Title
Lagon vs. Court of Appeals
Case
G.R. No. 119107
Decision Date
Mar 18, 2005
Petitioner Lagon purchased property unaware of respondent Lapuz's lease claim. SC ruled no tortious interference; Lagon acted in good faith, no damages awarded.

Case Digest (G.R. No. 119107)
Expanded Legal Reasoning Model

Facts:

  • Background
    • On June 23, 1982, petitioner Jose V. Lagon purchased two parcels of land in Tacurong, Sultan Kudarat, from the intestate estate of Bai Tonina Sepi.
    • Private respondent Menandro V. Lapuz claimed he had leased three parcels from Bai Tonina Sepi beginning in 1964, with a renewal in 1974, and had constructed commercial buildings to cover his rental obligations.
  • Procedural History
    • In 1982, Lapuz filed a complaint for torts and damages in the Regional Trial Court (RTC) of Sultan Kudarat, alleging that Lagon induced the heirs to sell and unlawfully collected rentals, thereby interfering with his leasehold rights.
    • On July 29, 1986, the RTC:
      • Declared the 1974 lease valid and binding until October 31, 1984;
      • Restored possession of the buildings to Lapuz and awarded rentals (P506,850.56) plus various damages (moral, actual, exemplary, temperate, nominal), attorney’s fees and litigation expenses, all with interest;
      • Denied Lagon’s counterclaim for damages.
    • Lagon appealed to the Court of Appeals (CA). On January 31, 1995, the CA:
      • Affirmed the lease’s authenticity, possession, and rentals award;
      • Deleted awards for moral, compensatory, exemplary, temperate, nominal damages, and litigation expenses;
      • Reduced attorney’s fees to P30,000;
      • Ordered payment of net actual rentals of P178,425 (October 1978–August 1983) less P42,700, with interest.
    • Lagon filed a petition for review on questions of: tortious interference under Art. 1314, laches, entitlement to damages and attorney’s fees, and the dismissal of his counterclaim.

Issues:

  • Did petitioner Lagon’s purchase of the property constitute tortious interference with Lapuz’s lease under Article 1314 of the Civil Code?
  • Did Lagon have knowledge of the existing lease, and if so, did he act with malice or wrongful motive?
  • Is Lapuz precluded by laches from recovery?
  • Was Lapuz properly awarded actual damages and attorney’s fees?
  • Was the dismissal of Lagon’s counterclaim for actual and moral damages correct?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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