Case Digest (G.R. No. 122544)
Facts:
In Regina P. Dizon et al. v. Court of Appeals and Overland Express Lines, Inc. (G.R. No. 122544 and G.R. No. 124741, January 28, 1999), petitioners Fidela P. Dizon, Regina Dizon, Amparo D. Bartolome, Ester Abad Dizon, Fidelina D. Balza and their heirs (hereafter “petitioners”) leased to Overland Express Lines, Inc. (hereafter “private respondent”) a 1,755.80‐sqm lot at the corner of MacArthur Highway and South “H” Street, Diliman, Quezon City, under a Contract of Lease with Option to Buy dated May 23, 1974. The one‐year lease (May 16, 1974 to May 15, 1975) carried an option to purchase at ₱3,000 per square meter; thereafter the lease would renew monthly at ₱3,000 rent. In June 1976 private respondent failed to pay the increased ₱8,000 monthly rental. On November 10, 1976 petitioners filed an ejectment suit (CC No. VIII-29155) in the then City Court of Quezon City. On November 22, 1982 that court ordered private respondent to vacate, to pay ₱624,000 in arrears (₱8,000/month fromCase Digest (G.R. No. 122544)
Facts:
- G.R. No. 122544
- On May 23, 1974, Overland Express Lines, Inc. (lessee) and petitioners (lessors) executed a one-year Contract of Lease with Option to Buy over a 1,755.80 sqm parcel in Quezon City, with option price at ₱3,000/sqm. After May 15, 1975, lease continued month‐to‐month at ₱3,000/month.
- Lessee defaulted on increased rent of ₱8,000/month from June 1976. On November 10, 1976 petitioners filed ejectment (Civil Case No. VIII-29155) in City Court, which on November 22, 1982 ordered lessee to vacate, pay ₱624,000 in arrears plus interest and attorney’s fees.
- Lessee sought certiorari in IAC (now CA), which on September 26, 1984 affirmed City Court jurisdiction; this Court denied review on June 19, 1985 and September 9, 1985.
- Lessee then filed:
- Specific performance suit in RTC (Q-45541) on October 7, 1985 to enforce option; injunction denied October 25, 1985.
- Annulment/relief from ejectment judgment in RTC (Q-46487) on November 15, 1985; dismissed May 12, 1986 for res judicata, but preliminary injunction later reinstated.
- The two suits were consolidated (Branch 77) and on April 28, 1989 dismissed. CA in CA-G.R. CV No. 25153-54 on March 29, 1994 reversed in part, holding that a conditional sale was perfected by lessee’s payment of ₱300,000 on June 20, 1975 via Alice A. Dizon and ordering specific performance and payment of ₱1,700/month balance with interest.
- G.R. No. 124741
- Petitioners moved CA to remand Civil Case No. VIII-29155 for execution; CA remanded on June 29, 1992. Lessee’s certiorari to this Court was dismissed September 16, 1992. Entry of judgment issued November 26, 1992.
- Petitioners secured alias writ of execution (3rd) in MTC Branch 38. Lessee filed certiorari/prohibition in RTC Branch 104 (SP No. 93-18722); RTC granted preliminary injunction January 11, 1994 on ₱50,000 bond.
- Petitioners sought relief in CA (SP No. 33113); December 11, 1995 CA dismissed their petition, later denying reconsideration April 23, 1997, holding lessee’s right to possession established by CA-CV No. 25153-54.
Issues:
- Whether the City Court (MTC) had jurisdiction over the ejectment suit despite pending RTC action for specific performance.
- Whether the lease with option automatically renewed month‐to‐month and whether lessee’s default gave petitioners cause for ejectment.
- Whether the ₱300,000 payment on June 20, 1975 perfected a contract of sale under Article 1475, New Civil Code.
- Whether Alice A. Dizon was duly authorized agent of petitioners to receive the ₱300,000 and bind co-owners.
- Whether the option to buy survived expiry of the one-year lease and was enforceable after more than ten years.
- Whether the CA decisions should be reversed and the ejectment judgment executed.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)