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Prof. Joselito Guianan Chan's The Labor Code of the Philippines, Annotated Labor Standards & Social Legislation Volume I of a 3-Volume Series 2019 Edition (3rd Revised Edition)
 

 
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UNITED STATES SUPREME COURT JURISPRUDENCE
 

 
PHILIPPINE SUPREME COURT JURISPRUDENCE
 

   
March-1996 Jurisprudence                 

  • G.R. No. 91935 March 4, 1996 - RODOLFO QUIAMBAO v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 106043 March 4, 1996 - CAGAYAN DE ORO CITY LANDLESS RESIDENTS ASSOCIATION INC. v. COURT OF APPEALS, ET AL.

  • G.R. No. 109645 March 4, 1996 - ORTIGAS AND COMPANY LIMITED PARTNERSHIP v. TIRSO VELASCO, ET AL.

  • G.R. No. 115365 March 4, 1996 - ESMENIO MADLOS v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 118126 March 4, 1996 - TRANS-ASIA SHIPPING LINES v. COURT OF APPEALS, ET AL.

  • Adm. Matter No. MTJ-94-921 March 5, 1996 - AMPARO A. LACHICA v. ROLANDO A. FLORDELIZA

  • Adm. Matter No. MTJ-94-1009 March 5, 1996 - ALBERTO NALDOZA v. JUAN LAVILLES, JR.

  • G.R. No. 111501 March 5, 1996 - PHIL. FUJI XEROX CORPORATION, ET AL. v. NATIONAL LABOR RELATIONS COMMISSION

  • G.R. No. 113930 March 5, 1996 - PAUL G. ROBERTS, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 115548 March 5, 1996 - STATE INVESTMENT HOUSE INC. v. COURT OF APPEALS

  • Adm. Matter No. P-94-1039 March 6, 1996 - FE ALBANO MADRID v. RAYMUNDO RAMIREZ

  • G.R. Nos. 112858-59 March 6, 1996 - PEOPLE OF THE PHIL. v. RALPHY ALCANTARA, ET AL.

  • G.R. No. 120193 March 6, 1996 - LUIS MALALUAN v. COMMISSION ON ELECTIONS, ET AL.

  • Adm. Case No. CBD-174 March 7, 1996 - GIOVANI M. IGUAL v. ROLANDO S. JAVIER

  • G.R. No. 66555 March 7, 1996 - LEONCIO MEJARES, ET AL. v. JUAN Y. REYES, ET AL.

  • G.R. Nos. 95353-54 March 7, 1996 - PEOPLE OF THE PHIL. v. PAULINO PAT

  • G.R. No. 109390 March 7, 1996 - JGB and ASSOCIATES v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 112445 March 7, 1996 - PEOPLE OF THE PHIL. v. CARLOS V. PATROLLA, JR.

  • G.R. No. 113710 March 7, 1996 - PEOPLE OF THE PHIL. v. FERDINAND V. JUAN, ET AL.

  • G.R. No. 116011 March 7, 1996 - PEOPLE OF THE PHIL. v. RHODESA B. SILAN

  • G.R. No. 117650 March 7, 1996 - SULPICIO LINES v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 120905 March 7, 1996 - RENATO U. REYES v. COMMISSION ON ELECTIONS, ET AL.

  • G.R. No. 95260 March 8, 1996 - PEOPLE OF THE PHIL. v. WILFREDO C. PRADO

  • G.R. No. 110983 March 8, 1996 - REYNALDO GARCIA v. COURT OF APPEALS, ET AL.

  • Adm. Case No. 2024 March 11, 1996 - SALVADOR T. CASTILLO v. PABLO M. TAGUINES

  • G.R. No. 108625 March 11, 1996 - ALLIANCE OF DEMOCRATIC FREE LABOR ORGANIZATION v. BIENVENIDO LAGUESMA, ET AL.

  • G.R. No. 113194 March 11, 1996 - NATIONAL POWER CORPORATION v. COURT OF APPEALS, ET AL.

