Case Digest (G.R. No. L-31920)
Facts:
Limpan Investment Corporation v. Lim Sy, G.R. No. L-31920, April 08, 1988, Supreme Court Second Division, Paras, J., writing for the Court (Yap, Chairman, Melencio-Herrera and Sarmiento, JJ., concurring; Padilla, J., took no part). Petitioner Limpan Investment Corporation (joined originally by Isabelo P. Lim) sought ejectment of respondent Lim Sy, who had occupied Nos. 706–708 Misericordia Street since 1953 under a month-to-month tenancy. Rental payments were monthly; amounts varied early on but a controversy over reasonable rental arose. In October 1954 Isabelo P. Lim sued for ejectment in Municipal Court (Civil Case No. 33492); after trial the Municipal Court dismissed, the owner appealed to the Court of First Instance (CFI) of Manila, which denied ejectment but fixed rental at P361 for the two doors from January 1, 1954. The owner appealed to the Court of Appeals (CA), which on April 22, 1957 affirmed denial of ejectment and set the reasonable rent at P600 (CA-G.R. No. 17476-R).Following the CA decision, Lim Sy paid rent at the CA-fixed rate. In July 1959 the owners purported to increase rent to P750, and filed a Municipal Court ejectment action (Civil Case No. 72309); that court dismissed on res judicata grounds (december 24, 1959), and that dismissal became final. On June 25, 1963 Limpan (claiming sole ownership) sent notice terminating the monthly lease effective June 30, 1963 and offering continued occupation at P950 monthly beginning July 1, 1963; counsel for Lim Sy refused and the tenant continued to occupy. On August 21, 1963 Limpan filed an ejectment action in the City Court of Manila seeking ejectment and P950 rent from July 1, 1963 onward. The City Court denied the defendant’s motion to dismiss; after trial the CFI (on record) dismissed the complaint on res judicata grounds and awarded P500 attorney’s fees to the defendant. The Court of Appeals (CA G.R. No. 35152-R) affirmed the...(Subscriber-Only)
Issues:
- May a lessor terminate a month-to-month lease by oral or written notice at the end of any month and, upon such termination, demand a new rental rate?
- Does the rule of res judicata bar the lessor’s subsequent ejectment action after prior judicial determinations fixing rent or aft...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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