Title
Madriaga vs. Court of Appeals
Case
G.R. No. 76294
Decision Date
Jul 14, 1988
A tenant initiates eviction proceedings against a sublessee following the termination of the lease agreement, contesting the grounds for ejectment.
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Case Digest (G.R. No. 76294)

Facts:

  • Marlene Madriaga (petitioner) leased a two-storey commercial building in Manila from the Rodriguezes and Chicos in 1973 for her pharmaceutical business.
  • Madriaga subleased parts of the upper floor: one to Dr. Rogelio Sangalang in August 1973 for a dental clinic and another to Mila Hatanaka in 1974 for residential use, both at P300.00 monthly.
  • The sublease agreements allowed Madriaga to reclaim the premises upon notifying the sublessees if needed for her business.
  • By 1978, Madriaga's business expanded, leading her to renew her lease and terminate the subleases.
  • Sangalang vacated as required, but Hatanaka refused to leave.
  • Madriaga filed an ejectment action against Hatanaka, which was initially dismissed by the Metropolitan Trial Court.
  • The Regional Trial Court reversed the dismissal and ordered Hatanaka's eviction.
  • Hatanaka appealed to the Court of Appeals, which ruled in her favor, dismissing Madriaga's complaint.
  • Madriaga subsequently filed a petition for review.

Issue:

  • (Unlock)

Ruling:

  • The Supreme Court granted Madriaga's petition, reversing the Court of Appeals' decision.
  • The Court ordered Hatanaka to vacate the premises an...(Unlock)

Ratio:

  • The Supreme Court determined that the classification of the premises occupied by Hatanaka was crucial in assessing the applicability of B.P. Blg. 25.
  • The character of a property is defined by its intended use; although the building was commercial, Hatanaka's use was residential, bringing it under the Rent Control Law.
  • The temporary nature of the agre...continue reading

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