Oblicon (Prescription)

25
OBLICON: PRESCRIPTION Ma. Angela Leonor Aguinaldo Title V. - PRESCRIPTION CHAPTER 1 GENERAL PROVISIONS CONCEPT AND KINDS OF PRESCRIPTION Acquisition of a right by the lapse of time—acquisitive prescription or adverse possession Loss of a right of action by the lapse of time—extinctive prescription or limitation of actions Art. 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 conditions are lost by prescription. (1930a) ACQUISITIVE PRESCRIPTION There is a natural obligation to return the thing subsists Our law considers an obligation barred by extinctive prescription as a natural one, and the same consideration can be given the duty to return the thing to its true owner after it has been acquired by prescription RETROACTIVITY OF PRESCRIPTION The acquisition of ownership or other real rights through prescription is retroactive Once the period is completed, the new owner is considered as having acquired the thing or right from the moment the period began to run PRESCRIPTION AS A MATTER OF DEFENSE Must be expressly relied upon in the pleading It cannot be availed of unless it is especially pleaded in the answer and it must be proved or established with the same degree of certainty as any essential allegation in the civil action It would be an error for the court to permit proof of prescription, if this is not defensively pleaded and the proof is objected to

Transcript of Oblicon (Prescription)

OBLICON: PRESCRIPTION Ma. Angela Leonor Aguinaldo

Title V. - PRESCRIPTION CHAPTER 1 GENERAL PROVISIONS CONCEPT AND KINDS OF PRESCRIPTION Acquisition of a right by the lapse of time—acquisitive prescription or

adverse possession Loss of a right of action by the lapse of time—extinctive prescription or

limitation of actions Art. 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 conditions are lost by prescription. (1930a) ACQUISITIVE PRESCRIPTION There is a natural obligation to return the thing subsists Our law considers an obligation barred by extinctive prescription as a

natural one, and the same consideration can be given the duty to return the thing to its true owner after it has been acquired by prescription

RETROACTIVITY OF PRESCRIPTION The acquisition of ownership or other real rights through prescription is

retroactive Once the period is completed, the new owner is considered as having

acquired the thing or right from the moment the period began to run PRESCRIPTION AS A MATTER OF DEFENSE Must be expressly relied upon in the pleading It cannot be availed of unless it is especially pleaded in the answer and

it must be proved or established with the same degree of certainty as any essential allegation in the civil action

It would be an error for the court to permit proof of prescription, if this is not defensively pleaded and the proof is objected to

However, if the defense is that the occupant of property is the absolute owner because of prescription, the plea of ownership would be sufficient to justify proof thereof, even if there is no allegation of prescription of action.

Art. 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) CAPACITY FOR PRESCRIPTION Generally, capacity to acquire property or rights by other legal modes

is required for prescription Minors and incapacitated persons may also acquire by prescription It is necessary that they have discernment because the intent to

appropriate the thing as one’s own is an essential element of the possession

When the prescription requires just title, the capacity to prescribe will be the same capacity required for the particular title in question

Art. 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) MINORS AND INCAPACITATED PERSONS Under Article 190 of the Code of Civil Procedure—

• If the person entitled to bring the action mentioned in the preceding sections of this chapter (title to land by prescription) is, at the time of the cause of action accrues, within the age of minority, of unsound mind, or in prison, such person may, after the expiration of 10 years from the time of the cause of action accrues, bring such action within three years after such disability is removed

• If a person entitled to bring any action mentioned in either the two last preceding sections is, at the time the cause of action accrues, within the age of minority, or unsound mind, or in prison, such person may bring such action within 2 years after the disability is removed

The abovementioned have been modified by the Civil Code—where the minors or incapacitated persons have parents, guardians, or other legal representatives, prescription runs against them; hence, the saving provision abovementioned doesn’t apply to them. But when such minors, insane persons, or persons in prison, don’t have such parents, guardians, or legal representatives, then the saving provisions will apply to them, and they may bring their actions within 3 or 2 years, as the case may be, after their disability has been removed (Tolentino, p. 5)

