Bernardo, et al., v. Bernardo et al

Full Text: http://www.lawphil.net/judjuris/juri1954/nov1954/gr_l-5872_1954.html

Facts:
On December 31, 1947, the Republic of the Philippines purchased from Roman Catholic Church the estate known as the "Capelania de Tambobong" in Malabon, Rizal, under the provisions of section 1, of Commonwealth Act No. 539. Said Act authorizes the expropriation or purchase of private lands and that lands acquired thereunder should be subdivided into lots, for resale at reasonable prices to " their bona fide tenants or occupants." Crisostomo R. Bernardo, respondent herein, applied to the Rural Progress Administration for the purchase of the lot in question. Petitioners Enrique Bernardo, et al ., contested the application and claimed preferential right to such purchase, and on January 12, 1948, the Rural Progress Administration resolved to recognize the petitioners as entitled to preference. The respondents then appealed to the Court of First Instance of Rizal, and the latter upheld their claim, and the decision was affirmed by the Court of Appeals.

Issue: 
Whether or not the petitioners are bona fide occupants of the lot in question.


Held:
No, Enrique does not come under the description of bona fide tenant or occupant employed in the statute. The term "bona fide occupant" (admittedly petitioner is not a tenant) has been defined as "one who supposes he has a good title and knows of no adverse claim" (Philips vs. Stroup, 17 Atl. 220,221); "one who not only honestly supposes himself to be vested with true title but is ignorant that the title is contested by any other person claiming a superior right to it" (Gresham vs. Ware to that of a possessor in good faith in our Civil Law (Civil Code of 1889, art. 433; new Civil Code, art. 526). The essence of the bona fides or good faith, therefore, lies in honest belief in the validity of one's right, ignorance of a superior claim, and absence of intention to over each another.
It is also in contrary that the words "bona fide occupants" employed in the Commonwealth Acts are equivalent to "actual" occupants. The first reason is that Section 7  of Act 1170 of the old Philippine Legislature, employs the terms "actual bona fide settlers and occupants", plainly indicating that "actual" and "bona fide" are not synonymous, while the Commonwealth acts deleted the term "actual" and solely used the words "bona fide occupant", thereby emphasizing the requirement that the prospective beneficiaries of the acts should be endowed with legitimate tenure. The second reason is that in carrying out its social readjustment policies, the government could not simply lay aside moral standards, and aim to favor usurpers, squatters, and intruders, unmindful of the lawful or unlawful origin and character of their occupancy. Such a policy would perpetuate conflicts instead of attaining their just solution. It is safe to say that the term "bona fide occupants" was not designed to cloak and protect violence, strategy, double dealing, or breach of trust.
The SC ruled that a person who, at the time of the acquisition of the Tambobong Estate by the Government, has been gratuitously occupying a lot therein by mere tolerance of its lessee, and who does not own the house erected on such lot, is not a "bona fide occupant" entitled to its acquisition, as the term is used in Commonwealth Act. No. 539.