has jurisdiction over unlawful detainer cases? The Metropolitan Trial Courts, Municipal Trial Courts, and Municipal Circuit Trial Courts have jurisdiction over unlawful detainer cases.
What is an accion publiciana? An accion publiciana is a plenary action to recover the better right of possession, which is typically filed in the Regional Trial Court.

In conclusion, the Supreme Court’s decision in this case clarifies the rights and obligations of landowners and occupants in situations involving possession by tolerance. This ruling underscores that landowners retain the right to reclaim their property, even after allowing others to occupy it, and that occupants must respect the landowner’s demand to vacate.

For inquiries regarding the application of this ruling to specific circumstances, please contact Atty. Gabriel Ablola through gaboogle.com or via email at connect@gaboogle.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Ruben Santos vs. Spouses Tony Ayon and Mercy Ayon, G.R. NO. 137013, May 06, 2005

About the Author

Atty. Gabriel Ablola is a member of the Philippine Bar and the creator of Gaboogle.com. This blog features analysis of Philippine law, covering areas like Maritime Law, Corporate Law, Taxation Law, and Constitutional Law. He also answers legal questions, explaining things in a simple and understandable way. For inquiries or legal queries, you may reach him at connect@gaboogle.com.

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