Colio T.

Pajuyo vs CA and Eddie Guevara refusal to RTC rejected acquired his

vacate the Guevarra’s rights, was also
house on claim of a a squatter.
Facts: Pajuyo’s better right Perez had no
demand made under right or title
- Petitioner Colita T. Pajuyo paid P400 to certain a Guevarra’s proclamation over the lot
Pedro Perez for the rights over a 250-square continued no. 137. In an bcause it is
meter lot in QC. Pajuyo then constructed a possession of ejectment suit, public land. The
house. Pajkuyo and his family lived in the house the house the RTC has no assignment of
from 1979 to 1985. illegal. power to decide rights between
- Pajuyo informed guevarra of his need of the Guevarra’s right perez and
under these pajuyo, and the
house and demanded that guevarra vacate the
laws. The rtc kasunduan
house. Guevarra refused.
declared that in between pajuyo
- Pajuyo filed an ejectment case against Guevarra an ejectment and guevarra,
with the MTC. case. The only did not have
Petitioner’s contention Respondent’s issue foe any legal effect.
contentions resolution is Pajuyo and
material or Guevarra are in
Guevarra is not entitled Pajuyo had no valid title
physical pari delicto or
to the property based on of right of possession
possession, not in equal fault.
the kasunduan. over the lot where the
ownership. The court will
house stands because
leave them
the lots is within the 150
where they are.
hectares set aside by
procalamation no. 137
The ca reversed
for socialized housing.
the MTC and
Guevarra pointed out
RTC rulings.
that from 1985 to 1994,
President
Pajuyo did not show up
Corazon Aquino
or communicate with
issued
him. Guevarra insisted
proclamation
that neither he nor
no. 137. At that
Pajuyo has valid title to
time, guevarra
the lot.
was in physical
possession of
MTC RTC CA the property.
It ruled that the Upheld the Declared that Under art VI of
subject of the Kasunduan, Pajuyo and the code, the
agreement which Guevarra are actual occupant
between Pajuyo established the squatter. Pajuyo or caretaker of
and Guevara is landlord and and Guevarraa the lot shall
the house and tenant illegally have first
not the lot. relationshop occupies the priority as
Pajuyo is the between pajuyo contested lot beneficiary of
owner of the and guevarra. which the the project. The
house, and he The terms of government the Ca concluded
allowed the kasunduan government that guevarra is
Guevarra to use bound guevarra owned. first in the
the house only to return hierarchy of
by tolerance. possession of Perez, the priority.
Thus, the house on person from
Guevarra’s demand. The whom Pajuyo
Issue: who is entitled to physical possession of the
disputed property?

Held: Pajuyo is entitled to physical possession of the

disputed property.

Guevarra does not dispute Pajuyo’s prior possession of

the lot and ownership of the house built on it. Guevarra
expressly admitted the existence and due execution of
the Kasunduan.

Based on the Kasunduan, Pajuyo permitted guevarra to

reside in the house and lot free of rent, but Guevarra
was under obligation to maintain the premises in good
consition. Guevarra promised to vacate the premises on
Pajuyo’s demand but Guevarra broke his promise and
refused to heed Pajuyo’s demand to vacate.

Moreover, the kasunduan is not void for purposes of

determining who between Pajuyo and Guevarra has a
right to physical possession of the contested property.
The kasunduan is the undeniable evidence of
Guevarra’s recognition of Pajuyo’s better right of
physical possession. Guevarra is clearly a possessor in
bad faith. The absence of a contract would not yield a
different result, as there would still be an implied
promise to vacate.

Pajuyo’s absence did not affect his actual possession of

the disputed property. Possession in the eyes of the
law does not mean that a man has to have his feet on
every square meter of the ground before he is deemed
in possession. One may acquire possession not only by
physical occupation, but also by the fact that a thing is
subject to the action of one’s will. Actual or physical
occupation is not always necessary.