Title
Paterno vs. Yan
Case
G.R. No. L-12218
Decision Date
Feb 28, 1961
A lease dispute arose over unpaid rent and oral modifications; the Supreme Court ruled partial performance (semi-concrete building) exempts the oral agreement from the Statute of Frauds, remanding for new trial.

Case Digest (G.R. No. L-12218)

Facts:

Maria Paterno, et al. v. Jao Yan, G.R. No. L-12218. February 28, 1961, the Supreme Court. Reyes, J.B.L., J., writing for the Court.

By a notarized contract dated 3 June 1948, the appellees (lessors), represented by their attorney-in-fact Martina Paterno, leased to defendant-appellant Jao Yan a corner parcel in Escolta Street and Plaza Moraga, Manila (TCT No. 7768). The written lease was for seven (7) years commencing 15 July 1948; it required the lessee to construct a building “to be made of strong wooden materials,” to pay monthly rent of P5,500, and to pay taxes and assessments on the building.

On 20 May 1955 (amended 20 September 1955) the lessors sued to recover unpaid rentals (P23,250 for March–June and early July 1955), real estate taxes and penalties on the building (P7,680 for 1953–1955), attorney’s fees (P2,500), and possession/recovery of the building. In his answer the lessee averred that the parties orally modified and extended the written lease from seven to ten years in consideration of his erecting a semi-concrete building (instead of the wooden structure), which he actually constructed at a cost of about P13,000; he asserted that he withheld rents because the lessors refused to recognize the oral modification and that he suffered garnishment of rents by the plaintiffs’ actions. He counterclaimed for recognition of the modified agreement and for damages.

At trial the defendant offered testimonial proof and City Engineer documents relating to the semi-concrete structure to show the alleged oral modification and extension. The Court of First Instance of Manila sustained the plaintiffs’ objections and excluded the oral testimony and related evidence on the ground that they were barred by the ...(Subscriber-Only)

Issues:

  • Did the trial court err in excluding the appellant’s oral evidence and City Engineer documents as inadmissible under the Statute of Frauds?
  • If admissible, does the doctrine of part performance render the alleged oral modification (extension from seven to ten years and change to a semi‑concrete building) enforcea...(Subscriber-Only)

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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