  • G.R. No. 119381 March 11, 1996 - MARCOPPER MINING CORPORATION v. JOSE BRILLANTES

  • G.R. No. 96882 March 12, 1996 - EUTIQUIANO PAGARA, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 109800 March 12, 1996 - PEOPLE OF THE PHIL. v. WILFREDO N. BAUTISTA

  • G.R. No. 114388 March 12, 1996 - PEOPLE OF THE PHIL. v. DOMINGO TRILLES, ET AL.

  • Adm. Matter No. RTJ-94-4-156 March 13, 1996 - IN RE: FERNANDO P. AGDAMAG

  • Adm. Matter No. RTJ-96-1344 March 13, 1996 - VERONICA GONZALES v. LUCAS P. BERSAMIN

  • G.R. No. 101332 March 13, 1996 - PEOPLE OF THE PHIL. v. CLARO BERNAL

  • G.R. No. 101699 March 13, 1996 - BENJAMIN A. SANTOS v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. Nos. 104088-89 March 13, 1996 - PEOPLE OF THE PHIL. v. VICENTE JAIN, ET AL

  • G.R. No. 108743 March 13, 1996 - PEOPLE OF THE PHIL. v. ARNALDO B. DONES

  • G.R. No. 112193 March 13, 1996 - JOSE E. ARUEGO, JR., ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 112546 March 13, 1996 - NORTH DAVAO MINING CORPORATION, ET AL. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 119073 March 13, 1996 - PEOPLE OF THE PHIL. v. ALBERTO DIAZ

  • G.R. No. 120223 March 13, 1996 - RAMON Y. ALBA v. DEPUTY OMBUDSMAN, ET AL.

  • G.R. No. 101070 March 14, 1996 - BALAYAN COLLEGES, ET AL. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 102062 March 14, 1996 - PEOPLE OF THE PHIL. v. CAMILO FERRER, ET AL.

  • G.R. No. 104685 March 14, 1996 - SABENA BELGIAN WORLD AIRLINES v. COURT OF APPEALS, ET AL.

  • G.R. No. 119706 March 14, 1996 - PHILIPPINE AIRLINES, INC. v. COURT OF APPEALS, ET AL.

  • G.R. No. 73592 March 15, 1996 - JOSE CUENCO BORROMEO v. INTERMEDIATE APPELLATE COURT, ET AL.

  • G.R. No. 94494 March 15, 1996 - PEOPLE OF THE PHIL. v. DIONISIO C. LAPURA

  • G.R. No. 103695 March 15, 1996 - REPUBLIC OF THE PHIL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 105819 March 15, 1996 - MARILYN L. BERNARDO v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. Nos. 106229-30 March 15, 1996 - LEOVIGILDO ROSALES v. COURT OF APPEALS, ET AL.

  • G.R. No. 108001 March 15, 1996 - SAN MIGUEL CORPORATION, ET AL. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 111651 March 15, 1996 - OSMALIK S. BUSTAMANTE, ET AL. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 115106 March 15, 1996 - ROBERTO L. DEL ROSARIO v. COURT OF APPEALS, ET AL.

  • G.R. No. 114988 March 18, 1996 - CATALINO BONTIA, ET AL. v. NATIONAL LABOR RELATIONS COMMISSION

  • G.R. No. 117667 March 18, 1996 - INLAND TRAILWAYS v. COURT OF APPEALS

  • Adm. Matter No. 94-5-42-MTC March 20, 1996 - QUERY OF JUDGE DANILO M. TENERIFE

  • G.R. No. 102360 March 20, 1996 - ROSITA DOMINGO v. COURT OF APPEALS, ET AL.

  • G.R. No. 111656 March 20, 1996 - MANUEL MANAHAN, JR. v. COURT OF APPEALS, ET AL.

  • G.R. No. 116665 March 20, 1996 - MELQUIADES D. AZCUNA, JR. v. COURT OF APPEALS, ET AL.

