SLIDE 1

Let’s proceed now with Art. 443, which reads as:

ART. 443. HE WHO RECEIVES THE FRUITS HAS THE OBLIGATION TO PAY THE EXPENSES MADE
BY A THIRD PERSON IN THEIR PRODUCTION, GATHERING, AND PRESERVATION. 

BUT first, take note that Art. 443 only applies to a possessor in bad faith, because if the possessor is in
good faith, he is the owner of the fruits. At the same time, he will bear also the expenses.

SLIDE 2
Second, take note also that Art. 443 only applies to Fruits already gathered, because if the fruits
are pending different Art. will apply, in which case it is Art. 449.
Article 443 of the New Civil Code contemplates a situation where the recipient of the fruits was not the
same person who incurred the expenses in connection with its production, gathering and preservation.
This may happen, for example, if the property was previously in the possession of a possessor in bad faith
and later on the true owner recovered the possession of the property from a possessor in bad faith, in such
case that third person who is the possessor in bad faith is required by law to return to the owner not only
the fruits he already received but also the fruits which the owner could have received, but on the other hand
that third person is allowed by law recover the expenses incurred by him for the Production, Gathering and
preservation.
SLIDE 3
 But take note that the Reimbursement is only limited to the payment of Expenses in the production,
gathering and preservation (PGP) of the fruits.
 In order for the production expenses to be refundable, such expenses must have the following
characteristics:
(1) that they are dedicated to the annual production and not merely for purposes of
improvement;
(2) that they be not superfluous, excessive or for luxury but rather that they be
commensurate with that required by the products.
If the foregoing requisites are complied with, the same must be refunded by the recipient of the fruits to the
one who incurred it irrespective of whether the amount of the expenses far exceed the value of the fruits.
SLIDE 4

 AGAIN, the third person who incurred the expenses is only entitled to recover those that have  
been   used   for   production, gathering, or preservation, not merely for the improvement of the property. In
 short, They must have been necessary and not luxurious or excessive, which is consistent with the
principle that no can enrich himself at the expense of another.
 WHY? because the true owner could have spent the same amount to the property.