ART. 437. The owner of a parcel of land is the owner of its surface and of everything under it, and he can construct thereon any works or make any plantations and excavations which he may deem proper, without detriment to servitudes and subject to special laws and ordinances. He cannot 'complain of the reasonable requirements of aerial navigation. (350 a)

Taken from Art. 350, which provides for surface right. The present article adds "the reasonable requirements of aerial' navigation" as a limitation of ownership. The right of-a proprietor to make excavations upon his land is subject to the legal easement not to deprive any adjacent land or building of sufficient "lateral and subjacent support" (Art. 684).

ART. 438. Hidden treasure belongs to the owner of the land, building, or other property on which it is found.

Nevertheless, 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 finder is a trespasser, he shall not be entitled to any share of the treasure.

If the things found be of interest to science or the arts, the State may acquire them at their just price, which shall be divided in conformity with the rule stated. (351 a)

Taken substantially from Art. 351 providing that hidden treasures belong to the owner of the property where the same is found, except when the discovery is made by another and by chance.

He who by chance discovers hidden treasure in another's property (Art. 718) shall have the right to one-half-of the treasure so found (Art. 438), and the other half belongs to the owner of the land (Art. 718). But whoever finds a movable, which is not treasure, must return it to its previous possessor (Art. 719), who shall be obliged, to pay as a reward to the finder, one-tenth of the thing found (Art: 720). The rights and obligations of the finder of lost personal property (Art. 2171) shall be governed by Articles'719 and 720.

The usufructuary is a stranger to treasures (Art. 566). If by chance he finds hidden treasures on the estate subject, of the usufruct, he. is entitled to one-half of the treasure" discovered and the owner of the estate is entitled to the other half.

ART. 439. By treasure is-understood, for legal purposes, any hidden and unknown deposit of money, jewelry, or other precious objects, the lawful ownership of which does not appear. (352)

Reproduced from. Art. 352 which defines a treasure. Hidden treasures may be acquired by occupation (Art. 712).

ART. 718. He who by chance discovers hidden treasure in anothers property shall have the right granted him in article 438 of this Code. (614)

Reproduced from Art 614. Hidden treasure is any hidden and unknown deposit of money, Jewelry, or other precious objects, the lawful ownership of which does not appear (Art. 439). Hidden treasure belongs to the owner of the land on which it is found. But the finder by chance is allowed one half thereof (Art. 438). This is considered a quasi-contract. (Art. 2171)

Finder of hidden treasure - People vs. Langdew, CA.- G.R. No. 9580-R, prom. June 4, 1953 - Although theft is committed by the finder in misappropriating the share of hidden treasure pertaining to the owner of the property, but where the accused, due to his lack-of instruction, believed in good faith that such treasure belonged exclusively to the finder, and thus misappropriated the same, is not guilty, of said crime.

ART. 719. Whoever finds a movable, which is not treasure, must return it to its previous possessor. If the latter is unknown, the finder shall immediately deposit it with the mayor of the city or municipality where the finding has taken place. The finding shall be publicly announced by the mayor for: two consecutive weeks in the way he deems best.

If the movable cannot be kept without deterioration, or without expenses which considerably diminish its value it shall be sold, at public auction eight days after the publication. Six months from the publication having, elapsed without the owner having appeared, the thing found, or its value, shall be awarded to the finder. The finder and the owner shall be obliged, as the case maybe to reimburse the expenses. (615a)

Taken from Art. 615. The finder of, a lost personal property has the duty to return it to the owner to deposit it with the mayor. One has lost any movable may recover it from the person in possession of the same (Art. 559). The finder cannot appropriate it for himself, for that would constitute theft (Art.308, Revised Penal Code). If the real owner after publication does not appear to claim the property, it shall be awarded to the finder. In any case, the expense including transportation must reimbursed (Art. 719)).
PHILIPPINE CIVIL LAWS
ANNOTATED
CIVIL CODE OF THE PHILIPPINES
REPUBLIC ACT NO. 386
VOLUME II
ARTICLES 437-2172
1983 EDITION
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CIVIL CODE OF THE PHILIPPINES
ANNOTATED
TENTH EDITION (1981)
VOLUME TWO
Art. 438. Hidden treasure belongs to the owner of the land, building, or other property on which it is found.

