4. Prescription

C. Prescription (Civil Code, arts. 1106-1155)

Prescription (Civil Code, arts. 1106-1155)

PRESCRIPTION

CHAPTER 1

General Provisions

Article 1106. By prescription, one acquires ownership and other real rights through the lapse of time in the manner and under the conditions laid down by law.

In the same way, rights and actions are lost by prescription. (1930a)

Article 1107. Persons who are capable of acquiring property or rights by the other legal modes may acquire the same by means of prescription.

Minors and other incapacitated persons may acquire property or rights by prescription, either personally or through their parents, guardians or legal representatives. (1931a)

Article 1108. Prescription, both acquisitive and extinctive, runs against:

(1) Minors and other incapacitated persons who have parents, guardians or other legal representatives;

(2) Absentees who have administrators, either appointed by them before their disappearance, or appointed by the courts;

(3) Persons living abroad, who have managers or administrators;

(4) Juridical persons, except the State and its subdivisions.

Persons who are disqualified from administering their property have a right to claim damages from their legal representatives whose negligence has been the cause of prescription. (1932a)

Article 1109. Prescription does not run between husband and wife, even though there be a separation of property agreed upon in the marriage settlements or by judicial decree.

Neither does prescription run between parents and children, during the minority or insanity of the latter, and between guardian and ward during the continuance of the guardianship. (n)

Article 1110. Prescription, acquisitive and extinctive, runs in favor of, or against a married woman. (n)

Article 1111. Prescription obtained by a co-proprietor or a co-owner shall benefit the others. (1933)

Article 1112. Persons with capacity to alienate property may renounce prescription already obtained, but not the right to prescribe in the future.

Prescription is deemed to have been tacitly renounced when the renunciation results from acts which imply the abandonment of the right acquired. (1935)

Article 1113. All things which are within the commerce of men are susceptible of prescription, unless otherwise provided. Property of the State or any of its subdivisions not patrimonial in character shall not be the object of prescription. (1936a)

Article 1114. Creditors and all other persons interested in making the prescription effective may avail themselves thereof notwithstanding the express or tacit renunciation by the debtor or proprietor. (1937)

Article 1115. The provisions of the present Title are understood to be without prejudice to what in this Code or in special laws is established with respect to specific cases of prescription. (1938)

Article 1116. Prescription already running before the effectivity of this Code shall be governed by laws previously in force; but if since the time this Code took effect the entire period herein required for prescription should elapse, the present Code shall be applicable, even though by the former laws a longer period might be required. (1939)

CHAPTER 2

Prescription of Ownership and Other Real Rights

Article 1117. Acquisitive prescription of dominion and other real rights may be ordinary or extraordinary.

Ordinary acquisitive prescription requires possession of things in good faith and with just title for the time fixed by law. (1940a)

Article 1118. Possession has to be in the concept of an owner, public, peaceful and uninterrupted. (1941)

Article 1119. Acts of possessory character executed in virtue of license or by mere tolerance of the owner shall not be available for the purposes of possession. (1942)

Article 1120. Possession is interrupted for the purposes of prescription, naturally or civilly. (1943)

Article 1121. Possession is naturally interrupted when through any cause it should cease for more than one year.

The old possession is not revived if a new possession should be exercised by the same adverse claimant. (1944a)

Article 1122. If the natural interruption is for only one year or less, the time elapsed shall be counted in favor of the prescription. (n)

Article 1123. Civil interruption is produced by judicial summons to the possessor. (1945a)

Article 1124. Judicial summons shall be deemed not to have been issued and shall not give rise to interruption:

(1) If it should be void for lack of legal solemnities;

(2) If the plaintiff should desist from the complaint or should allow the proceedings to lapse;

(3) If the possessor should be absolved from the complaint.

In all these cases, the period of the interruption shall be counted for the prescription. (1946a)

Article 1125. Any express or tacit recognition which the possessor may make of the owner's right also interrupts possession. (1948)

Article 1126. Against a title recorded in the Registry of Property, ordinary prescription of ownership or real rights shall not take place to the prejudice of a third person, except in virtue of another title also recorded; and the time shall begin to run from the recording of the latter.

