[Answer/discuss the question below, or see 2016 bar exam Civil Law Instructions; 2016 Labor Law Questions: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19 and 20; See also 2016 Bar Exam: Information, Discussions, Tips, Questions and Results]
Pedro bought a parcel of land described as Cadastral Lot No. 123 and the title was issued to his name. Juan also bought a lot in the same place, which is described as Cadastral Lot No. 124. Pedro hired a geodetic engineer to determine the actual location of Lot No. 123 but for some reason, the engineer pointed to Lot No. 124 by mistake. Pedro hired a contractor to construct his house and the latter put up a sign stating the name ofthe owner ofthe project and the construction permit number. It took more than a year before the house was constructed. When Pedro was already residing in his house, Juan told him to remove his house because it was built on his (Juan’s) lot.
Juan filed a Complaint for Recovery of Possession and prayed that the house be removed because Pedro is a builder in bad faith. Pedro filed his Answer with Counterclaim that he is entitled to the payment of the value of the house plus damages because he is a builder in good faith and that Juan is guilty of estoppel and laches.
[a] If Pedro is a builder in good faith, what are the rights given to Juan under the law? Explain. (2.5%)
[b] If Pedro is a builder in bad faith, what are the rights given to Juan under the law? Explain. (2.5%)