Facts:

• Datalift Movers, Inc. and Jaime B. Aquino are the petitioners.
• Belgravia Realty & Development Corporation and Sampaguita Brokerage, Inc. are the respondents.
• In 1987, Philippine National Railways (PNR) leased a 3,967.70 square meter lot to Sampaguita Brokerage, Inc. for a monthly rental of P6,282.49, with a 10% annual increase.
• Sampaguita arranged for Belgravia to construct a warehouse on the leased lot.
• Belgravia sublet the warehouse to Datalift under a one-year lease agreement starting October 2, 1990, at a monthly rental of P40,000.00.
• After the initial lease expired, Datalift continued occupying the warehouse with Belgravia's acquiescence.
• In June 1994, Belgravia increased the rent to P60,000.00, and to P130,000.00 in November 1994, citing increased demands from PNR.
• Datalift stopped paying rent due to these increases.
• Sampaguita sent demand letters for arrears totaling P4,120,000.00 and requested Datalift to vacate the premises.
• An ejectment complaint was filed against Datalift and Aquino in the Metropolitan Trial Court (MeTC) of Manila.
• Datalift and Aquino argued that Sampaguita had no cause of action and that the lease had expired.
• The MeTC ruled in favor of Sampaguita and Belgravia, ordering Datalift to vacate and pay reduced rental arrears.
• Both parties appealed to the Regional Trial Court (RTC), which affirmed the MeTC's decision.
• The Court of Appeals (CA) dismissed Datalift's petition, leading to a Supreme Court review.

Issue:

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Ruling:

• The Supreme Court affirmed the Court of Appeals' decision, ordering the petitioners to vacate the leased premises for nonpayment of rentals.
• The Court modified the amou...(Unlock)

Ratio:

• The Supreme Court upheld the lower courts' findings that an implied new lease existed between PNR and Sampaguita due to PNR's ina...continue reading