Case Digest (G.R. No. 95771)
Facts:
This case involves a petition for review on certiorari filed by Lawrence Bowe and Cirilo Arbolario (petitioners) against the Honorable Court of Appeals and Teodoro R. Garcia, represented by his son Serafin M. Garcia (respondents). The case originated from a decision dated December 18, 1989, and a resolution dated October 23, 1990, from the Court of Appeals, which affirmed the Regional Trial Court (RTC) of Olongapo City’s decision dated December 17, 1987, in Civil Case No. 451-0-84. The dispute arose from a lease contract executed on June 27, 1979, between Teodoro Garcia's late wife, Luz Garcia, as the lessor, and Laura Arbolario (now deceased, substituted by Lawrence Bowe) as the lessee. The lease was for a two-storey, six-door apartment building located at No. 2-B Leo St., Lower Kalaklan, Olongapo City, with a term of five years, commencing on September 1, 1979, and ending on September 1, 1984. The contract stipulated that the petitioners could sublease the premises and ...
Case Digest (G.R. No. 95771)
Facts:
Lease Agreement: On June 27, 1979, Luz Garcia (now deceased), wife of private respondent Teodoro Garcia, entered into a 5-year lease agreement with Laura Arbolario (now deceased, substituted by her son Lawrence Bowe) for a 2-storey, 6-door apartment building in Olongapo City. The lease was to run from September 1, 1979, to September 1, 1984. The agreement allowed the petitioners to sublease the property and collect rentals, with the condition that they would pay Teodoro Garcia P30,000 annually after settling a P75,000 debt owed to them.
Verbal Agreement to Sell: In October 1982, Teodoro Garcia and his son Serafin verbally agreed to sell the property to the spouses Cirilo and Laura Arbolario for P220,000. Down payments totaling P66,000 were made, with the balance to be paid upon Teodoro Garcia's return to the Philippines, when he would execute the deed of absolute sale.
Termination of Agreement: After the last payment on December 22, 1983, Teodoro Garcia informed the petitioners that the deal was off. Following the expiration of the lease on September 1, 1984, Serafin Garcia offered to account for the payments made by the petitioners, but they refused, claiming ownership of the property.
Filing of Complaint: Teodoro Garcia, represented by Serafin, filed a complaint for termination of the lease, reimbursement of rents, and damages, alleging that the petitioners refused to vacate the premises after the lease expired.
Petitioners' Defense: The petitioners admitted the lease but claimed that the property was sold to them in 1982. They argued that they had made payments and improvements on the property and had a right to remain as owners.
Lower Court Decision: The Regional Trial Court ruled in favor of Teodoro Garcia, terminating the lease, ordering the petitioners to vacate, and requiring them to pay unpaid rentals, attorney’s fees, and other damages.
Appeal to Court of Appeals: The Court of Appeals affirmed the lower court’s decision, prompting the petitioners to file this petition for review.
Issue:
- Whether the contract of lease was supplanted or abandoned by the verbal agreement to sell the property.
- Whether the verbal agreement constituted a contract of sale or a contract to sell.
- Whether the suit for termination of lease was actually an unlawful detainer case, which should have been filed in an inferior court.
- Whether the Court of Appeals erred in affirming the lower court’s decision.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)