Title
Ballatan vs. Court of Appeals
Case
G.R. No. 125683
Decision Date
Mar 2, 1999
Dispute over 42 sq. m. encroachment on residential land in Malabon; good faith presumed, value fixed at payment time; erroneous survey liability upheld.

Case Digest (G.R. No. 125683)
Expanded Legal Reasoning Model

Facts:

  • Parties, properties, and construction timeline
    • Petitioners Eden Ballatan and spouses Betty Martinez and Chong Chy Ling own Lot No. 24 (414 sqm) in Araneta University Village, Malabon.
    • Respondent Gonzalo Go, Sr. owns Lots Nos. 25 (415 sqm) and 26 (313 sqm); his son Winston Go built on Lot No. 25.
    • Respondent Li Ching Yao owns Lot No. 27 (417 sqm). Li built in 1982, Winston Go in 1983, and Ballatan in 1985.
  • Discovery of encroachment and surveys
    • During Ballatan’s 1985 construction, her contractor observed that Go’s fence and pathway encroached upon Lot 24’s eastern boundary.
    • Engineer Jose N. Quedding (AIA surveyor) conducted:
      • A 1983 verification survey – boundaries “proper.”
      • A February 28, 1985 survey – Lot 24 short by a few meters; Lot 27 oversized by 2 m; no explanation for Lot 24’s loss.
      • A June 2, 1985 relocation survey – Lot 24 lost ~25 sqm; Lot 26 lost 3 sqm (gained by Lot 27); Lots 25/26 net zero change; overall 42 sqm shift westward.
  • Barangay proceedings and trial court decision
    • Ballatan demanded removal of Go’s improvements on June 10, 1985; demand refused; barangay conciliation failed.
    • April 1, 1986 – Ballatan filed Civil Case No. 772-MN (accion publiciana) before RTC Malabon, Branch 169. Go’s answer impleaded AIA, Quedding, and Li as third-party defendants.
    • August 23, 1990 – RTC ruled for Ballatan:
      • Order to demolish and remove improvements; vacate and deliver possession of encroached area.
      • Payment to Ballatan: ₱7,800 (survey expenses), ₱5,000 (transportation), attorney’s fees (25% of market value at execution), costs.
      • Dismissal of third-party complaint against AIA, Quedding, and Li.
  • Court of Appeals decision (March 25, 1996)
    • Affirmed dismissal as to AIA; reinstated third-party complaints against Quedding and Li.
    • Modified relief: instead of demolition, ordered payment of reasonable value of encroached areas at time of taking—Go pays Ballatan for 42 sqm, Li pays Go for 37 sqm; Quedding to pay Go ₱5,000 attorney’s fees; remand to fix values.

Issues:

  • Application of equity and valuation date
    • Whether the CA erred by applying “equitable solutions” disregarding petitioners’ Torrens rights.
    • Whether the CA should have fixed value at time of payment instead of time of taking.
  • Jurisdiction over third-party complaint
    • Whether failure to pay docket and filing fees deprived trial court and CA of jurisdiction over Go’s third-party complaint.
  • Recovery of necessary expenses
    • Whether petitioners were wrongly denied recovery of necessary expenses for protecting their rights.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster—building context before diving into full texts.