Case Summary (G.R. No. 180808)
Petitioner
Spouses Abraham and Melchora Ermino.
Respondent
Golden Village Homeowners Association, Inc., represented by Leticia C. Inukai.
Key Dates
August 12 & September 10, 1995 – Heavy rains causing flood damage;
December 30, 2003 – RTC decision;
October 9, 2007 – CA decision;
August 15, 2018 – Supreme Court decision.
Applicable Law
1987 Philippine Constitution; Civil Code (Articles 20, 21, 430, 613, 627, 637); Water Code (Article 50); jurisprudence on negligence and easements.
Facts
Continuous heavy rainfall caused runoff and debris from Hilltop City Subdivision to destroy Spouses Ermino’s fence, furniture, appliances, and automobile. Spouses Ermino sued E.B. Villarosa for negligent development (failure to construct retaining walls and follow environmental rules) and sued GVHAI for replacing a steel-grille gate with a concrete fence that allegedly diverted water into their property.
Ruling of the Regional Trial Court
The RTC found both E.B. Villarosa and GVHAI jointly and severally liable for damages, awarding Spouses Ermino actual damages for house (P561,535.53), car (P7,664.53), and litigation expenses, and ordering GVHAI to modify its fence. Moral and exemplary damages were denied.
Ruling of the Court of Appeals
On GVHAI’s appeal, the CA absolved GVHAI of liability, holding that (a) GVHAI validly exercised proprietary rights in erecting the concrete fence without malice or negligence; and (b) no legal obligation existed for GVHAI, a lower estate, to admit water beyond natural flow.
Issue
Whether GVHAI can be held liable for diversion of water and damage to Spouses Ermino’s property.
Supreme Court’s Ruling
Affirming the CA, the Supreme Court held that GVHAI acted within its proprietary rights and lacked malice or negligence, while liability rests solely with E.B. Villarosa for altering the natural flow through bulldozing and failure to provide flood controls.
Exercise of Proprietary Rights by GVHAI
Under Civil Code Article 430, an owner may enclose land without detriment to existing servitudes. GVHAI’s replacement of a steel grille with a concrete fence was aimed at security, not to obstruct natural water flow. Absent conscious intent to harm or failure to exercise ordinary care, no tort liability arises under Articles 20 and 21.
Easements of Waters and Servitude
Articles 637 (Civil Code) and 50 (Water Code) impose on lower estates the duty to receive naturally descending waters and debris, prohibiting works that impede such flow. Servitudes of water are real rights; the dominant estate (Hilltop City) may
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Facts and Antecedent Proceedings
- Spouses Abraham and Melchora Ermino reside in Alco Homes subdivision, Barangay Carmen, Cagayan de Oro City, immediately below Golden Village Subdivision and Hilltop City Subdivision.
- Prior to August 12 and September 10, 1995, heavy continuous rains caused a large volume of water to flow from Hilltop City Subdivision (the highest estate) through Golden Village and Alco Homes (the lower estates).
- The floodwaters struck the Erminos’ house, damaging their fence, furniture, appliances, and automobile.
- The Erminos filed a complaint for damages against:
- E.B. Villarosa & Partners Co., Ltd. (developer of Hilltop City Subdivision), for negligent failure to construct retaining walls or flood-control devices in violation of DENR rules;
- Golden Village Homeowners Association, Inc. (GVHAI), for constructing a concrete fence in place of a steel grille gate, allegedly diverting waters to Alco Homes.
- The Erminos sought joint and several liability of both defendants for:
- ₱500,000 actual damages;
- ₱400,000 moral damages;
- ₱100,000 exemplary damages;
- attorneys’ fees and litigation costs.
- E.B. Villarosa contended the flooding was fortuitous and aggravated by GVHAI’s fence.
- GVHAI argued its concrete fence was a valid exercise of proprietary rights to secure its subdivision, blamed E.B. Villarosa alone for denuding Hilltop City and failing to provide precautions, and denied liability.
Ruling of the Regional Trial Court
- The RTC held both E.B. Villarosa and GVHAI jointly and severally liable for the Erminos’ property damage.
- Consolidated award to the Erminos:
- ₱561,535.53 for house damage (including attorneys’ fees);
- ₱7,664.53 for car damage;
- ₱1,528.00 for medical and consultation fees and relat