Case Summary (G.R. No. 177809)
Petitioner
Spouses Omar and Moshiera Latip, who seek review of the appellate court’s decision ordering their ejectment and payment of unpaid rentals.
Respondent
Rosalie P. Chua, lessor of the two cubicles and appellee below, who filed an unlawful detainer suit for unpaid rentals and damages.
Key Dates
• Lease contract executed December 1999 for a six‐year term (December 1999–December 2005)
• Commencement of suit: July 6, 2001
• Metropolitan Trial Court (MeTC) decision: January 13, 2004
• Regional Trial Court (RTC) reversal: September 24, 2004
• Court of Appeals (CA) reinstatement of MeTC decision: October 16, 2009
Applicable Law
• 1987 Philippine Constitution (decision date post-1990)
• Rule 129, Rules of Court (judicial notice)
• Civil Code, Articles 1371–1373 (contract interpretation)
Facts
- Rosalie and the Latips executed a six‐year lease over two cubicles at a monthly rent of ₱60,000, subject to a 10% yearly increase. The contract prohibited sublease or alterations without written consent.
- The Latips occupied the cubicles in December 1999. Rosalie later demanded unpaid rentals for 2000 onward.
- The Latips produced three receipts totaling ₱2,570,000, purportedly covering full rental for the entire lease term; Rosalie characterized these as “goodwill” payments, not full advance rental.
MeTC Decision
The MeTC ruled for Rosalie, ordering the Latips to vacate and pay:
• ₱720,000 for arrears (Dec. 1999–Dec. 2000)
• ₱72,000 per month (Jan. 2001–Dec. 2002), plus 10% annual increases
• Attorney’s fees and appearance fees, plus costs
RTC Decision
The RTC found the lease contract defective (missing signatures, dates, notarization) and accepted the Latips’ claim of full payment. It declared a valid six‐year lease fully paid, denied ejectment, and awarded the Latips damages and attorney’s fees.
CA Decision
The CA held the lease contract valid despite formal defects and took judicial notice—without sufficient proof—of a local practice of paying “goodwill” money in Baclaran. It reinstated the MeTC decision ordering ejectment and payment.
Issue
Whether the Latips should be ejected based on unpaid rentals, and whether the CA properly took judicial notice of a local “goodwill” practice to characterize the ₱2,570,000 payments.
Rule on Judicial Notice
Under Rule 129, judicial notice is mandatory for matters of public and political history; discretionary for facts of public knowledge or unquestionable demonstration. Three requisites for discretionary notice:
- Common and general knowledge
- Well settled and not doubtful
- Within the court’s territorial jurisdiction
Court’s Analysis on Judicial Notice
The Supreme Court found the CA’s judicial notice improper:
• Neither trial court nor RTC recognized any common practice of goodwill payments.
• Rosalie herself had to submit a joint sworn declaration of stallholders, contradicting the notion of a fact so notorious it required no proof.
• Judicial notice must be exercised with caution; any reasonable doubt mandates refusal.
Contract and Receip
Case Syllabus (G.R. No. 177809)
Procedural History
- MeTC, Branch 78, Parañaque City, Civil Case No. 2001-315
• Granted ejectment and rent arrearages in favor of Rosalie Chua
• Ordered spouses Latip to vacate and pay P720,000 (December 1999–2000) plus P72,000/month (2001–2002) with 10% yearly increase, attorney’s fees and costs - RTC, Branch 274, Parañaque City, Civil Case No. 04-0052
• Reversed MeTC decision, held lease valid and fully paid via P2,570,000 receipts
• Declared in favor of spouses Latip and awarded them moral and exemplary damages, attorney’s fees and costs - CA, CA-G.R. SP No. 89300
• Reversed RTC, reinstated MeTC decision in toto
• Took judicial notice of “goodwill money” practice in Baclaran area - Supreme Court (G.R. No. 177809, October 16, 2009)
• Granted petition for review on certiorari
• Reversed CA; spouses Latip liable for unpaid rentals minus P2,570,000 advance
Facts
- Rosalie Palaa Chua is owner of Roferxane Building, 158 Quirino Ave. corner Redemptorist Road, Barangay Baclaran, Parañaque City
- July 6, 2001: Rosalie filed unlawful detainer plus damages against spouses Omar and Moshiera Latip
- Attached lease contract for two cubicles (56 sqm.) at P60,000/month with 10% annual increase for six years (Dec 1999–Dec 2005)
- Spouses Latip occupied cubicles in December 1999 and allegedly paid P2,570,000 by three receipts in Rosalie’s handwriting
Contract of Lease (December 1999)
- Parties: Rosalie Chua (lessor) and spouses Omar & Moshiera Latief (lessees)
- Subject: Two cubicles on 1st & 2nd floors, Roferxane Building, 56 sqm.
- Term: Six years, from December 1999 to December 2005
- Rent: P60,000/month in Philippine currency, 10% yearly increase
- Lessee obligations: pay water and electric, no subletting or alterations, maintain premises, no flammables
- Remedies: lessor may terminate for n