ChanRobles™ Virtual Law Library | chanrobles.com™  
Main Index Law Library Philippine Laws, Statutes & Codes Latest Legal Updates Philippine Legal Resources Significant Philippine Legal Resources Worldwide Legal Resources Philippine Supreme Court Decisions United States Jurisprudence
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)
 

 
Chan Robles Virtual Law Library
 









 

 
UNITED STATES SUPREME COURT JURISPRUDENCE
 

 
PHILIPPINE SUPREME COURT JURISPRUDENCE
 

   
June-2001 Jurisprudence                 

  • A.M. No. P-00-1446 June 6, 2001 - PATERNO R. PLANTILLA v. RODRIGO G. BALIWAG

  • A.M. No. P-91-642 June 6, 2001 - SOLEDAD LAURO v. EFREN LAURO

  • G.R. No. 92328 June 6, 2001 - DAP MINING ASSO. v. COURT OF APPEALS, ET AL.

  • G.R. No. 100579 June 6, 2001 - LEANDRO P. GARCIA v. COURT OF APPEALS, ET AL.

  • G.R. No. 113918 June 6, 2001 - MARCELINA G. TRINIDAD, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 121272 June 6, 2001 - PEOPLE OF THE PHIL. v. REYDERICK LAGO

  • G.R. No. 122353 June 6, 2001 - EVANGELINE DANAO v. COURT OF APPEALS, ET AL.

  • G.R. No. 129534 & 141169 June 6, 2001 - PEOPLE OF THE PHIL. v. NESTOR MACANDOG, ET AL.

  • G.R. No. 138949 June 6, 2001 - UNION BANK OF THE PHIL. v. SEC

  • G.R. No. 138971 June 6, 2001 - PEZA v. RUMOLDO R FERNANDEZ

  • G.R. No. 139034 June 6, 2001 - DEVELOPMENT BANK OF THE PHIL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 139323 June 6, 2001 - PEOPLE OF THE PHIL. v. CARLO ELLASOS, ET AL.

  • G.R. No. 140128 June 6, 2001 - ARNOLD P. MOLLANEDA v. LEONIDA C. UMACOB

  • G.R. No. 140277 June 6, 2001 - PEOPLE OF THE PHIL v. GUILLERMO BALDAGO, ET AL.

  • G.R. No. 141529 June 6, 2001 - FRANCISCO YAP, JR. v. COURT OF APPEALS, ET AL.

  • G.R. No. 142888 June 6, 2001 - EVELIO P. BARATA v. BENJAMIN ABALOS JR.

  • G.R. No. 143561 June 6, 2001 - JONATHAN D. CARIAGA v. COURT OF APPEALS, ET AL.

  • G.R. No. 110335 June 18, 2001 - IGNACIO GONZALES, ET AL. v. COURT OF APPEALS, ET AL.

  • A.M. No. RTJ-01-1615 June 19, 2001 - WINNIE BAJET v. PEDRO M. AREOLA

  • A.M. No. RTJ-01-1633 June 19, 2001 - ANTONIO and ELSA FORTUNA v. MA. NIMFA PENACO-SITACA, ET AL.

  • G.R. No. 99433 June 19, 2001 - PROJECT BUILDERS, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 114944 June 19, 2001 - MANUEL C. ROXAS, ET AL. v. CONRADO M. VASQUEZ, ET AL.

  • G.R. No. 120701 June 19, 2001 - PEOPLE OF THE PHIL. v. JONATHAN CRISANTO

  • G.R. No. 123916 June 19, 2001 - PEOPLE OF THE PHIL. v. LYNTON ASUNCION

  • G.R. No. 130605 June 19, 2001 - PEOPLE OF THE PHIL. v. FELIX UGANAP, ET AL.

  • G.R. No. 132160 June 19, 2001 - PEOPLE OF THE PHIL. v. MARIO DE LEON, ET AL.

  • G.R. No. 132223 June 19, 2001 - BONIFACIA P. VANCIL v. HELEN G. BELMES

  • G.R. No. 134895 June 19, 2001 - STA. LUCIA REALTY and DEV’T., ET AL. v. LETICIA CABRIGAS, ET AL.

  • G.R. No. 137164 June 19, 2001 - PEOPLE OF THE PHIL. v. ALBERT NUBLA

  • G.R. No. 137752 June 19, 2001 - PEOPLE OF THE PHIL. v. ROBERT AYUNGON

  • G.R. Nos. 138298 & 138982 June 19, 2001 - RAOUL B. DEL MAR v. PAGCOR, ET AL.

