Sagrada Orden vs. 91 Phil. 503 (1952)

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ObliConDigest - Sagrada Orden Vs. 91 Phil.

503 (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 brought 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 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, namely, 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 Alien Property Administration. Neither was there
any negligence on its part.

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