The Davao Saw Mill Company leased land and erected a building to house machinery for its sawmill business. The lease agreement specified that machinery would remain the company's personal property but buildings and improvements would transfer to the landowner. When Davao Saw Mill defaulted on a debt, the machinery was seized. The court ruled the machinery mounted on cement foundations was personal property as the company had treated it as such and a temporary rights holder like a lessee cannot immobilize property to transfer ownership without the landowner's consent.
The Davao Saw Mill Company leased land and erected a building to house machinery for its sawmill business. The lease agreement specified that machinery would remain the company's personal property but buildings and improvements would transfer to the landowner. When Davao Saw Mill defaulted on a debt, the machinery was seized. The court ruled the machinery mounted on cement foundations was personal property as the company had treated it as such and a temporary rights holder like a lessee cannot immobilize property to transfer ownership without the landowner's consent.
The Davao Saw Mill Company leased land and erected a building to house machinery for its sawmill business. The lease agreement specified that machinery would remain the company's personal property but buildings and improvements would transfer to the landowner. When Davao Saw Mill defaulted on a debt, the machinery was seized. The court ruled the machinery mounted on cement foundations was personal property as the company had treated it as such and a temporary rights holder like a lessee cannot immobilize property to transfer ownership without the landowner's consent.
The Davao Saw Mill Company leased land and erected a building to house machinery for its sawmill business. The lease agreement specified that machinery would remain the company's personal property but buildings and improvements would transfer to the landowner. When Davao Saw Mill defaulted on a debt, the machinery was seized. The court ruled the machinery mounted on cement foundations was personal property as the company had treated it as such and a temporary rights holder like a lessee cannot immobilize property to transfer ownership without the landowner's consent.
NO. 40411 peroprties personal is considered. AUGUST 7, 1935 MALCOLM, J. The distinction rests, as pointed out by Demolombe, upon Vicky Em | Group 8 the fact that one only having a temporary right to the possession or enjoyment of property is not presumed by PETITONERS/appellant: Davao Saw Mill Co., Inc the law to have applied movable property belonging to him RESPONDENTS/appellee: Aproniano G. Castillo and Davao Light & so as to deprive him of it by causing it by an act of Power Co., Inc, defendants and appellees. immobilization to become the property of another.
Machinery which is movable in its nature only becomes
TOPIC: (as stated in the syllabus) immobilized when placed in a plant by the owner of the Movable or Personal Properties property or plant, but not when so placed by a tenant, a usufructuary, or any person having only a temporary right, unless such person acted as the agent of the owner. CASE SUMMARY: Davao Sawmill leased a building where they used machines for their business. They mounted the machines on foundations of cement. The company also entered into a contract DISPOSITIVE PORTION:Judgement affirmed with the landowners which stipulated that once the lease expires, all the improvements and buildings introduced and erected by the party of the second part [lessor] shall pass to the exclusive owvership to PROVISIONS: Article 334, paragraphs 1 and 5, of the Civil Code states that the party of the first part [lesee] ,because of the that, the main issue real property consists of- of the case involves classifying as machines personal or real 1. Land, buildings, roads and constructions of all kinds adhereing to property. the soil; 5. Machinery, liquid containers, instruments or implements intended by TERMS: n/a no unfamiliar terms the owner of any building or land for use in connection with any industry or trade being carried on therein and which are expressly PRECEDENTS: n/a adapted to meet the requirements of such trade or industry FACTS: Davao Sawmill operates a sawmill in the sitio of Maa, barrio of section 334 of the Porto Rican Code, Things may be immovable either Tigatu. However, the land where the company conducts by their own nature or by their destination or the object to which they are applicable.' busines is owned by another person. The company erected a a building which housed their machinery on this land.
The lease contract between the company and the landowner
states: "That on the expiration of the period agreed upon, all the improvements and buildings introduced and erected by the party of the second part shall pass to the exclusive ownership of the party of the first part without any obligation on its part to pay any amount for said improvements and buildings; also, in the event the party of the second part should leave or abandon the land leased before the time herein stipulated, the improvements and buildings shall likewise pass to the ownership of the party of the first part asthough the time agreed upon had expired: Provided, however, That the machineries and accessories are not included in the improvements which will pass to the party of the first part on the expiration or abandonment of the land leased.
In another action, Davao Light and Power Co was the plaintiff
and Davao Saw Mill was defendant and the judgement favored the plaintiff. A writ of execution was rendered against Saw Mill and the properties in question were levied upon by the sherriff. Davao Light was a bidder in the auction and took possession of the properties. ISSUES:
Does the machinery placed and mounted on the
foundations of cement constitute personal property?
RULING: 1st Issue: affirmed Davao Saw Mill on multiple occastions treated the machinery as personal property by executing chattel mortgages in favor of 3rd persons (which includes Davao