The saving clauses under Article 190 have the effect of giving the incapacitated person the designated period after the removal of the disability within which to bring suit, if the period of prescription has already prescribed

The benefit of the saving clause extends to all parties who have a joint and inseparable interest with the party under disability

Art. 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) Art. 1110. Prescription, acquisitive and extinctive, runs in favor of, or against a married woman. (n) Art. 1111. Prescription obtained by a co-proprietor or a co-owner shall benefit the others. (1933) NEED FOR RATIFICATION This article would apply only when the prescription has a relation to

the property owned in common But the mere existence of the relationship of the co-owners will not in

itself suffice to give the benefit of prescription by one in favor of all the others

And because prescription must be in the concept of owner in order to ripen into ownership by prescription, it seems juridically incompatible that co-owners who don’t ratify and may not even know the possessory acts of another co-owner, should be considered also in possession in concept of owner (Tolentino, p. 8)

Art. 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) RENUNCIATION IS UNILATERAL Renunciation of a prescription already acquired is a unilateral act, and

doesn’t require the acceptance of the person benefited by it TACIT RENUNCIATION

Where a party acknowledges the correctness of the debt and promises to pay it after the same has prescribed and with full knowledge of the prescription, he thereby waives the benefit of prescription.

Or if after prescription has run, the maker of the note, in a letter to a holder thereof, acknowledges the existence of the debt, but says an extension of time has been given to him, the case is taken out of prescription

RENUNCIATION VOID Renunciation of prescription in advance is void RENUNCIATION BY REPRESENTATIVES Only persons with capacity to alienate property can renounce

prescription already obtained Art. 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) EXCEPTIONS TO THE RULE: THE FOLLOWING CANNOT BE ACQUIRED BY PRESCRIPTION 1. Movables possessed through a crime 2. Lands registered under the Torrens system PATRIMONIAL PROPERTY OF THE STATE Patrimonial property of the State or any of its subdivisions not

patrimonial in character shall not be the object of prescription Only property not patrimonial in character should be free from

prescription Patrimonial property may be acquired by prescription against the State

or any of its subdivisions Art. 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)

CREDITORS MAY PLEAD PRESCRIPTION The law accords to all creditors and persons who have an interest in

the extinguishment of an obligation, the right to plead prescription for themselves, even if the person bound by the obligation should renounce such prescription

Art. 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) Art. 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 Art. 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) REQUISITES OF ACQUISITIVE PRESCRIPTION 1. Capacity to acquire prescription 2. A things capable of acquisition by prescription 3. Possession of a thing under certain conditions 4. Lapse of time provided by law ORDINARY PRESCRIPTION Requires possession of things in good faith and with just title from the

time fixed by law Person acquiring by prescription is in good faith and with just title Compared with extraordinary prescription: with bad faith and without

just title

Good faith: thought the possessor is the owner Just title: acquisition of ownership from anyone he thought to be the

owner • ATTY. SAN PEDRO’S ILLUSTRATION: X was the owner of a bike,

which was given with Y. In turn, Y sold the bike to Z. Z acquired the bike in good faith and with just title. Z may now acquire the bike through ordinary prescription. Period is for 4 years.

• In the abovementioned, you have to settle the issues. If the bike is a subject of the Anti-Fencing Law, the bike couldn’t be acquired for ownership.

ATTY. SAN PEDRO’S DIAGRAM: ORDINARY EXTRAORDINARY PERSONAL PROPERTY 4 8 REAL PROPERTY 10 30

CONVERSION OF POSSESSION When the possession begins in good faith but is later converted into

bad faith, how long should the prescription be, ordinary or extraordinary?