Nevertheless, 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 finder is a trespasser, he shall not be entitled to any share of the treasure.

If the things found be of interest to science or the arts, the State may acquire them at their just price, which shall be divided in conformity with the rule stated, (351a)

COMMENT:

(1) Where Hidden Treasure may be Found The treasure may be found on:

(a) land

(b) building

(c) or other property

{NOTE: Under the old law (Art. 351 of the old Civil Code) treasure could be found only on "land".]

(2) Treasure Found On One's Own Property

If X finds a hidden treasure in his house, he alone owns the treasure. If he is married, the treasure belongs to the conjugal partnership (Art. 154).

(3) Treasure Found on Another's Property; Meaning of "By Chance"

For the finder to be entitled to one half, the discovery on another's property must be "by chance." This means according to Spanish commentators that there must be no purpose or intent to look for the treasure (2 Nauarro Amandi 71). Dean Capistrano and Dean Francisco are however, of the opinion that the phrase "by chance" was intended by the Code Commission to mean "by good luck," implying that one who intentionally looks for the treasure is embraced in the provision. If however, discovery is on another's property, permission must be sought, otherwise the finder will be considered a trespasser (Capistrano, Civil Code, Vol. I, pp. 393-394; Francisco, Civil Code of the Phil., Book II, p. 134). It would have avoided confusion had the Code Commission therefore used the phrase "by good luck." The author is of the opinion that "by chance" really means "by good luck," whether there was a deliberate search for the treasure or not but there was no prior agreement on how the treasure, if found, would be divided. The reason is evident: it is extremely difficult to find hidden treasure without looking for it deliberately, for in many instances, the treasure is buried, that is, "hidden", sometimes many feet under the ground.

(4) Problem (Re: Permission Given To Look for Hidden Treasure)

A, believing B's land contained hidden treasure, asked B's permission to look for the treasure. B gave permission, and A discovered the treasure. How much of the treasure should go to A?

ANS.: Although there are conflicting opinions on this point, it is believed that the treasure should be divided equally between the finder and the owner even if the finding was the result of a deliberate hunt for the treasure. Equity demands the equal sharing for it cannot be denied that had the landowner not given his permission, the treasure would not have been found; and conversely, had there not been a seeker of the treasure, same would not have been discovered (See 3 Manresa 167). It would indeed be very presumptuous to conclude that the land owner by giving permission, intended to renounce all his rights. Moreover, by giving half to each party concerned, we can more or less follow the intention of the Code Commission.

BAR - 1970

X is the owner of a piece of land where hidden treasure was believed to be buried. Y, who owns a mechanical device used in detecting hidden treasure was given permission by X to use the device on his land. Y discovered, after some effort, jewelry and other precious objects which are not of interest to science or the arts worth Peso$50,000. To whom should the treasure belong? Explain your answer.

ANS.: The treasure belong to BOTH (50-50) because this is still a case of finding by "chance", defined as "good luck'," in conformity with the intent of the Code Commission. This is so even if the search for the treasure was clearly a deliberate one. Firstly, it is difficult to find "hidden" treasure without a hunt for it, for in many cases the same is buried many feet beneath the earth. Secondly, what is the use of asking permission, if after all the treasure would go, all of it, to the proprietor of the land? Thirdly, permission is required, otherwise the finder would generally be a trespasser, who gets NOTHING.

(NOTE: Sometime ago there was the so-called "Golden Buddha incident." It is clear from the foregoing that the finder as long as he sought permission, is entitled to one-half, even if the search was deliberate.)