As to lands registered under the Land Registration Act, the provisions of that special law shall govern. (1949a)

Article 1127. The good faith of the possessor consists in the reasonable belief that the person from whom he received the thing was the owner thereof, and could transmit his ownership. (1950a)

Article 1128. The conditions of good faith required for possession in articles 526, 527, 528, and 529 of this Code are likewise necessary for the determination of good faith in the prescription of ownership and other real rights. (1951)

Article 1129. For the purposes of prescription, there is just title when the adverse claimant came into possession of the property through one of the modes recognized by law for the acquisition of ownership or other real rights, but the grantor was not the owner or could not transmit any right. (n)

Article 1130. The title for prescription must be true and valid. (1953)

Article 1131. For the purposes of prescription, just title must be proved; it is never presumed. (1954a)

Article 1132. The ownership of movables prescribes through uninterrupted possession for four years in good faith.

The ownership of personal property also prescribes through uninterrupted possession for eight years, without need of any other condition.

With regard to the right of the owner to recover personal property lost or of which he has been illegally deprived, as well as with respect to movables acquired in a public sale, fair, or market, or from a merchant's store the provisions of articles 559 and 1505 of this Code shall be observed. (1955a)

Article 1133. Movables possessed through a crime can never be acquired through prescription by the offender. (1956a)

Article 1134. Ownership and other real rights over immovable property are acquired by ordinary prescription through possession of ten years. (1957a)

Article 1135. In case the adverse claimant possesses by mistake an area greater, or less than that expressed in his title, prescription shall be based on the possession. (n)

Article 1136. Possession in wartime, when the civil courts are not open, shall not be counted in favor of the adverse claimant. (n)

Article 1137. Ownership and other real rights over immovables also prescribe through uninterrupted adverse possession thereof for thirty years, without need of title or of good faith. (1959a)

Article 1138. In the computation of time necessary for prescription the following rules shall be observed:

(1) The present possessor may complete the period necessary for prescription by tacking his possession to that of his grantor or predecessor in interest;

(2) It is presumed that the present possessor who was also the possessor at a previous time, has continued to be in possession during the intervening time, unless there is proof to the contrary;

(3) The first day shall be excluded and the last day included. (1960a)

CHAPTER 3

Prescription of Actions

Article 1139. Actions prescribe by the mere lapse of time fixed by law. (1961)

Article 1140. Actions to recover movables shall prescribe eight years from the time the possession thereof is lost, unless the possessor has acquired the ownership by prescription for a less period, according to articles 1132, and without prejudice to the provisions of articles 559, 1505, and 1133. (1962a)

Article 1141. Real actions over immovables prescribe after thirty years.

This provision is without prejudice to what is established for the acquisition of ownership and other real rights by prescription. (1963)

Article 1142. A mortgage action prescribes after ten years. (1964a)

Article 1143. The following rights, among others specified elsewhere in this Code, are not extinguished by prescription:

(1) To demand a right of way, regulated in article 649;

(2) To bring an action to abate a public or private nuisance. (n)

Article 1144. The following actions must be brought within ten years from the time the right of action accrues:

(1) Upon a written contract;

(2) Upon an obligation created by law;

(3) Upon a judgment. (n)

Article 1145. The following actions must be commenced within six years:

(1) Upon an oral contract;

(2) Upon a quasi-contract. (n)

Article 1146. The following actions must be instituted within four years:

(1) Upon an injury to the rights of the plaintiff;

(2) Upon a quasi-delict;

However, when the action arises from or out of any act, activity, or conduct of any public officer involving the exercise of powers or authority arising from Martial Law including the arrest, detention and/or trial of the plaintiff, the same must be brought within one (1) year. (As amended by PD No. 1755, Dec. 24, 1980.)

Article 1147. The following actions must be filed within one year:

(1) For forcible entry and detainer;

(2) For defamation. (n)

Article 1148. The limitations of action mentioned in articles 1140 to 1142, and 1144 to 1147 are without prejudice to those specified in other parts of this Code, in the Code of Commerce, and in special laws. (n)

Article 1149. All other actions whose periods are not fixed in this Code or in other laws must be brought within five years from the time the right of action accrues. (n)

Article 1150. The time for prescription for all kinds of actions, when there is no special provision which ordains otherwise, shall be counted from the day they may be brought. (1969)

Article 1151. The time for the prescription of actions which have for their object the enforcement of obligations to pay principal with interest or annuity runs from the last payment of the annuity or of the interest. (1970a)

Article 1152. The period for prescription of actions to demand the fulfillment of obligation declared by a judgment commences from the time the judgment became final. (1971)

Article 1153. The period for prescription of actions to demand accounting runs from the day the persons who should render the same cease in their functions.

