Title
Supreme Court
Dizon vs. Court of Appeals
Case
G.R. No. 122544
Decision Date
Jan 28, 2003
Dispute over P300,000 payment: petitioners claim back rentals, respondent asserts partial property payment; SC rules no perfected sale, Alice Dizon lacked authority to bind petitioners.

Case Summary (G.R. No. 109666)

Procedural History and Judgment

On January 28, 1999, the Supreme Court rendered a judgment reversing previous decisions by the Court of Appeals from March 29, 1994, and subsequent resolutions. The Court ordered the trial court to execute its judgment from November 22, 1982, and mandated the petitioners to refund an amount of P300,000.00 received through Alice A. Dizon on June 20, 1975.

Issues Presented for Resolution

The Supreme Court addressed key issues, including whether there were grounds to suspend the Rules of Court, whether the P300,000.00 was intended as partial payment for the property or rent, the authority of Alice Dizon to accept the payment, and whether there was a perfected contract of sale. The Court determined that substantial justice must be served, but only compelling circumstances warrant a suspension of procedural rules.

Authority of Alice Dizon

The Court found no written proof of Alice Dizon's authority to act on behalf of the petitioners, emphasizing the requirement under Article 1874 of the Civil Code that an agent must have written authority for transactions involving the sale of real estate. Without such written mandate, any such sale is deemed void.

Payment Validity and Contractual Obligations

The acceptance of the P300,000.00 by Alice Dizon was critical because it claimed to give rise to a perfected contract of sale. However, since she was not a co-owner nor authorized by the co-owners, the Court concluded the petitioners could not be deemed to have received payment through Alice Dizon, nor was there a perfected contract of sale.

Implied Lease Renewal and Option to Purchase

The Court reaffirmed that the implied renewal of the one-year lease did not extend to the option to purchase, which had expired. It concluded that while the lease terms may have been implicit, special agreements, such as the purchase option, could not be presumed to carry over without explicit mention.

Denial of Motion for Reconsideration

The Court addressed the motions filed by the private respondent, including a request to suspend procedural rules, which it denied. The Court stated that litigation must reach a conclusion and emphasized the need for finality in judgments to avoid unnecessary prolongation of disputes.

...continue reading

Analyze Cases Smarter, Faster
Jur is a legal research platform serving the Philippines with case digests and jurisprudence resources. AI digests are study aids only—use responsibly.