VILLA SI VS. GARCIA G.R. No. 190106 January 15, 2014

Facts: Villasi engaged the services of respondent Fil-Garcia Construction, Inc. (FGCI) to construct a seven-storey condominium building located Cubao, Quezon City. For failure of Villasi to fully pay the contract price despite several demands, FGCI initiated a suit for collection of sum of money. Villasi filed an answer specifically denying the material allegations of the complaint. Contending that FGCI has no cause of action against her, Villasi averred that she delivered the total amount of P7,490,325.10 to FGCI but the latter accomplished only 28% of the project.To enforce her right as prevailing party, Villasi filed a Motion for Execution. To satisfy the judgment, the sheriff levied on a building located Kalayaan Avenue, Quezon City. While the building was declared for taxation purposes in the name of FGCI, the lots in which it was erected were registered in the names of the Spouses Garcia. The Spouses Garcia argued that the building covered by the levy was mistakenly assessed by the City Assessor in the name of FGCI and that it could not be levied upon not being owned by the judgment debtor.

Issue: Whether the general rule on accession can be applied in the case at bar

Ruling: While it is a horn-book doctrine that the accessory follows the principal, that is, the ownership of the property gives the right by accession to everything which is produced thereby, or which is incorporated or attached thereto, either naturally or artificially, such rule is not without exception. In cases where there is a clear and convincing evidence to prove that the principal and the accessory are not owned by one and the same person or entity, the presumption shall not be applied and the actual ownership shall be upheld.

When there are factual and evidentiary evidence to prove that the building and the lot on which it stands are owned by different persons, they shall be treated separately. As such, the building or the lot, as the case may be, can be made liable to answer for the obligation of its respective owner.