Florencio Ignao v. Hon. Intermediate Appellate Court

Summary

This Supreme Court case involved a property dispute between nephew Florencio Ignao and his uncles Juan and Isidro Ignao over encroachment after partition of co-owned land. The uncles' houses encroached upon 101 square meters of Florencio's portion. The lower courts applied Article 448 of the Civil Code but erroneously ordered Florencio to sell the encroached area, depriving him of his right to choose. The Supreme Court modified the decision, holding that when co-ownership is terminated by partition and encroachment occurs in good faith, Article 448 applies, but the landowner retains the right to choose whether to appropriate the improvements with indemnity or compel the builders to buy the land. The case clarifies the proper application of Civil Code provisions on builders in good faith in post-partition scenarios.