The period for the action arising from the result of the accounting runs from the date when said result was recognized by agreement of the interested parties. (1972)

Article 1154. The period during which the obligee was prevented by a fortuitous event from enforcing his right is not reckoned against him. (n)

Article 1155. The prescription of actions is interrupted when they are filed before the court, when there is a written extrajudicial demand by the creditors, and when there is any written acknowledgment of the debt by the debtor. (1973)

Prescription is a mode of acquiring ownership and other real rights through lapse of time (acquisitive prescription); and losing rights and actions (extinctive prescription)

There are two kinds of prescription.

• Acquisitive prescription it is the acquisition of ownership and other real rights through possession of a thing in the manner and under conditions provided by law.
• Extinctive prescription it is the loss or extinguishment of property rights or actions through the possession by another of a thing for the period provided by law or through failure to bring the necessary action to enforce one right within the period fixed by law (De Leon, p. 701); also referred to as limitation of actions (Morales v. CFI, GR No. L-52278, 1980)

Prescription Of Ownership And Other Real Rights

Acquisitive prescription of ownership and other real rights may be ordinary or extraordinary.

Ordinary acquisitive prescription requires possession of things in good faith and with just title for the time fixed by law. Extraordinary acquisitive prescription requires neither good faith nor just title but possession for a longer period than the ordinary.

Interruption of prescription of actions

• Action is filed before the court
• There is extrajudicial demand by the creditors
• There is any written acknowledgement of the debt by the debtor (Jurado, Civil Law Reviewer, 2009)

TYPES OF PRESCRIPTION

• Acquisitive
• Extinctive

WHEN PRESCRIPTION IS INAPPLICABLE

• By offender
• Registered lands
• Actions to demand right of way; to abate a nuisance
• Action to quiet title if plaintiff is in possession
• Void contracts
• Action to demand partition; distinguished from laches
• Property of public dominion

PRESCRIPTION OR LIMITATION OF ACTIONS

• To recover movables
• To recover immovable
• Other actions

Prescription

General Rule: A co-owner cannot acquire the whole property as against the other co-owners by acquisitive prescription. (Art. 494)

Exception: When there is valid repudiation – prescription shall start from such repudiation. (Paras, supra, p. 365)

Exception to the Exception: An action for reconveyance based on an implied or constructive trust generally prescribes in ten years, but is imprescriptible while the claimant remains in possession. (Jacinto v. Jacinto, L-17955, L-17957, 1962) (Paras, supra, p. 366)

While the husband is the recognized administrator of the conjugal property under the Civil Code, there are instances when the wife may assume administrative powers or ask for the separation of property. Where the husband is absent and incapable of administering the conjugal property, the wife must be expressly authorized by the husband or seek judicial authority to assume powers of administration. Thus, any transaction entered by the wife without the court or the husband’s authority is unenforceable. Being an unenforceable contract, the 2nd Contract is susceptible to ratification. The husband continued remitting payments for the satisfaction of the obligation under the questioned contract. These acts constitute ratification of the contract. (Fabrigas v. San Francisco, GR No. 152346, 2005)

General Requisites for Acquisitive Prescription: (CTPL)

• Capacity of the possessor to acquire by prescription
• Thing capable of acquisition by prescription
• Possession of thing under certain conditions
• Lapse of time provided by law

Who May Acquire by Prescription

• Person who is capable of acquiring property by other legal modes
• State
• Minors may acquire property or rights by prescription personally or through their parents, guardians, or legal representatives. (Art. 1107)

Against Whom Prescription May Run

• Minors and incapacitated person who have parents, guardians or other legal representatives;
• Absentees who have administrators;
• Persons living abroad who have managers or administrators
• Juridical persons, except the State and its subdivisions (Art. 1108);
• Prescription does not run between husband and wife, even if there is a separation of property agreed upon in the marriage settlements or ordered by judicial decree (Art. 1109);
• Between parents and children, prescription does not run during the minority or insanity of the child (Art. 1109)
• Between guardian and ward, prescription does not run during the continuance of the guardianship (Art. 1109)
• Between co-heirs/co-owners (there must be definite repudiation first)
• Between owner of property and person in possession of property in concept of owner

Against Whom Prescription Does Not Run

• Between husband and wife, even though there be a separation of property agreed upon in the marriage settlements or by judicial decree.
• Between parents and children, during the minority or insanity of the latter.
• Between guardian and ward during the continuance of the guardianship. (Art. 1109)

Things Subject to Prescription (Art. 1113)

All things within the commerce of men

• Private property
• Patrimonial property of the State To be subject of prescription,
• the land must be classified as alienable and disposable, and
• it must be expressly declared by the State that it is no longer intended for public use. (Republic v. Ching, G.R. No. 186166, 2010)

It is only when alienable and disposable lands are expressly declared by the State to be no longer intended for public service or for the development of the national wealth that the period of acquisitive prescription can begin to run. (Heirs of Delfin v. National Housing Authority, GR 193618, November 28, 2016)

The period of possession prior to the declaration that land is alienable and disposable agricultural land is included in the computation of possession for purposes of acquiring registration rights over a property so long as the land has already been declared as alienable and disposable at the time of the application for registration. (AFP Retirement and Separation Benefits System v Republic of the Philippines, G.R. No. 180086, 2014)

Renunciation of Prescription

Persons with capacity to alienate may renounce prescription already obtained but not the right to prescribe in the future.

