A congregation for religious women, by way of commodatum, is using the real property owned and registered in the name of Spouses Manuel as a retreat house.
Maria, a helper of the congregation discovered a chest in the backyard. When she opened the chest, it contained several pieces of jewelry and money. (4%)
(A) Can the chest containing the pieces of jewelry and money be considered as hidden treasure?
(B) Who has the right to claim ownership of it?
Suggested answer only. Not an official answer and not legal advice.
(A) No, the chest cannot be considered hidden treasure, and (B) Spouses Manuel have the right to claim ownership over it and its contents. Under Article 439 of the Civil Code, hidden treasure consists of any hidden and unknown deposit of
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Quick check
Under Article 439 of the Civil Code, what constitutes hidden treasure?
Hidden treasure consists of a hidden and unknown deposit of precious objects whose lawful ownership does not appear.
Under Article 1933 of the Civil Code, who retains ownership of real property lent under a contract of commodatum?
The bailor retains legal ownership of the property loaned in a contract of commodatum.
Under Article 438 of the Civil Code, when is a finder entitled to a one-half share of discovered hidden treasure?
A finder is entitled to one-half of hidden treasure when the discovery is made by chance on another person's property.
Why is the chest containing jewelry found by Maria NOT considered hidden treasure under civil law?
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Who has the legal right to claim ownership of the chest of jewelry found in the backyard of the retreat house?
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Learn more about these topics
1. Hidden Treasure Requisites
Under Article 439 of the Civil Code, hidden treasure consists of any hidden and unknown deposit of money, jewelry, or other precious objects, the lawful ownership of which does not appear. For an object to be legally classified as hidden treasure, its deposit must be both hidden and unknown, and its legal owner must be undiscoverable. Where the owner of the land or deposit can be identified or presumed under property rules, the statutory presumption of hidden treasure does not apply.
2. Commodatum Bailor Rights
Under Article 1933 of the Civil Code, commodatum is a contract where one of the parties delivers to another something not consumable so that the latter may use the same for a certain time and return it. The bailor retains ownership of the property loaned. Consequently, any accession, natural fruit, or object found on the real property subject of commodatum remains under the legal ownership of the bailor-owner, as commodatum transfers only the temporary use and possession, not ownership.
3. Property Finder Rules
Under Article 438 of the Civil Code, hidden treasure belongs to the owner of the land, building, or other property on which it is found. However, when the discovery is made on the property of another or of the State or any of its subdivisions, and by chance, one-half thereof shall be allowed to the finder. If the object found is not hidden treasure because ownership is established or presumed, the finder acquires no legal right to any portion of the discovered items.