Case Digest (G.R. No. 125986) Core Legal Reasoning Model
Facts:
In the case of Luxuria Homes, Inc., and/or Aida M. Posadas versus James Builder Construction and/or Jaime T. Bravo, the petitioner Aida M. Posadas, jointly owning a 1.6-hectare property in Sucat, Muntinlupa with her two minor children, initially entered into negotiations with respondent Jaime T. Bravo for the development of the property into a residential subdivision. On May 3, 1989, Posadas authorized Bravo to negotiate with squatters occupying the land to vacate. Subsequently, on December 11, 1989, Posadas and her children assigned the property to petitioner Luxuria Homes, Inc., purportedly for organizational and tax reasons, with Bravo witnessing the deed execution. Relations soured by 1992 when Posadas rejected proposed management contracts from Bravo. In retaliation, Bravo demanded payment amounting to P1,708,489 for services rendered including relocation of squatters, architectural design, surveying, and fencing. Posadas refused, leading James Builder Construction and Bra
Case Digest (G.R. No. 125986) Expanded Legal Reasoning Model
Facts:
- Ownership and Negotiations
- Petitioner Aida M. Posadas and her two minor children co-owned a 1.6-hectare property in Sucat, Muntinlupa, occupied by squatters.
- Posadas authorized private respondent Jaime T. Bravo to negotiate with squatters for their removal on May 3, 1989.
- Respondent Bravo engaged with the squatters while negotiations proceeded.
- Transfer and Incorporation
- On December 11, 1989, Posadas and her children transferred the property to petitioner Luxuria Homes, Inc. through a Deed of Assignment, for organizational and tax purposes.
- Jaime T. Bravo witnessed the Deed of Assignment and the Articles of Incorporation of Luxuria Homes, Inc.
- Breakdown of Relationship and Litigation
- By 1992, Posadas and Bravo's relationship soured due to disagreements over management contracts for property development.
- Bravo demanded payment of P1,708,489.00 for relocation of squatters, architectural design, site development plans, survey, and fencing.
- Posadas refused payment, leading to a complaint for specific performance filed by James Builder Construction and Jaime T. Bravo against Posadas and Luxuria Homes, Inc. in September 1992.
- Trial Court Proceedings
- Posadas was declared in default on September 27, 1993, and private respondents presented evidence ex-parte.
- Trial court ordered Posadas and Luxuria Homes, Inc. to pay various amounts including the balance of P1,708,489.00 for services, P1,500,000.00 actual damages, moral and exemplary damages, attorney's fees, and costs.
- Posadas was further ordered to execute the management contract.
- Appeals
- The Court of Appeals affirmed the trial court’s decision with modification: deleting moral damages (corporate plaintiff) and reducing exemplary damages to P50,000.00.
- This Court initially denied due course to petitioners' review but later reinstated it after reconsideration, deleting exemplary damages and attorney's fees and reducing actual damages to P500,000.00.
Issues:
- Whether private respondents sufficiently proved their claims ex-parte after petitioners’ default.
- Whether Luxuria Homes, Inc. could be held liable jointly and solidarily for the obligations entered by Posadas.
- Whether petitioners can be compelled to execute a management contract with private respondents.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)