Case Digest (G.R. No. 147695)
Facts:
On July 19, 1974, Patricio Pagtalunan, predecessor-in-interest of petitioner Manuel C. Pagtalunan, entered into a Contract to Sell with Rufina Dela Cruz Vda. de Manzano, whereby Patricio agreed to sell and Dela Cruz to buy a house and lot (236 sqm, TCT No. T-10029) for ₱17,800. Dela Cruz paid ₱1,500 down and ₱150 monthly until December 1979, totaling ₱12,950; thereafter, payments ceased. A separate “Kasunduan” of November 18, 1979 evidences a ₱3,000 loan, payable in one year or added to the balance. Patricio allegedly harassed Dela Cruz, demolished parts of her house, and accepted late payments in 1980. He died in 1992; his sole heir, petitioner, in 1994. On March 5, 1997, petitioner demanded Dela Cruz vacate. Upon refusal, he filed an unlawful detainer complaint before the MTC of Guiguinto on April 8, 1997 seeking possession, forfeiture of payments as rent, enforcement of the Kasunduan, monthly rentals of ₱500, attorney’s fees, and costs. On December 22, 1998, the MTC ruled forCase Digest (G.R. No. 147695)
Facts:
- Contract to Sell and Terms
- On July 19, 1974, Patricio Pagtalunan (vendor) entered into a Contract to Sell with Rufina Dela Cruz Vda. de Manzano (vendee) for half of a 236 sqm house and lot (TCT No. T-10029). Consideration was ₱17,800: ₱1,500 downpayment, ₱150 monthly installments. Immediate occupancy was granted. The contract provided for automatic rescission without judicial declaration if any installment remained unpaid for 90 days, with all payments and improvements deemed rent or damages, obliging the vendee to vacate.
- Respondent paid ₱12,950 and allegedly stopped installments after December 1979. A “Kasunduan” of November 18, 1979 evidenced a ₱3,000 loan from vendor, repayable in one year or added to the sale balance.
- Respondent’s Allegations and Possession History
- Respondent claimed continuous payment into 1980, refusal of vendor’s offer to refund her payments if she surrendered the house, and harassment including partial demolition of the house. She admitted some defaults after December 1979 but asserted later payments reduced her balance to ₱5,650.
- On September 14, 1981, an agreement suspended payments until December 1981. Vendor nevertheless resumed demolitions, prompting barangay intervention, which allowed suspension of payments until return of taken materials. Vendor died in 1992; respondent did not resume installments due to the demolition and ejectment suit.
- Judicial Proceedings
- On April 8, 1997, petitioner filed unlawful detainer in MTC Guiguinto. MTC (Dec. 22, 1998) held the contract was resolved by respondent’s default, her possession became by mere tolerance, and ordered her to vacate, pay ₱113,500 in rent (₱500/month since January 1980), future rent, and ₱25,000 attorney’s fees.
- RTC Malolos (June 25, 1999) reversed and dismissed for lack of merit, ruling that rescission requires judicial declaration. Petitioner’s motions were denied (Aug. 10, 1999). CA (Oct. 30, 2000; Reso. Mar. 23, 2001) denied petitioner’s petition, holding RA 6552 (Maceda Law) applied and the contract was not validly rescinded.
Issues:
- Whether the Contract to Sell was validly rescinded in compliance with RA 6552 (Maceda Law).
- Whether respondent is entitled to the Maceda Law’s grace periods and protection, thereby sustaining her lawful possession despite default.
- Whether the CA erred in applying RA 6552 when the issue was not raised at the lower courts.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)