  • G.R. No. 139313 June 19, 2001 - PEOPLE OF THE PHIL. v. FLORANTE LEAL

  • G.R. No. 140690 June 19, 2001 - PEOPLE OF THE PHIL. v. NAZAR U. CHAVEZ

  • G.R. No. 141441 June 19, 2001 - JOSE SUAN v. NLRC, ET AL.

  • A.M. No. 00-10-230-MTCC June 20, 2001 - RE: JULIAN C. OCAMPO III AND RENATO C. SAN JUAN

  • A.M. No. 00-11-521-RTC June 20, 2001 - RE: AWOL OF MS. LILIAN B. BANTOG

  • A.M. No. P-99-1346 June 20, 2001 - RESTITUTO L. CASTRO v. CARLOS BAGUE

  • A.M. No. RTJ-00-1606 June 20, 2001 - PATRIA MAQUIRAN v. LILIA G. LOPEZ

  • G.R. No. 84831 June 20, 2001 - PACENCIO ABEJARON v. FELIX NABASA, ET AL.

  • G.R. No. 109666 June 20, 2001 - ROGERIO R. OLAGUER, ET AL. v. EUFEMIO DOMINGO, ET AL.

  • G.R. No. 113564 June 20, 2001 - INOCENCIA YU DINO v. COURT OF APPEALS, ET AL.

  • G.R. No. 115851 June 20, 2001 - LA JOLLA v. COURT OF APPEALS, ET AL.

  • G.R. No. 127129 June 20, 2001 - PEOPLE OF THE PHIL. v. ROLANDO CABAYA, ET AL.

  • G.R. No. 128617 June 20, 2001 - PEOPLE OF THE PHIL. v. CESAR BACUS

  • G.R. Nos. 129292-93 June 20, 2001 - PEOPLE OF THE PHIL. v. ARLENGEN DEGALA

  • G.R. No. 130524 June 20, 2001 - PEOPLE OF THE PHIL. v. RUDY MADIA

  • G.R. No. 131036 June 20, 2001 - PEOPLE OF THE PHIL. v. DONATO DEL ROSARIO

  • G.R. Nos. 135976-80 June 20, 2001 - PEOPLE OF THE PHIL. v. CLAUDIO GALENO

  • G.R. No. 138629 June 20, 2001 - PEOPLE OF THE PHIL. v. RAMON CAMACHO

  • G.R. No. 139430 June 20, 2001 - EDI STAFF BUILDERS INTERNATIONAL v. FERMINA D. MAGSINO

  • G.R. Nos. 139445-46 June 20, 2001 - PEOPLE OF THE PHIL. v. RODRIGO GONZALES

  • G.R. No. 142304 June 20, 2001 - CITY OF MANILA v. OSCAR SERRANO, ET AL.

  • A.M. No. MTJ-01-1342 June 21, 2001 - BISHOP CRISOSTOMO A. YALUNG, ET AL. v. ENRIQUE M. PASCUA

  • G.R. No. 108558 June 21, 2001 - ANDREA TABUSO, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 109197 June 21, 2001 - JAYME C. UY, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 111580 & 114802 June 21, 2001 - SHANGRI-LA INTERNATIONAL HOTEL MNGT. LTD. ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 116200-02 June 21, 2001 - PEOPLE OF THE PHIL. v. ELEUTERIO TAN, ET AL.

  • G.R. No. 131131 June 21, 2001 - PEOPLE OF THE PHIL. v. ABELARDO SALONGA

  • G.R. No. 134138 June 21, 2001 - PEOPLE OF THE PHIL. v. EDMUNDO BRIONES AYTALIN

  • G.R. Nos. 135552-53 June 21, 2001 - PEOPLE OF THE PHIL. v. ABEL ABACIA, ET AL.

  • G.R. No. 139542 June 21, 2001 - PEOPLE OF THE PHIL. v. INOCENCIO GONZALEZ

  • G.R. No. 140206 June 21, 2001 - PEOPLE OF THE PHIL. v. RODOLFO MATYAONG

  • G.R. No. 142023 June 21, 2001 - SANNY B. GINETE v. SUNRISE MANNING AGENCY, ET AL.

  • G.R. No. 103068 June 22, 2001 - MEAT PACKING CORP. OF THE PHIL. v. SANDIGANBAYAN, ET AL.