Renunciation may be express or tacit. Prescription is deemed to have been tacitly renounced; renunciation results from the acts which imply abandonment of right acquired. (Art. 1112)

Creditors and persons interested in making prescription effective may avail it themselves notwithstanding express or tacit renunciation. (Art. 1114)

PRESCRIPTION/NON-PRESCRIPTION OF ACTION

Ordinary Prescription

• Possession in the concept of an owner, public, peaceful and uninterrupted;
• Possession for the period fixed by law (4 years for movables; 10 years for immovables);
• Good faith
• Just title;

b. Extraordinary

In extraordinary prescription, ownership and other real rights over immovable property are acquired through uninterrupted adverse possession thereof for 30 years without need of title or of good faith. (Gesmundo v. CA, G.R. No. 119870, 1999).In extraordinary prescription, ownership and other real rights over immovable property are acquired through uninterrupted adverse possession thereof for 30 years without need of title or of good faith. (Gesmundo v. CA, G.R. No. 119870, 1999).

Rules:

• If plaintiff is in possession The action does not prescribe. While the owner continues to be liable to an action, proceeding, or suit upon the adverse claim, he has a continuing right to be given aid by the court to ascertain and determine the nature of such claim and its effect on his title, or to assert any superior equity in his favor. He may wait until his possession is disturbed or his title is attacked before taking steps to vindicate his right.
• If plaintiff is not in possession The action may prescribe. Even if the action is brought within the period of limitations, it may be barred by laches, where there is no excuse offered for the failure to assert the title sooner. If somebody else has possession, the period of prescription for the recovery of land is either 10 or 30 years

General Rule: An action for reconveyance of a parcel of land based on implied or constructive trust prescribes in 10 years, the point of reference being the date of registration of the deed or the date of the issuance of the certificate of title over the property.

Exception: If plaintiff is in possession, the action is imprescriptible.

Extraordinary Prescription

• Possession in the concept of an owner, public, peaceful and uninterrupted;
• Within time fixed by law (8 years for movables; 30 years for immovables): Note: Just title and good faith NOT required in extraordinary prescription;

Prescription of action to recover movables and immovables

Acquisitive prescription of movables and immovables (Civil Code, Arts. 1132, 1134, 1137):

• Movable
• 4 years with good faith & just title
• 8 years if without
• Immovable
• 10 years with good faith & just title
• 30 years if without

WHEN PRESCRIPTION IS INAPPLICABLE

C. PRESCRIPTION OR LIMITATION OF ACTIONS

• TO RECOVER MOVABLES

Prescriptive period for action to recover movables is 8 years from the time the possession is lost. (Art. 1140)

Prescriptive period for action to recover movables is 8 years from the time the possession is lost. (Art. 1140)

• TO RECOVER IMMOVABLES

The period for bringing real actions over immovables is 30 years unless the possessor has acquired ownership of the immovable by ordinary acquisitive prescription through possession of 10 years (meaning with good faith and just title).

For annulment of a contract on the ground of fraud, the prescriptive period is 4 years from discovery of the fraud (Art. 1391). The period for other fraud-based actions depends on the action; reconveyance based on an implied trust generally has a 10-year period.

• OTHER ACTION

Prescription starts from the accrual or the day the action may be brought. (Art. 1150, NCC)

Interruption of possession for the purpose of prescription (PEN-C)

• Natural
• Through any cause, possession ceases for more than 1 year
• If 1 year or less as if no interruption; the time elapsed shall be counted in favor of prescription
• Civil when there is judicial summons to the possessor Note: Exceptions
• Void for lack of legal solemnities
• Plaintiff desists from complaint/allows proceedings to lapse
• Possessor is absolved from complaint
• Express or tacit recognition by the possessor of the owner's right;
• Possession in wartime, when civil courts are not open, is not counted in favor of the possessor.

Prescription already obtained may be renounced, expressly or tacitly, under Civil Code, Art. 1112.