• The supervening bad faith erases the former possession in good faith, and extraordinary prescription will run from the date of possession in bad faith

• The prescription will be extraordinary, but the period will be counted from the time possession begins

• The prescription will be extraordinary but the possession in good faith shall be computed in the proportion that the period of extraordinary prescription bears to that of ordinary prescription—most acceptable because it reflects the difference between the two kinds of prescription and gives the proper value to possession in good faith (Tolentino, p. 15)

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

Art. 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) CONCEPT OF OWNER For a claim of acquisitive prescription to prosper, possession of

property must be in the concept of owner for a certain period of time Acts of a possessory character which are merely tolerated by the

possessor or which are due to his license, don’t constitute possession Applicable principle not only to the prescription of the dominium as a

whole but to the prescription of a right in rem For prescription to be a mode of acquisition of property, there should

be the concept of owner PUBLIC Possession is public when the acts of enjoyment are executed in such a

manner as to be manifest or visible to all, especially to the person against whom the possession is being adversely asserted

In order that the possession may be considered public, it must be known to the owner of the thing

ATTY. SAN PEDRO: to give the rightful owner the right to recover the property

PEACEFUL When it is acquired and maintained without any violence, physical or

moral ATTY. SAN PEDRO: at least you have constructive control and

possession of the property; uncontested (e.g fenced property, etc.) UNINTERRUPTED Possession is continuous when the possessor has never ceased to

manifest with external acts the intention to exercise a right over the thing, which presupposes that he has never in fact ceased to exercise the right

If there has been no act of deprivation of enjoyment of the things by third persons, or any other act which interrupts prescription

Art. 1120. Possession is interrupted for the purposes of prescription, naturally or civilly. (1943) EFFECT OF INTERRUPTION When prescription is interrupted, all the benefits acquired so far from

the possession cease, when the prescription runs again, it will be an entirely new one

Suspension of prescription—the past period is included in the computation, being added to the period after prescription is resumed

ATTY. SAN PEDRO: WHAT IF THERE IS AN INTERRUPTION? If there is an interruption, you count again the period Registered property cannot be acquired by prescription—you can

adversely possess property but you cannot own it. You can be evicted anytime from the registered property.

Art. 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) Art. 1122. If the natural interruption is for only one year or less, the time elapsed shall be counted in favor of the prescription. (n) NATURAL INTERRUPTION Cession of prescription for more than 1 year Art. 1123. Civil interruption is produced by judicial summons to the possessor. (1945a) Art. 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) EFFECT OF RECOVERY OF POSSESSION In case of natural interruption, the old possession loses its juridical

effects, and even if the possession is reacquired, the old possession cannot be tacked to the new possession for purposes of prescription

Art. 1125. Any express or tacit recognition which the possessor may make of the owner's right also interrupts possession. (1948) RECOGNITION BY POSSESSOR In order to interrupt prescription, the recognition of the owner’s right

must be made by the possessor Declaration of a third person that the property doesn’t belong to the

possessor, when such declaration hasn’t been authorized or ratified by the possessor, doesn’t interrupt the possession for prescription

Art. 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) RECORDED TITLES AS TO THIRD PERSONS The owner of the thing at the beginning of the prescriptive period is

not who is considered a third person within the meaning of this rule Those who acquire their right subsequently, relying on the registration

of ownership in the Registry, must be considered as third persons and cannot be prejudiced

The third person must have acquired under the following conditions— • That the acquisition is by onerous title

• That the acquisition is from one who, according to the Registry, can transmit title

• That the acquisition is registered • That such third person has no knowledge of the prescription

While the registered owner who executed the title which is the basis for prescription, is not considered a third person, he is however, regarded as a third person with respect to a title executed by another who is not the registered owner

The time for prescription to the prejudice of those who are not considered as third persons with recorded titles, shall be counted from the commencement of the possession under the title of ownership, although the title by virtue of which it is held may not have been registered

REGISTERED LANDS Adverse possession may not be allowed to defeat the owner’s right to

possession of land registered under the Torrens system; loss of the land by prescription would be indirectly approved in violation of the Land Registration Act

