Frederic de Backer v. Juana F. Shermer Joined By Her Husband Raymond Shermer

Summary

Foreign nationals Frederic De Backer and Pierre Zappavigna purchased land in Siargao to build Kalinaw Resort. After a boundary meeting with landowner Juana Shermer and other stakeholders, they began construction believing they were within their property boundaries. However, Juana discovered they had encroached 1,653 square meters of her adjacent lot and repeatedly demanded they stop construction, which they ignored. The RTC initially found them builders in good faith due to the boundary meeting, but the Court of Appeals reversed this, declaring them builders in bad faith for continuing construction despite knowledge of encroachment. The Supreme Court affirmed, ruling that their awareness of the intrusion since 2006 yet continued construction until 2009 demonstrated bad faith. Under Civil Code provisions, Juana can appropriate the structures without compensation, demand their removal, or compel payment of land value, plus damages. The case establishes that builders who continue construction despite notice of encroachment are in bad faith and forfeit protection under the Civil Code.