GABOYA V. CUI- Usufruct

FACTS:

Don Mariano sold his 2 lots to two of his children. Later on, he and his children became co-owners of the property. Don Mariano executed a deed authorizing the children to apply for a loan w/ mortgage with a stipulation reserving his right to the fruits of the land. The children then constructed a building on the land and collected rent from the lessee thereof. Much later, when Don Mariano died, his estate was claiming the fruits of the building.

ISSUE:

Whether or not Don Mariano had a right to fruits of the building?

RULING: NO.

The deed expressly reserved only to his right to the fruits of the land. He only owned the rent for the portion of land occupied by the building; thus, the estate could only claim the rent on that piece of land and not on the entire parcel of land. The children are entitled to the rents of the building. (A usufruct on the land may be separate from the building.

There should be no rescission of the contract coz the exact amount of rent due and owing to the Don Mariano’s estate is still unliquidated and undetermined. The trial court has the discretion to grant the debtor (children) a period within which to pay the rental income from the portion of land owned by the building because the same has not yet been determined. Article 1191 of the Civil Code grants the right to rescind but subject to the period that the court will grant.

Moreover, on the issue of co-ownership, the court held that a co-owner cannot simultaneously be a usufructuary of the same land owned.