Art. 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) Art. 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) POSSESSION IN GOOD FAITH Under the Civil Code, prescriptive title over real estate is not acquired

by the mere possession thereof, under claim of ownership, for a period of 10 years, unless it was originally acquired through just title and good faith

Good faith requires a well-founded belief that the person from whom title was received was himself the owner of the land, with the right to convey

To be in good faith, the possessor must believe that the title for his acquisition is sufficient, it is not enough that he knows of no defect of it

This belief must be founded and there is sufficient basis when he believes that the transferor was the owner of the thing and could transmit the ownership thereof

Art. 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) Art. 1130. The title for prescription must be true and valid. (1953) Art. 1131. For the purposes of prescription, just title must be proved; it is never presumed. (1954a) JUST TITLE Is an act which has for its purpose the transmission of ownership, and

which would have actually transferred ownership if the grantor had been the owner

TRUE TITLE The title must actually exist, and not merely in the mind of the

possessor A false title, which doesn’t exist but is believed by the possessor to

exist, may or may not be sufficient. The false belief may be based on an error of fact or law. If the mistake of fact refers to an act of a third person, the title is sufficient for prescription. If it refers to the act of the possessor, it is insufficient.

A revocable title, or one in which the transferor has made a reservation by virtue of which the right of the possessor may disappear, cannot serve as basis for prescription.

VALID TITLE It should be sufficient to transmit the right if the grantor had been the

owner

TITLE MUST BE PROVED The requirement that just title must be proved is an exception to the

general rule which presumes that a just title for every possessor in the concept of an owner

Art. 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) Art. 1133. Movables possessed through a crime can never be acquired through prescription by the offender. (1956a) Art. 1134. Ownership and other real rights over immovable property are acquired by ordinary prescription through possession of ten years. (1957a) Art. 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) CONSTRUCTIVE POSSESSION The possession upon which prescription is based, is not limited to the

area actually occupied but covers the area which the possession is asserted

Principle of constructive possession The actual possession of a part of a tract of land, with title or claim to

the whole, with intention to claim everything within the title or area

over which the right is asserted, is possession of the whole as will serve as basis for prescription of the entire tract

Doctrine applies when the possession is under title calling for the whole

Art. 1136. Possession in wartime, when the civil courts are not open, shall not be counted in favor of the adverse claimant. Art. 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) Art. 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) TACKING OF POSSESSION The present possessor must have obtained his possession from the

previous possessor Privity between them Possible only when there is succession of rights between the

predecessor and successor ATTY. SAN PEDRO: WHAT IS TACKING? Supposed, you are dealing with unregistered land X wasn’t the owner of the property though he sold the property to Y

Y was in good faith and buyer for value. Y then can acquire the property through ordinary prescription.

Y then occupied the property for 6 years and later sold the land to Z. The period of prescription for Z to acquire ownership is only 4 years. Z

can now tacked into the possession of Y. Now, think that Y was in bad faith and possessed the property for 10

years. Z holds it for 5 years. How many years is needed for Z to acquire the property? It would be 5 years. Bad faith cannot tacked on good faith but good faith can tacked on bad faith.

Supposed now, Y was a good faith for 6 years. Z was in bad faith and possessed for 4 years. How many years is still needed for Z to acquire the property? It would be 8 years, using the 1:2 ratio.

• GF=BF; 1:3 • Multiply 6 by 3. This is equal to 18 years of bad faith. • Bad faith on the part of Z is 4. • 18 years add to 4 years would be equal to 22. 8 years more to

have 30 years of extraordinary prescription. DIFFERENT CHARACTER OF POSSESSION Where the possessor was in good faith, and the successor is in bad

faith, the latter can only assert extraordinary prescription. But how will the period be computed?

