Case Summary (G.R. No. 1300)
Facts of the Case
The Municipality of Paombong entered into a "Contract of Lease of Fishpond" with Luis San Juan on March 10, 1960. The lease was for five years, starting January 1, 1961, with an annual rental of P101,500. Following a devastating typhoon that struck Central Luzon on July 2, 1961, San Juan proposed to extend the lease by another five years to recover from losses, offering P20,000 for repairs. The Municipal Council enacted resolutions to support this extension, culminating in the execution of an "Extension of Lease Agreement" on July 16, 1962.
Legal Developments
Despite previous approvals, the newly elected Municipal Council, in Resolution No. 162 dated April 30, 1964, revoked the "Extension of Lease Agreement," citing its conflict with public policy and municipal powers. The matter was forwarded to the Provincial Fiscal for legal opinion, which found the contract valid. Consequently, the municipality filed a Petition for Declaratory Relief against the validity of the extension and sought to declare its right to conduct a public bidding for the fishpond upon the expiration of the original lease.
Trial Court Decision
On September 28, 1965, the Court of First Instance of Bulacan ruled that the "Extension of Lease Agreement" was null and void. The municipality then appealed the ruling, questioning if the lease could be extended without public bidding before i
...continue readingCase Syllabus (G.R. No. 1300)
Background of the Case
- This case involves an appeal by the Municipality of Paombong, Bulacan, against the decision of the Court of First Instance of Bulacan dated September 28, 1965.
- The trial court declared the "Extension of Lease Agreement" dated July 16, 1962, as null and void and dismissed the Petition for Declaratory Relief filed by the petitioner.
- The petitioner is the registered owner of a fishpond consisting of three lots, encompassing approximately 243.9153 hectares, located in the barrios of Masukol and Sta. Cruz, as outlined in Original Certificate of Title No. 478.
Lease Agreement Details
- On March 10, 1960, the Municipality of Paombong, represented by Mayor Jose S. F. Lopez, entered into a "Contract of Lease of Fishpond" with respondent Luis San Juan.
- The lease was for five years, from January 1, 1961, to December 31, 1965, with an annual rental of P101,500.00.
- Luis San Juan was the highest bidder during a public bidding held on February 26, 1959.
Circumstances Leading to the Extension Proposal
- A devastating typhoon in July 1961 caused significant damage to the fishpond, prompting San Juan to propose an extension of the lease for another five years (January 1, 1966, to December 31, 1970).
- The proposal included a condition where San Juan would contribute P20,000.00 for repairs to the dikes and clear Lot 3 to convert it into another fishpond.
Municipal Council Actions
- The Municipal Council of Paombong expressed its approval of San Juan's extension proposal through Resolution No. 237 on August 28, 1961.
- This resolution was approved by the Provincial Board of Bulacan on September 12, 1961