Title
Supreme Court
Antipolo Properties, Inc. vs. Nuyda
Case
G.R. No. 171832
Decision Date
Oct 12, 2009
Petitioner failed to fulfill obligations under a 1991 agreement with respondent, leading to a breach of contract. Courts upheld the validity of the agreement, enforcing petitioner’s duty to transfer land and pay compensation.

Case Summary (G.R. No. 171832)

Contractual Agreements and Obligations

On February 14, 1991, Antipolo Properties, Inc. entered into a preliminary agreement with MUMI, whereby the association’s members were to vacate their occupied lands in exchange for a designated resettlement area developed by the petitioner. Subsequently, on June 7, 1991, Nuyda, a member of MUMI, signed a separate agreement with Antipolo Properties, stipulating the identification of a specific lot in the resettlement area, and the payment of disturbance compensation to him in return for vacating the land he was occupying. However, in 1998, Antipolo Properties failed to fulfill its obligations under the June 7 Kasunduan, precipitating a complaint by Nuyda for specific performance and damages before the Regional Trial Court (RTC).

Trial Court Findings

The RTC, in its May 20, 2001 decision, found both the February 14 and June 7 agreements to be valid and enforceable. The court mandated Antipolo Properties to transfer ownership and possession of the identified 2,880 square meters of land, pay disturbance compensation as agreed, and reimburse damages incurred by Nuyda due to the loss of property and plantings. The decision was appealed by the petitioner.

Court of Appeals Rulings

In its August 31, 2005 decision, the Court of Appeals upheld the RTC's ruling in full, stating that the arguments presented by Antipolo Properties lacked sufficient evidence and were inconsistent with the documented agreements. The appellate court also clarified that the inclusion of the company president's rubber-stamped signature did not invalidate the agreements, as the terms were clear, legal, and acceptable under prevailing laws.

Petitioner’s Arguments and Court’s Response

In the petition for review, Antipolo Properties contended that Nuyda was only a caretaker and not a legitimate occupant entitled to benefits under the agreement. The Supreme Court found this argument unpersuasive, noting that the terms of the June 7 Kasunduan explicitly recognized Nuyda's status and his rights to the resettlement provisions. The principle of estoppel was invoked, preventing Antipolo Properties from asserting the opposite claim after having previously acknowledged Nuyda’s rights.

Contractual Principles Upheld

The Supreme Court reaffirmed that contracts serve as the governing law between the parties involved. It underscor

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