(5) Rule if Finder or Owner Is Married

The law provides that "the share of the hidden treasure which the law awards to the finder or the proprietor belongs to the conjugal partnership." (Art. 154)

Example:

A husband by chance discovered hidden treasure on the land of his wife. Who owns the treasure?

ANS.: The half pertaining to the husband as finder belongs to the conjugal partnership. The half pertaining to the wife as proprietor also belongs to the conjugal partnership (See Art. 154).

(6) Rights of a Usufructuary over the Hidden Treasure Found on Land He Is Using

The law says: "With respect to hidden treasure which may be found on the land or tenement, the usufructuary shall be considered a stranger." (Art. 566, Civil Code). What does "stranger" mean? It simply means that the usufructuary, does NOT get a share. If he found the treasure, he gets half as finder; but if another person found it, such person gets half as finder, and the naked owner gets the other half as owner. The same rule applies to a tenant or lessee (See 3 Manresa 158).

(7) If Finder Is a Paid Laborer of the Landowner

In the case of paid laborers, a distinction must be made. If he really discovered the property by chance, he get half. If on the other hand, he had been employed precisely to look for the treasure, he will get nothing insofar as the treasure is concerned. Of course, he will get his wages or salary (3 Manresa 165-166.) The rule is substantially the same in American law (25 C. J., p. 1138).

(8) Problem (Treasure Found Under Government Property)

If hidden treasure is found by chance under a municipal plaza, who owns the treasure?

ANS.: Half goes to the finder and the other half to the municipality. However, if the hidden treasure is scientifically or artistically valuable, the finder's half has to be given to the municipality or state, who in turn will give him a just price therefor (Art. 438). The acquisition here by the municipality or by the state is a particular form of eminent domain or expropriation, hence the procedure thereon should be substantially followed.

(9) Trespasser

A trespasser (one prohibited to enter, or not given authority to enter) who discovers hidden treasure is not entitled to any share of the treasure. If a person lawfully allowed to enter discovers the treasure, but does not reveal the fact of discovery, he does not thereby become a trespasser, in view of the permission to enter. Thus he is entitled still to his share.

(10) Treasure Hunts

A treasure hunt is an express search for hidden treasure. An owner of land may for example contract with a group of men who would look for the treasure. Should discovery be made, the actual finders will not necessarily be entitled to half. Instead, they will be given what has been stipulated in the contract.

Art. 439. By treasure is understood, for legal purposes, any hidden and unknown deposit of money, jewelry, or other precious objects, the lawful ownership of which does not appear. (352)

COMMENT:

(1) Requisites in the Definition of Hidden Treasure

(a) Hidden and unknown deposit (such that finding it would indeed be a discovery) (b) Consists of money, jewelry or other precious objects (c) Their lawful ownership does not appear

(2) Meaning of "Other Precious Objects"

Following the doctrine of ejusdem generis - the phrase "other precious objects" should be understood to refer to those of the same class as money or jewelry, and should not therefore include property imbedded in the soil, or part of the soil, like minerals (Goddard v. Winchell, 41 Am. St. Rep. 481). Immovables, like a tomb, would of course be excluded under the same rule of ejasdem generis, but not the things found inside said tomb, particularly those of interest to science or the arts (See Art. 438, 3rd paragraph; 3 Manresa 162-163). (Incidentally, under American law, the equivalent of "hidden treasure" is "treasure trove." (See Ferguson u. Rey, 44 Ore. 557)

(3) Lawful Ownership Must Not Appear

In one case, a legatee in a will inherited some books. Inside one of the books was found a wad of money bills. It was proved that the books and the money had been used by the testator. For this reason, it was held that the money did not constitute hidden treasure, because its lawful ownership appeared. (TS, Tribunal Supreme) — or the Supreme Court of Spain, Feb. 8, 1902).

