Title
Francisco vs. Permskul
Case
G.R. No. 81006
Decision Date
May 12, 1989
A tenant sought a deposit refund after vacating leased premises; landlord withheld funds for alleged damages. Courts upheld the use of memorandum decisions, clarifying constitutional compliance guidelines.

Case Summary (G.R. No. 81006)

Factual Background

On May 21, 1984, the petitioner leased his apartment to the private respondent, who vacated the property on May 31, 1985. Following this, the respondent sought a refund of his deposit, minus a rental charge for ten additional days beyond the lease term. The petitioner refused to refund the full amount, asserting outstanding charges for utilities and damages to the property. Consequently, the private respondent filed a suit in the Metropolitan Trial Court of Makati.

Summary Judgment and Appeal Process

The Metropolitan Trial Court issued a summary judgment on October 11, 1985, which favored the private respondent by ordering the petitioner to refund P7,750.00 and P1,250.00 for attorney's fees. This decision was subsequently affirmed by the Regional Trial Court of Makati in a memorandum decision on January 14, 1987. The decision stated it adopted the findings and conclusions of the lower court, indicating no valid reason to disturb its judgment.

Court of Appeals Rulings

Upon appeal to the Court of Appeals, the private respondent's petition for review was denied on September 29, 1987, with subsequent motions for reconsideration also being denied. The petitioner challenged the validity of the memorandum decision based on its purported failure to clearly articulate the facts and legal principles on which it was based, as mandated by Article VIII, Section 14 of the Constitution.

Constitutional Mandate

Article VIII, Section 14 of the 1987 Constitution requires courts to clearly and distinctly state the facts and laws upon which a decision is based. The rationale for this requirement is to ensure that the losing party can understand the basis for the decision and allow for any potential review or appeal. The provision has been in effect since the 1935 Constitution and aims to secure a thorough and transparent judicial process.

Arguments Presented

The petitioner argued that the memorandum decision violated constitutional mandates, stipulating that it lacked the necessary clarity and transparency. Conversely, the private respondent contended that the memorandum decision was valid under B.P. Blg. 129, which permits courts to adopt findings by reference to expedite the judicial process.

Legal Interpretation of Section 40 of B.P. Blg. 129

Section 40 of B.P. Blg. 129 allows an appellate court to adopt the findings and conclusions from lower court decisions by reference. However, the Court recognized the need for caution in using this provision to prevent the perception of judicial negligence in handling appeals.

Court's Analysis and Conclusion

After reviewing the petitioner's claims regarding the memorandum decision's legality, the Court determined that the prior case (Romero v. Court of Appeals) upheld the use of memorandum decisions under similar circumstances. It concluded that the challenge against the memorandum decision was not sufficient to declare Section 40 unconstitutional,

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