Case Digest (G.R. No. 181303)
Facts:
This case revolves around a petition for review on certiorari filed by Doris U. Sunbanun (petitioner) against Aurora B. Go (respondent), culminating in a decision by the Supreme Court on February 02, 2010. The events leading to this case took place in Cebu City, where on July 7, 1995, Aurora B. Go entered into a one-year lease agreement with Doris U. Sunbanun for the entire ground floor of a residential house owned by the petitioner, set to expire on July 7, 1996. As part of the lease terms, the respondent paid a deposit of ₱16,000 to cover damages and unpaid rent. During the lease period, the respondent accepted lodgers in her unit, primarily family members, generating a monthly income of ₱15,000.
However, tensions emerged when, in March 1996, the petitioner forcibly ejected the respondents' lodgers, stating they could only stay until April 15, 1996, effectively terminating the lease contract. Following this ejection, the respondent filed a complaint on May 10, 1996, seeki
Case Digest (G.R. No. 181303)
Facts:
Lease Agreement and Initial Dispute
Petitioner Doris U. Sunbanun owned a residential house at No. 68-F Junquera Street, Cebu City. On 7 July 1995, respondent Aurora B. Go leased the entire ground floor of the house for one year, expiring on 7 July 1996. Respondent paid a deposit of P16,000 as security for damages and unpaid rent. To earn extra income, respondent accepted lodgers, mostly relatives, earning P15,000 monthly. Respondent paid rent until March 1996, when petitioner informed the lodgers they could stay only until 15 April 1996, as she was terminating the lease. The lodgers left by 15 April 1996, and petitioner padlocked the vacated rooms.
Legal Action and Trial Court Proceedings
On 10 May 1996, respondent filed a damages suit, claiming lost income of P45,000 from April to June 1996 and travel expenses from Hongkong. Petitioner argued that respondent violated the lease by subleasing and that the lease expired on 7 July 1996. Petitioner also moved to dismiss the complaint for failure to comply with barangay conciliation. During pre-trial, petitioner moved for judgment on the pleadings, which respondent did not oppose. The trial court ruled in favor of respondent, awarding P45,000 in actual damages and P8,000 in attorney’s fees, finding that respondent’s actions were within the lease terms.
Court of Appeals Decision
Both parties appealed. The Court of Appeals modified the trial court’s decision, awarding additional moral damages (P50,000), exemplary damages (P50,000), and costs of the suit. The appellate court held that petitioner’s pre-termination of the lease and ejection of lodgers constituted breach of contract and bad faith.
Issues:
- Whether the Court of Appeals erred in affirming the award of actual damages.
- Whether the Court of Appeals erred in awarding moral and exemplary damages and costs of the suit.
- Whether the Court of Appeals erred in affirming the award of attorney’s fees.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)