  • Adm. Matter No. 95-1-07-RTC March 21, 1996 - JDF ANOMALY IN THE RTC OF LIGAO, ALBAY

  • Adm. Matter No. 95-10-06-SCC March 27, 1996 - IN RE: DEMASIRA M. BAUTE

  • Adm. Matter No. P-94-1071 March 28, 1996 - ELIZABETH ASUMBRADO v. FRANCISCO R. MACUNO

  • G.R. No. 104386 March 28, 1996 - PEOPLE OF THE PHIL. v. OSCAR L. LEVISTE, ET AL.

  • G.R. No. 121424 March 28, 1996 - IN RE: MAURO P. MAGTIBAY v. VICENTE VINARAO

  • G.R. No. 90215 March 29, 1996 - ERNESTO ZALDARRIAGA, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 94594 March 29, 1996 - PEOPLE OF THE PHIL. v. ROMEO REDULOSA, ET AL.

  • G.R. Nos. 96178-79 March 29, 1996 - PEOPLE OF THE PHIL. v. EDUARDO ESMAQUILAN

  • G.R. No. 97785 March 29, 1996 - PHILIPPINE COMMERCIAL INTERNATIONAL BANK v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 99259-60 March 29, 1996 - PEOPLE OF THE PHIL. v. EMILIO D. SANTOS

  • G.R. No. 103525 March 29, 1996 - MARCOPPER MINING CORPORATION v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 104296 March 29, 1996 - REPUBLIC OF THE PHIL. v. COURT OF APPEALS

  • G.R. Nos. 106083-84 March 29, 1996 - PEOPLE OF THE PHIL. v. QUINTIN T. GARRAEZ

  • G.R. No. 106600 March 29, 1996 - COSMOS BOTTLING CORPORATION v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 109312 March 29, 1996 - PLACIDO MIRANDA, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 109614-15 March 29, 1996 - PEOPLE OF THE PHIL. v. ADRONICO GREGORIO, ET AL.

  • G.R. No. 112346 March 29, 1996 - EVELYN YONAHA v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 112457-58 March 29, 1996 - PEOPLE OF THE PHIL. v. ROMEO CARTUANO, JR.

  • G.R. No. 112678 March 29, 1996 - EDUARDO M . ESPEJO v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. Nos. 112708-09 March 29, 1996 - REPUBLIC OF THE PHIL. v. SANDIGANBAYAN, ET AL.

  • G.R. No. 112718 March 29, 1996 - PEOPLE OF THE PHIL. v. VLADIMIR L. CANUZO

  • G.R. Nos. 113519-20 March 29, 1996 - PEOPLE OF THE PHIL. v. DANILO F. PANLILIO

  • G.R. Nos. 114263-64 March 29, 1996 - PEOPLE OF THE PHIL. v. JOHN JENN PORRAS, ET AL.

  • G.R. No. 115988 March 29, 1996 - PEOPLE OF THE PHIL. v. LEO V. LIAN

  • G.R. No. 116734 March 29, 1996 - PEOPLE OF THE PHIL. v. LARRY B. LAURENTE, ET AL.

  • G.R. No. 116792 March 29, 1996 - BANK OF THE PHILIPPINE ISLANDS, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 117055 March 29, 1996 - SAN MIGUEL CORPORATION v. NATIONAL LABOR RELATIONS COMMISSION

  • G.R. No. 117618 March 29, 1996 - VIRGINIA MALINAO v. LUISITO REYES, ET AL.

  • G.R. No. 118509 March 29, 1996 - LIMKETKAI SONS MILLING INC. v. COURT OF APPEALS, ET AL.

  • G.R. No. 118870 March 29, 1996 - NERISSA Z. PEREZ v. COURT OF APPEALS, ET AL.

  • G.R. No. 119193 March 29, 1996 - NEMENCIO GALVEZ v. COURT OF APPEALS, ET AL.

  • G.R. No. 120715 March 29, 1996 - FERNANDO R. SAZON v. COURT OF APPEALS, ET AL.

  • G.R. No. 121527 March 29, 1996 - MARCELO L. ONGSITCO, ET AL. v. COURT OF APPEALS, ET AL.

