G.R. No. 170029 - Sameer Overseas Placement Agency, Inc. vs. Bajaro

Sofia P. Martinez was the registered owner of two parcels of land (Lot Nos. 50 and 106 of the Tacloban City Cadastre, covered by TCT No. 2915) located at No. 84 Justice Romualdez St., Tacloban City.
On October 25, 1961, Sofia leased the Lots to Yu Siong, father of the president and stockholders of Sen Po Ek Marketing Corporation, for a period of ten (10) years, with the lease contract requiring the construction of a commercial building.
A commercial building was constructed on the property around 1963 and was later declared in the name of Sen Po Ek for taxation purposes.

The original lease expired on October 25, 1971, and was renewed on September 20, 1973 between Sofia and the wife of Yu Siong, Lim Hua. The renewed contract explicitly transferred ownership of the building to Sofia as of October 1, 1973.
Several renewals ensued, with the last written contract executed on March 24, 1982, valid until January 1, 1987, after which the lease was no longer renewed by the parties.
Despite the lease expiry, Sen Po Ek continued occupying and paying rentals to Sofia, and after her death in August 1989, the payments were made to her heirs through Teodora P. Martinez, a private respondent.

Sofia sold the lots and the building to her daughter, Teodora P. Martinez, via a deed of sale executed in 1979 but notarized only on November 5, 1985.
On November 11, 1989, Teodora P. Martinez sent a letter notifying Sen Po Ek of her intention to sell the property and authorizing Mrs. Remedios Petilla to negotiate with interested parties.
Sen Po Ek received the letter on December 12, 1989 and made an offer to purchase at P6,000 per square meter through a written letter dated December 27, 1989 by Consorcio Yu Siong.
Around the same period, respondent Juanito Tiu Uyping, Jr., after being informed of the sale by a third party, along with his brothers, enquired about the property from Governor Leopoldo Petilla, setting in motion the subsequent transaction.

On January 9, 1990, Sen Po Ek filed a verified complaint in the RTC of Palo, Leyte, seeking annulment of the deed of absolute sale executed on January 12, 1990 by Teodora in favor of the Tiu Uyping brothers.
The trial court rendered a decision on February 27, 1992, ruling in favor of Sen Po Ek by ordering the rescission of the deed of absolute sale and declaring the corporation’s right of first refusal.
Private respondents (the Tiu Uyping brothers) appealed the decision, and on October 13, 1997, the Court of Appeals reversed the trial court’s decision.
Petitioner Sen Po Ek eventually raised issues on appeal, prompting the current petition for review on certiorari.

Whether the Court of Appeals’ decision, by upholding the validity of the sale between Teodora and the Tiu Uyping brothers, is in accordance with law and jurisprudence despite clear evidence on record to the contrary.
Whether the Court of Appeals acted arbitrarily and capriciously in holding that Sen Po Ek has no legal or equitable right to purchase the property, notwithstanding its long-term occupancy of the leased premises.
Whether the Court of Appeals erred in affirming the validity of the deed of absolute sale between Teodora and the Tiu Uyping brothers, given the questionable legitimacy of the initial sale from Sofia to Teodora.
Whether the Court of Appeals improperly weighed the testimony of Governor Petilla over that of Sen Po Ek’s representative, Alfredo Yu Siong, thereby discrediting the Corporation’s claim to a right of first refusal.