Some believe that possession of the predecessor in good faith will be wiped out and not tacked to that of the present possessor

The more reasonable view however is that the tacking of possession should be permitted in such case. The period should be computed in the same manner as where the character of the possession of a person changes while the period is running; that is, the period of possession in good faith should be computed in the proportion that the period of extraordinary prescription bears to that of ordinary prescription

If the possession of the predecessor was in bad faith, and that of the successor in good faith, what shall be the solution? The present possessor can claim under ordinary prescription, but in this case the possession of the predecessor cannot be availed of for ordinary prescription.

The present possessor in good faith, however, shouldn’t be limited to ordinary prescription. The period of possession of the predecessor, although in bad faith, may have been so long that it would be

beneficial by the present possessor to claim extraordinary prescription by tacking the previous possession to his own possession.

CHAPTER 3 PRESCRIPTION OF ACTIONS CONCEPT OF PRESCRIPTION OF ACTIONS Refers to the time within which an action may be brought, or some act

alone, to preserve a right Statute of limitations—acts limiting the time within which actions shall

be brought • Enacted to restrict the period within which the right, otherwise

unlimited, might be asserted PRESCRIPTION AND LACHES Defense of laches applies independently of prescription Art. 1139. Actions prescribe by the mere lapse of time fixed by law. (1961) PRESCRIPTION TO BE PLEADED The bar of the statute of limitations cannot be asserted as a defense

unless it is specially pleaded in the answer and proven with the same degree of certainty by which any essential allegation in the pleadings is established

Art. 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) Art. 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)

ACTION AFFECTING REALTY While an action for reformation of instrument, such as a contract of

sale with pacto de recto sale alleged to be merely an equitable mortgage, is an action based upon a written contract which must be brought within 10 years from the time the right of action accrues, where, however, the accrual of such right couldn’t be established it is more logical to apply Article 1141 because in realty the action seeks to reassert one’s title of ownership over the real property not to recover the same

Art. 1142. A mortgage action prescribes after ten years. (1964a) Art. 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) Art. 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) ATTY. SAN PEDRO NOTES: Supposed the period to claim is for 3 years and then the 3 years

already lapsed. How would you claim? Change your action and say that you’re enforcing action in relation to the employment contract. Or, you can find a legal provision to anchor your claim. The moment you change your legal theory, the longer period to file your action.

IMPLIED TRUSTS

When property is registered in another’s name, an implied or constructive trust is created by law in favor of true owner

The action of reconveyance of the title to the rightful owner prescribes in 10 years from the issuance of the title

But if fraud has been committed, and this is the basis of action, not implied trust, the action will be barred after four years

Art. 1145. The following actions must be commenced within six years: (1) Upon an oral contract; (2) Upon a quasi-contract. (n) Art. 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.) Art. 1147. The following actions must be filed within one year: (1) For forcible entry and detainer; (2) For defamation. (n) Art. 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)

Art. 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) Art. 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) TIME FROM WHICH PERIOD COMPUTED Time from which we are to compute the period fixed by law for the

extinguishment of the abandoned right of action In cases where there is no special provision for such computation,

recourse must be had to the rule that the period must be counted from the day on which the corresponding action couldn’t have been instituted

Legal possibility of bringing the actions which determines the starting point for the computation of the period

ACRRUAL OF CAUSE OF ACTION A cause of action arises when that which should have been done is not

done, or that should not have been done is done Elements of a good cause of action—existence of a legal right in the

plaintiff, with a corresponding legal duty in the defendant, and a violation or breach of that right or duty with consequential injury and damage to the plaintiff, for which he may maintain an action for appropriate relief

Art. 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) OBLIGATIONS WITH INTEREST Rule in this article that the period of prescription in obligations with

interest runs only from the last payment of interest, is applicable only to cases where the principal debt is already due

Art. 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) WHEN JUDGMENT BECOMES FINAL In the trial court, final upon the expiration of the period for appeal;

thereafter, prescription begins to run In the SC or CA, the true judgment is that entered by the clerk of that

Court pursuant to the dispositive part of its decision, and the period of prescription is, therefrom computed from the date such judgment is entered

