Title
Oro Cam Enterprises, Inc. vs. Court of Appeals
Case
G.R. No. 128743
Decision Date
Nov 29, 1999
A commercial lease dispute arose when Oro Cam Enterprises refused increased rent, leading to unlawful detainer. Courts ruled ejectment binding on sublessees, dismissing Oro Cam's claims.

Case Digest (G.R. No. 128743)

Facts:

Oro Cam Enterprises, Inc. v. Court of Appeals, Former Fourth Division and Angel Chaves, Inc., G.R. No. 128743, November 29, 1999, Supreme Court Second Division, Mendoza, J., writing for the Court.

Private respondent Angel Chaves, Inc. (ACI) owned a commercial building in Cagayan de Oro and, on January 15, 1991, sued several occupants in the Municipal Trial Court in Cities (MTCC), Cagayan de Oro (Civil Case No. 13040), for unlawful detainer. The complaint alleged one‑year lease contracts executed July 31, 1988 covering the period July 1, 1988 to June 30, 1989 for several lessees, and that ACI had sent forms offering renewed leases for July 1, 1989 to June 30, 1990 at increased rental rates; lessees who refused the increased rent were demanded to vacate, prompting the ejectment suit.

In the MTCC defendant Constancio Manzano (with reference to Oro Cam Enterprises) answered, disputing the rent amounts and indicating arrangements involving Oro Cam. On July 23, 1992 the MTCC dismissed the complaint as to Manzano (Oro Cam), Melodia (Meltrade) and Marcoso (Queenie’s Jewelry) for lack of cause of action, but ordered ejectment as to another defendant. On appeal, the Regional Trial Court (RTC), Branch 23, Misamis Oriental, reversed the MTCC, ordered the four defendants ejected, fixed monthly rents for the occupants and assessed attorney’s fees and costs; that RTC decision was later rendered final after a petition for review filed by Vicente Manzano (as administrator) was dismissed by the Court of Appeals for tardiness and the dismissal was affirmed by this Court (G.R. No. 116933, resolution of Sept. 26, 1994).

After finality, ACI moved for writ of execution specifically against Constancio Manzano and Oro Cam Enterprises on January 9, 1995. Oro Cam opposed, claiming it was never impleaded in Civil Case No. 13040 and therefore execution against it would deprive it of possession without due process. Oro Cam then filed a petition for certiorari and prohibition with an application for preliminary injunction in the RTC, Branch 37 (Sp. Civil Case No. 95‑560), seeking to enjoin enforcement of the writ of execution; on December 7, 1995 the RTC granted the preliminary injunction, enjoining issuance or enforcement of any writ of execution in Civil Case No. 13040.

ACI sought relief before the Court of Appeals, which on November 27, 1996 annulled the RTC’s injunctive order and ordered dismissal of Sp. Civil Case No. 95‑560. Oro Cam then filed this petition for review on certiorari with the Supreme Court cha...(Subscriber-Only)

Issues:

  • Whether the Court of Appeals erred in holding that Oro Cam Enterprises, Inc. is privy to the lease between Angel Chaves, Inc. and Constancio Manzano.
  • Whether the Court of Appeals acted without or in excess of jurisdiction with grave abuse of discretion in declaring null and void the RTC order granting the w...(Subscriber-Only)

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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