Title
Oro Cam Enterprises, Inc. vs. Court of Appeals
Case
G.R. No. 128743
Decision Date
Nov 29, 1999
A commercial lease dispute arose when Oro Cam Enterprises refused increased rent, leading to unlawful detainer. Courts ruled ejectment binding on sublessees, dismissing Oro Cam's claims.

Case Summary (G.R. No. 128743)

Facts of the Case

Angel Chaves, Inc., the owner of a commercial building in Cagayan de Oro City, leased the premises to various business establishments, including Oro Cam Enterprises, Inc. Following the expiration of lease contracts on June 30, 1989, the private respondent sought new lease agreements with increased rentals, demanding compliance from the lessees, including Oro Cam Enterprises. When the lessees failed to comply, Angel Chaves filed a complaint for unlawful detainer in the Municipal Trial Court in Cities, initiating Civil Case No. 13040.

Legal Proceedings Overview

The Municipal Trial Court rendered a decision on July 23, 1992, dismissing complaints against some defendants, including Oro Cam Enterprises, but ordered the ejectment of another defendant, Alfredo Co. However, the RTC later reversed the MTCC's ruling, ordering all defendants, including Oro Cam, to vacate the premises and pay damages. Vicente Manzano, the brother of one of the defendants, attempted to appeal this decision but was ultimately dismissed for being out of time.

Execution Motion and Petition for Certiorari

Following appellate affirmation, Angel Chaves filed a motion for a writ of execution against Constancio Manzano and Oro Cam Enterprises. The petitioner opposed this, arguing that it had not been impleaded as a party in the unlawful detainer case. Oro Cam subsequently filed a petition for certiorari against the RTC, seeking a preliminary injunction to halt the execution.

Issuance of Preliminary Injunction

The RTC initially granted Oro Cam Enterprises a preliminary injunction, preventing the enforcement of the writ of execution. However, Angel Chaves filed a petition for certiorari with the Court of Appeals, which later annulled the RTC’s injunction order stating that the preliminary injunction was void.

Petitioner's Contentions

In its petition, Oro Cam Enterprises raised two primary issues: first, whether it was privy to the lease agreement between Angel Chaves and Constancio Manzano; and second, whether the Court of Appeals acted with gravely excessive discretion in declaring the trial court's injunction null. Petitioner argued its distinct corporate status and its exclusion from the original unlawful detainer case.

Court of Appeals' Reasoning and Decision

The Court of Appeals affirmed the lower court's dismissal of the injunction, finding that Oro Cam was indeed privy to the lease agreement as evidenced by judicial admissions made in court, such as rental payments made by Oro Cam to Constancio Manzano. Consequently, Oro Cam was found to be a party to the leasing arrangements and therefore subject to the outcomes of the unlawful detainer case.

Impact of the Decision

The appellate court concluded that it was inappropriate for Oro Cam to challenge jurisdiction at such a late stage, especial

...continue reading

Analyze Cases Smarter, Faster
Jur is a legal research platform serving the Philippines with case digests and jurisprudence resources.