Art. 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) CURRENT ACCOUNTS There is a distinction as to the time when the period of prescription

begins to run in mutual contract accounts and in simple contract open accounts

In the former, the statute of limitations begins to run on the date of the last item; while in the latter, the statute begins to run from the date of each particular item

When there is a mutual, open and current account between two parties it is said that it implies that they have mutually consented that each item shall not constitute an independent due immediately, to be paid or enforced at once but that the items occurring from time to time, in favor of the respective parties, shall operate as mutual set-offs, and that the shifting balance, when either or both shall call for it, shall be the debt, and for this reason the statute of limitations doesn’t run during such a state of mutual dealings, but only from the date of the last item

Art. 1154. The period during which the obligee was prevented by a fortuitous event from enforcing his right is not reckoned against him. (n) Art. 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. (1973a) NO SUSPENSION If the plaintiff desists in its prosecution or judgment is unconditionally

stayed for one reason or another, the running of period of limitations is not suspended

And an amendment to the complaint, which introduces a new or different cause of action, maklng a new or different demand, is equivalent to a fresh suit upon a new cause of action, and the statute of limitations continues to run until the amendment is filed

WRITTEN EXTRAJUDICIAL DEMAND Running of the period should be interrupted when a demand is made

by the creditor upon the debtor before the lapse of the period fixed by law

WRITTEN ACKNOWLEDGEMENT OF DEBT While in acquisitive prescription the possession may be interrupted by

any express or tacit recognition of the owner’s right, in extinctive prescription, the interruption through acknowledgement of the creditor’s right can take place only when such acknowledgement is in writing

INSUFFICIENT ACKNOWLEDGEMENT Not every reference to a debt can be considered as an

acknowledgement that will interrupt prescription And while acknowledges receipt of a statement of account of an

indebtedness, saying that he has examined it, but declines to recognize the correctness of the account, claiming that the same is exorbitant, there is no such acknowledgment as will interrupt the running of prescription

LEGAL REPRESENTATIVE Acknowledgment of debt may be made by legal representative BEFORE PERIOD EXPIRES The acknowledgment of a debt before the expiration of the period of

prescription will interrupt the running of prescription; but a mere acknowledgment of the obligation after it has already prescribed is not sufficient to renew the period of prescription.

If the period has already expired, there must be a renunciation of the prescription already acquired, in order that the action may be waived

A mere acknowledgment of the debt doesn’t constitute renunciation of the prescription already acquired; there must be new and positive promise to pay in order to nullify the prescription that has already accrued

Thus, an acknowledgment by the debtor, after the prescription has expired, that he has not paid the debt, wouldn’t bind him to pay it

EFFECT OF ACKNOWLEDGMENT By acknowledging a debt, the debtor may renew the obligation and

interrupt the prescription, so as to make it run only from the date of the acknowledgment

EFFECT OF PART PAYMENTS Part payment of a debt, therefore, cannot interrupt the period of

prescription A partial payment before the period has elapsed is undoubtedly an

implied acknowledgment of the debt OTHER CAUSES NOT INTERRUPTING The death of the debtor doesn’t interrupt the running of the statute of

limitations because the creditor has at his disposal appropriate means for the prosecution of an action to enforce the collection of his claim

Transfer of the right to another person doesn’t suspend the right of the period of prescription because once it begins to run it never stops until legally interrupted

Institution of a criminal action cannot have the effect of interrupting the institution of a civil action based on a quasi-delict

An order to stay execution of a judgment doesn’t suspend the running of a prescription against it

Confinement in jail is not one of the grounds by which prescription of an action may be interrupted

ATTY. SAN PEDRO’S NOTES: HOW WOULD YOU COUNT THE PERIOD FOR EXTINCTIVE PRESCRIPTION? Count from the time you’ll have to file an action If from the written contract, from the time of breach ATTY. SAN PEDRO’S NOTES: Extinctive prescription may also be interrupted Article 1155

3/20/07 12:21 PM

3/20/07 12:21 PM