Pen Development Corporation v. Martinez Leyba

Summary

This Supreme Court case involves a property dispute between Martinez Leyba, Inc. and Las Brisas Resort Corporation over overlapping land titles in Antipolo, Rizal. Martinez owned three parcels registered in 1915, while Las Brisas acquired adjacent land in 1967 under a title registered in 1973. A DENR-approved survey revealed Las Brisas encroached on 3,454 square meters of Martinez's property with various structures. Despite receiving multiple demand letters starting in 1968, Las Brisas continued construction. The Supreme Court affirmed lower court decisions declaring Las Brisas a builder in bad faith, ordering removal of encroaching structures without indemnity, and awarding nominal damages. The Court emphasized that earlier-registered titles prevail in overlapping situations, and that registered land owners have imprescriptible rights against encroachers. The decision reinforces the indefeasibility of Torrens titles and the severe consequences for builders who continue construction despite notice of encroachment.