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    G.R. No. 116665   March 20, 1996 - MELQUIADES D. AZCUNA, JR. v. COURT OF APPEALS, ET AL.

     
    PHILIPPINE SUPREME COURT DECISIONS

    THIRD DIVISION

    [G.R. No. 116665. March 20, 1996.]

    MELQUIADES D. AZCUNA, JR., Petitioner, v. COURT OF APPEALS, ET AL., Respondents.

    Famador Campos & Boquia for Petitioner.

    Adrain H . Villasis for Private Respondent.


    SYLLABUS


    CIVIL LAW; CONTRACTS; AGREEMENT TO PAY LIQUIDATED DAMAGES IN CASE OF BREACH THEREOF; VALID AND BINDING IN CASE AT BAR. — The freedom of the contracting parties to make stipulations in their contract provided they are not contrary to law, morals, good customs, public order or public policy is so settled, and the Court finds nothing immoral or illegal with the indemnity/penalty clause of the lease contract (paragraph 10) which does not appear to have been forced upon or fraudulently foisted on petitioner. Petitioner cannot now evade further liability for liquidated damages, for "after entering into such an agreement, petitioner cannot thereafter turn his back on his word with a plea that on him was inflicted a penalty shocking to the conscience and impressed with iniquity as to call for the relief sought on the part of a judicial tribunal.


    D E C I S I O N


    FRANCISCO, J.:


    Under a one (1) year lease contract commencing on July 1, 1992 and ending on June 30, 1993 but renewable upon agreement, herein petitioner Azcuna, Jr., as lessee, occupied three (3) units (C, E and F) of the building owned by private respondent Barcelona’s family. Came expiration date of the lease without an agreed renewal thereof and coupled by petitioner’s failure to surrender the leased units despite private respondent’s demands, private respondent filed before the Municipal Trial Court an ejectment case against petitioner. Judgment of that inferior court, affirmed in its entirety by the Regional Trial Court and herein public respondent Court of Appeals on subsequent appeals taken by petitioner, favored private respondent, the decretal portion of which reads:jgc:chanrobles.com.ph

    "PREMISES CONSIDERED, judgment is hereby rendered in favor of the plaintiff, Ernesto E. Barcelona, ordering the defendant Melquiades D. Azcuna, Jr., and all persons claiming rights under him to vacate the premises known as Units C, E and F, in the building owned by plaintiff’s family located along Congressional Avenue, Quezon City. Defendant is likewise ordered to pay the following:jgc:chanrobles.com.ph

    "1. The sum of P25,000.00 monthly as rental for continued use by defendant of the three (3) units of leased premises in question starting July 1, 1993 less the amount that have been deposited or given by the defendant to the plaintiff up to such time the defendant and all persons claiming rights under him finally vacate the aforesaid premises;

    "2. The further sum of P3,000.00 per day, by way of damages for his failure to turn over peacefully the three (3) commercial spaces to the plaintiff from July 1, 1993 until such time the defendant and all persons claiming rights under him vacate the premises;

    "3. The further sum of P5,000.00 by way of attorney’s fees; and,

    "4. The cost of this suit.

    "The counter-claim of the defendant is hereby Dismissed, for lack of merit.

    "SO ORDERED."cralaw virtua1aw library

    Petitioner now comes to the Court via the instant petition not to contest his ouster from the leased premises nor the amount of monthly rental he was adjudged to pay until he vacates the same, but only to take particular exception to respondent CA’s decision insofar as it affirmed the municipal trial court’s award of P3,000.00 per day as damages (sub- paragraph 2 of the dispositive portion just quoted). It is petitioner’s claim that such award, in addition to the fair rental value or reasonable compensation for the use and occupation of the premises (sub-paragraph 1) is improper in the light of the doctrine enunciated in the cases of "Felesilda v. Villanueva" 1 , "Shoemart, Inc. v. CA" 2 and "Hualam Construction and Development Corp. v. CA" 3 cited by petitioner, that "the only damages that can be recovered in an ejectment suit are the fair rental value or the reasonable compensation for the use and occupation of the real property. Other damages must be claimed in an ordinary action" .

