- Petitioner
- Pelicula Sabido
- Respondent
- The Honorable Intermediate Appellate Court
- Citation
- G.R. No. 73418
- Court
- Supreme Court
- Division
- Third Division
- Ponente
- Gutierrez, Jr., J.
- Decided
- September 20, 1988
Summary
This case involves a complex property dispute over Lots B and D where petitioners Sabido and Rances obtained a final judgment declaring them owners in 1969. During execution, respondent Sta. Ana was found occupying Lot B, claiming ownership through purchase from Lagarto. The Supreme Court initially remanded the case to determine privity and boundary issues. After extensive proceedings, the trial court found privity between Sta. Ana and the original losing parties (Dasals), meaning Sta. Ana was bound by the adverse judgment. The Intermediate Appellate Court erred in granting Sta. Ana the option to pay for the disputed area instead of demolition. The Supreme Court reversed, holding that as a party in privity with losing defendants, Sta. Ana is a builder in bad faith under the Civil Code and must remove his improvements without compensation, having no right to retention or reimbursement. The decision reinforces the principle that privity binds parties to final judgments and limits builder's rights to those acting in good faith.