Title
Acasio vs. Corporacion de los PP. Dominicos de Filipinas
Case
G.R. No. L-9428
Decision Date
Dec 21, 1956
Sub-lessee Domingo Acasio refused to pay increased rent, claiming lease rights under Article 1687 of the Civil Code. Courts ruled he was not the direct lessee, affirmed the rent hike as reasonable, and ordered eviction for failing to pay.

Case Summary (G.R. No. 189774)

Facts of the Case

Esteban Garcia leased the property for a monthly rent of P75 and sub-leased two rooms to the Acasio spouses for P25 per month. In 1950, Garcia sought to evict the Acasios, but his complaint for illegal detainer was dismissed in early 1952 based on certain equitable circumstances. After Garcia vacated in January 1952, Mrs. Acasio approached the property’s management to lease the house at a new rate of P100 per month. Despite initial reluctance, she paid the increased rent for February and later sought clarification regarding the rent increase through a letter from her husband, which was not well-received by the bank, leading to an ongoing dispute about the monthly rental payments.

Judicial Proceedings

Following their refusal to pay the increased rent, an ejectment action was filed against Acasio in September 1952. The Municipal Court ruled in favor of the Acasios, allowing them to continue renting at the old rate of P75 until July 31, 1953, with an obligation to pay the original rent. The Court of Appeals later reversed this ruling, asserting that Acasio's failure to pay the adjusted rental violated the lease terms, resulting in an order for him to vacate the premises and pay P100 monthly from March 1952.

Legal Principles Considered

The Court of Appeals based its decision on Article 1687 of the New Civil Code, which addresses lease agreements without fixed periods, presuming a contract from year to year or month to month based on payment frequency. Importantly, the appellate court noted that the Acasios had lost their standing as lessees post-April 4, 1945, when Garcia assumed full lease responsibilities due to the Acasios being detained during the war. This distinction was critical to determining their rights under the lease.

Court's Analysis on Lease Status and Tenant Rights

The Supreme Court upheld the Court of Appeals' findings, rejecting Acasio's claim to tenancy from 1945 to 1952. The court established that Acasio's negotiation for a new lease indicated that he was not considered a lessee but rather a sub-lessee, thus not entitled to the protections afforded to primary lessees under Article 1687. It was ruled that such legal protections did not extend to sub-lessees lacking direct contractual relationships with the property owner, further clarifying that the concept of contractual freedom governs lease agreements.

Contractual Consent and Retention of Rights

Despite Acasio’s argument regarding the circumstances of Mrs. Acasio's payment, the court maintained that legal consent was valid even if entered into reluctantly. The judgment emp

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