Civil Law -Usufruct

1. USUFRUCT
CASE COMPILATION BY VIKKI J. AMORIO

2. CONCEPT OF USUFRUCT
It is the right of a person called the
usufructuary, to enjoy the property of another
called the owner, with the obligation of
returning it at the designated time and
preserving its form and substance, unless the
title constituting it or the law provides otherwise.

3. USUFRUCT IN FAVOR OF A
FOREIGNER
A usufruct over parcels of land made by a Filipino in
favor of an Austrian woman is valid because title is not
vested in the usufructuary.
(Ramirez vs. Vda. De Ramirez, 111 SCRA 704)

4. RIGHTS OF A
USUFRUCTUARY
Art. 566. The usufructuary shall be entitled
to all the natural, industrial and civil
fruits of the property in usufruct. With
respect to hidden treasure which may be
found on the land or tenement, he shall be
considered a stranger.

5. GENERAL RULE AS TO THE RIGHTS
AND OBLIGATIONS OF A
USUFRUCTUARY
Art. 565. The rights and obligations of the
usufructuary shall be those provided in the
title constituting the usufruct; in default of
such title, or in case it is deficient, the
provisions contained in the two following
Chapters shall be observed.

6. RIGHTS OF A
USUFRUCTUARY
Art. 566. The usufructuary shall be entitled
to all the natural, industrial and civil
fruits of the property in usufruct. With
respect to hidden treasure which may be
found on the land or tenement, he shall be
considered a stranger.

7. DIVIDENDS FROM SHARES IN
A CORPORATION
Dividends from shares in a corporation are civil fruits
whether in the form of cash or stock dividends. The
108,000 shares of stock are part of the property in
usufruct. The 54,000 shares of stock dividend are civil
fruits of the original investment. They represent profits,
and the delivery of the certificate of stock covering said
dividend is equivalent to the payment of said profits.

8. A dividend, whether in the form of cash or stock, is
income and, consequently, should go to the
usufructuary, taking into consideration that a stock
dividend as well as a cash dividend can be declared
only out of profits of the corporation, for if it were
declared out of the capital it would be a serious
violation of the law.
(Bachrach v. Seifert and Elianoff 87 Phil. 483 )