Eden Ballatan v. Court of Appeals

Summary

This case involves a property boundary dispute among adjacent lot owners in a Quezon City subdivision where construction improvements encroached on neighboring lots due to erroneous surveys. The Supreme Court applied Civil Code Article 448 on good faith builders, recognizing that all parties constructed their improvements believing they were within their property boundaries. The Court modified the Court of Appeals decision by requiring compensation at current market value rather than historical taking value, and established a framework giving landowners options to either purchase encroaching improvements or sell the encroached land portion. The decision demonstrates the application of equitable principles under the Civil Code to resolve complex multi-party property encroachment disputes while protecting the rights of both landowners and good faith builders.