    Petitioner’s reliance on such doctrine is misplaced, inasmuch as the "Felesilda", "Shoemart’ and "Hualam" cases dealt with additional damages and charges other than liquidated damages, defined as." . . those agreed upon by the parties to a contract, to be paid in case of breach thereof." 4 Here, the municipal trial court, in making the "P3,000.00 per day" award, was merely enforcing what was stipulated upon in black and white by private respondent-lessor and petitioner-lessee appearing in paragraph 10 of the lease contract which reads:jgc:chanrobles.com.ph

    "That after the termination of the lease, the LESSEE shall peaceably deliver to the LESSOR the leased premises vacant and unencumbered and in good tenantable conditions minus the ordinary wear and tear. In case the LESSEE’s failure or inability to do so, LESSOR has the right to charge the LESSEE P1,000.00 per day as damages without Prejudice to other remedies which LESSOR is entitled in the premise." (Emphasis supplied)

    This is clearly an agreement for liquidated damages — entitling private respondent to claim a stipulated amount by way of damages (correctly totalling P3,000.00 per day as there were three (3) units being leased by petitioner) over and above other damages still legally due him, i.e., the fair rental value for the use and occupation of the property as provided for in Section 8, Rule 70 of the Rules of Court. The freedom of the contracting parties to make stipulations in their contract provided they are not contrary to law, morals, good customs, public order or public policy is so settled, and the Court finds nothing immoral or illegal with the indemnity/penalty clause of the lease contract (paragraph 10) which does not appear to have been forced upon or fraudulently foisted on petitioner. Petitioner cannot now evade further liability for liquidated damages, for "after entering into such an agreement, petitioner cannot thereafter turn his back on his word with a plea that on him was inflicted a penalty shocking to the conscience and impressed with iniquity as to call for the relief sought on the part of a judicial tribunal." 5

    The controlling case here is, as correctly invoked by private respondent, "Gozon v. Vda. de Barrameda" 6 which involved similar facts and the same issue raised by herein petitioner. There, the then Court of First Instance of Rizal affirmed the judgment of the then justice of the peace court of Caloocan in a detainer case ordering defendant- appellant Barrameda to pay complainant Gozon the sum of P1,622.43 as rentals due up to July 3, 1958 plus P5,000.00 as liquidated damages, and costs. Appellant Barrameda likewise assailed the propriety of the P5,000.00 award in addition to the rentals. The Court upheld the then CFI’s affirmatory decision by disposing of appellant Barrameda’s protestation in this wise:jgc:chanrobles.com.ph

    "This Court has often stated that inferior courts have exclusive jurisdiction over cases of forcible entry and detainer regardless of the value of damages demanded. It has also ruled that the damages that may be recovered in actions for ejectment are those equivalent to a reasonable compensation for the use and occupation of the premises by defendant. Nonetheless, this latter legal proposition is not pertinent to the issue raised in the instant case because here. the damage sought to be recovered had previously been agreed to by lessee (in the contract of lease) and imposed by lessor by way of damages. Besides, nobody can affirm that the liquidated amount of damages stipulated in the lease contract was not due to occupation or loss of possession of the premises and non-compliance with the contract." (Emphasis supplied)

    WHEREFORE, the instant petition for review by way of certiorari is hereby DENIED.

    SO ORDERED.

    Narvasa, C.J., Davide, Jr., Melo and Panganiban, JJ., concur.

    Endnotes:



    1. 139 SCRA 431.

    2. 190 SCRA 189.

    3. 214 SCRA 612.

    4. Article 2226, New Civil Code.

    5. Limjoco v. CA and Robert Tan, 37 SCRA 663, 671.

    6. 11 SCRA 376.

    G.R. No. 116665   March 20, 1996 - MELQUIADES D. AZCUNA, JR. v. COURT OF APPEALS, ET AL.




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