Privatization v. Legaspi Towers 300

Summary

This case involves a property dispute over whether a generating set and sump pumps constitute an easement. Caruff Development Corporation originally owned adjacent properties where it built Legaspi Towers 300 condominium and placed utilities on a separate lot. After loan default and foreclosure, the government acquired the utility-burdened property through a compromise agreement stating transfer was 'free from liens and encumbrances.' Legaspi Towers claimed easement rights over the utilities. The Supreme Court reversed lower courts, ruling no easement existed since both properties were originally owned by Caruff when utilities were installed, and the compromise agreement explicitly conveyed property free of encumbrances. The Court ordered removal of utilities and payment of reasonable rent based on unjust enrichment principles, demonstrating that clear contractual language governs property transfers and prevents implied easements contrary to express agreements.