Title
Supreme Court
Intramuros Administration vs. Offshore Construction Development Co.
Case
G.R. No. 196795
Decision Date
Mar 7, 2018
Dispute over leased Intramuros properties; unpaid rentals led to ejectment. Supreme Court ruled in favor of Intramuros, affirming jurisdiction, no forum shopping, and ordered immediate vacation.

Case Digest (G.R. No. 176579)
Expanded Legal Reasoning Model

Facts:

  • Lease and initial dispute
    • In 1998, Intramuros Administration (IA) leased three national government properties to Offshore Construction and Development Company (Offshore) for five years (Sept. 1, 1998–Aug. 31, 2003), with mutual five-year renewal stipulation:
      • Baluarte De San Andres (2,793 sqm)
      • Baluarte De San Francisco De Dilao (1,880 sqm)
      • Revellin De Recoletos (1,036 sqm)
    • Offshore occupied and began improvements, which IA and the Department of Tourism (DOT) halted for non-conformity with Presidential Decree No. 1616.
    • Offshore filed Civil Case No. 98-91587 (R.T.C. Manila Branch 47) for injunctive relief; parties executed a Compromise Agreement (July 26, 1999) approved Feb. 8, 2000, terminating the Revellin lease and confirming two others, retaining the five-year term and redefining permitted areas.
  • Post-lease events and ejectment proceedings
    • Offshore defaulted on utilities and rentals; arrears reached ₱6.76 M by July 31, 2004. IA and DOT signed a Memorandum of Agreement (Aug. 15, 2004–Aug. 25, 2005) for Offshore to settle arrears via operational expense payments.
    • Offshore’s arrears grew to ₱13.45 M by Dec. 31, 2009; IA’s demand letter (Mar. 26, 2010) went unheeded. IA filed an ejectment complaint in M.T.C. Manila (Apr. 28, 2010).
    • Offshore answered and moved (July 12, 2010) to dismiss for alleged forum shopping, lack of jurisdiction (arguing a concession agreement), and litis pendentia due to pending R.T.C. cases: specific performance (08-119138) and interpleader (SP CA 10-123257).
    • M.T.C. granted the motion and dismissed the case (Oct. 19, 2010); R.T.C. affirmed (Apr. 14, 2011).
  • Supreme Court proceedings
    • IA filed a Petition for Review on Certiorari under Rule 45 (June 16, 2011) via the OSG, challenging jurisdiction and forum-shopping rulings; Offshore commented (Oct. 10, 2011); IA replied (Mar. 12, 2012).
    • SC granted due course (Aug. 23, 2012); parties filed memoranda (IA: Jan. 7, 2013; Offshore: Aug. 16, 2013).
    • SC resolved the case on March 7, 2018.

Issues:

  • Procedural properness
    • Was direct resort to the SC under Rule 45 proper?
  • Jurisdiction
    • Did the M.T.C. have jurisdiction over IA’s ejectment complaint?
  • Forum shopping
    • Did IA commit forum shopping by not disclosing pending related cases?
  • Merits – possession and rentals
    • Is IA entitled to restitution of possession and to collect unpaid rentals?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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