(4) Precious Objects Deliberately Hidden

If deliberately hidden by the owner, precious objects cannot be considered hidden treasure even if discovered by another as long as the true owner can prove his ownership. This is because far from abandoning or renouncing his property, he intended to return to it. Thus, said . property, not being hidden treasure, cannot indeed be acquired by "occupation;" one of the modes of acquiring ownership, which includes within its scope "hidden treasure". If however, the true owner has forgotten where he kept the same and has given up hope for ever recovering it the object may now be appropriated by another since it has already become "abandoned property." If the true owner has not yet abandoned the property, it is clear that same cannot be acquired by "occupation" - and cannot properly be considered "hidden treasure."

(5) Death of Lawful Owner

If the ownership of the treasure is known, but the owner is already dead, same will not be considered "hidden treasure," and must therefore go to the owner's rightful heirs. If the only legal heir left is the state, the treasure will appertain to the State's patrimonial property (See 5 Corpus Juris 1136).

Art. 718, He who by chance discovers hidden treasure in another's property shall have the right granted him in article 438 of this Code. (614)

COMMENT:

Hidden Treasure (The Article explains itself).

Art. 719. Whoever finds a movable, which is not treasure, must return it to its previous possessor. If the latter is unknown, the finder shall immediately deposit it with the mayor of the city or municipality where the finding has taken place.

The finding shall be publicly announced by the mayor for two consecutive weeks in the way he deems best.

If the movable cannot be kept without deterioration, or without expenses which considerably diminish its value, it shall be sold at public auction eight days after the publication.

Six months from the publication having elapsed without the owner having appeared, the thing found, or its value, shall be awarded to the finder. The finder and the owner shall be obliged, as the case may be, to reimburse the expenses, (615a)

COMMENT:

(1) Finding of "Lost" Movable

One who finds lost property is guilty of theft if he does not give it to the owner or to the authorities concerned, whether or not he knows who the owner is (People v. Panotes, 36 O.G. 1008). The same is true with one who buys or successively possesses said property, with knowledge that he was buying lost property (People v. Silverio, 43 O.G. No. 6, p. 2205).

(2) Reason

The reason is because lost property is not necessarily "abandoned" property. In "loss," there is no renunciation of ownership; in "abandonment" there is renunciation, the object becomes "res nullius," and may therefore be acquired by prescription. Abandonment apparently is implied in the last paragraph of the Article.

(3) Extra-Official Expenses

Extra-official efforts and expenses to find the owner should be reimbursed, as a form of quasi-contract.

Art. 720. If the owner should appear, in time, he shall be obliged to pay, as a reward to the finder, one-tenth of the sum or of the price of the thing found. (616a)

COMMENT:

Reward to Finder (The Article explains itself).

CIVIL CODE OF THE PHILIPPINES
ANNOTATED
SEVENTH EDITION (1972)
VOLUME FIVE
Art. 2170. When by accident of other fortuitous event, movables seperately pertaining to two or more persons are commingled of confused, the rules on co-ownership shall be applicable.

COMMENT: Rule When Movables are Commingled of Confused

The Article explains itself.

Art. 2171. The rights and obligations of the finder of lost personal property shall be governed by articles 719 and 720.

COMMENT: When Lost Personal Property is Found

(a) Art. 719: Whoever finds a movable, which is not treasure, must return it to its previous possessor. If the latter is unknown, the finder shall immediately deposit it with the mayor of the city or municipality where the finding has taken place.

The finding - shall be publicly announced by the mayor for two consecutive weeks in the way lie deems best.

If the movable cannot be kept without deterioration, or without expenses which considerably diminish its value, it shall be sold at public auction eight days after the publication.

Six months from the publication having elapsed without the owner having appeared, the thing found, or its value, shall be awarded to the finder. The finder and the owner shall be obliged, as the case may be to reimburse the expenses, (615a)

(b) Art. 720: If the owner should appear in time, he shall be obliged to pay, as a reward to the finder, one-tenth of the sum or of the price of the thing found. (616a)

Art. 2172. The right of every possessor in good faith to reimbursement for necessary and useful expenses is governed by article 546.