  • A.M. No. MTJ-96-1110 June 25, 2001 - MANUEL N. MAMBA, ET AL. v. DOMINADOR L. GARCIA

  • G.R. No. 116710 June 25, 2001 - DANILO D. MENDOZA v. COURT OF APPEALS, ET AL.

  • G.R. No. 117857 June 25, 2001 - LUIS S. WONG v. COURT OF APPEALS, ET AL.

  • G.R. No. 128126 June 25, 2001 - PEOPLE OF THE PHIL. v. RAFAEL M. CATAPANG

  • G.R. No. 132051 June 25, 2001 - TALA REALTY SERVICES CORP. v. BANCO FILIPINO SAVINGS AND MORTGAGE BANK

  • G.R. No. 134068 June 25, 2001 - UNION BANK OF THE PHIL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 136221 June 25, 2001 - EQUATORIAL REALTY DEVELOPMENT v. MAYFAIR THEATER

  • G.R. No. 136382 June 25, 2001 - PEOPLE OF THE PHIL. v. FIDEL ALBORIDA

  • G.R. Nos. 138439-41 June 25, 2001 - PEOPLE OF THE PHIL. v. MARIO PANGANIBAN

  • G.R. No. 141141 June 25, 2001 - PAGCOR v. CARLOS P. RILLORAZA

  • G.R. No. 141801 June 25, 2001 - SOLOMON ALVAREZ v. COURT OF APPEALS

  • G.R. No. 143428 June 25, 2001 - SANDOVAL SHIPYARDS, ET AL. v. PRISCO PEPITO, ET AL.

  • A.M. No. 99-11-423-RTC June 26, 2001 - RE: Report on the Judicial Audit Conducted in the Regional Trial Court

  • A.M. No. RTJ-99-1461 June 26, 2001 - RICARDO DELA CRUZ v. HERMINIA M. PASCUA

  • A.M. No. RTJ-99-1486 June 26, 2001 - OFFICE OF THE COURT ADMINISTRATOR v. ISMAEL SANCHEZ

  • G.R. Nos. 110547-50 & 114526-667 June 26, 2001 - JOSE SAYSON v. SANDIGANBAYAN ET AL.

  • G.R. No. 120859 June 26, 2001 - METROPOLITAN BANK AND TRUST COMPANY v. FRANCISCO Y. WONG

  • G.R. No. 123542 June 26, 2001 - PEOPLE OF THE PHIL. v. ROGELIO BULOS

  • G.R. Nos. 132848-49 June 26, 2001 - PHILROCK v. CONSTRUCTION INDUSTRY ARBITRATION COMMISSION, ET AL.

  • G.R. No. 133990 June 26, 2001 - PEOPLE OF THE PHIL. v. HECTOR MARIANO

  • G.R. No. 134764 June 26, 2001 - PEOPLE OF THE PHIL v. BENJAMIN FABIA

  • G.R. Nos. 139626-27 June 26, 2001 - PEOPLE OF THE PHIL. v. DOMINGO DELA CRUZ

  • G.R. No. 143204 June 26, 2001 - HYATT TAXI SERVICES INC. v. RUSTOM M. CATINOY

  • G.R. Nos. 147589 & 147613 June 26, 2001 - ANG BAGONG BAYANI-OFW LABOR PARTY, ET AL. v. COMELEC, ET AL.

  • G.R. No. 130661 June 27, 2001 - PEOPLE OF THE PHIL. v. DANILO I. TORRES, ET AL.

  • G.R. No. 135882 June 27, 2001 - LOURDES T. MARQUEZ v. ANIANO A. DESIERTO, ET AL.

  • G.R. No. 140001 June 27, 2001 - PEOPLE OF THE PHIL. v. EDUARDO BUENAFLOR

  • A.C. No. 3910 June 28, 2001 - JOSE S. DUCAT v. ARSENIO C. VILLALON, ET AL.

  • A.C. No. 4073 June 28, 2001 - ARACELI SIPIN-NABOR v. BENJAMIN BATERINA

  • A.M. No. P-01-1480 June 28, 2001.

    AMADO S. CAGUIOA v. CRISANTO FLORA

  • A.M. No. P-99-1343 June 28, 2001 - ORLANDO T. MENDOZA v. ROSBERT M. TUQUERO, ET AL.

  • A.M. No. RTJ-00-1576 June 28, 2001 - SIMPLICIO ALIB v. EMMA C. LABAYEN

  • G.R. No. 105364 June 28, 2001 - PHIL. VETERANS BANK EMPLOYEES UNION-N.U.B.E., ET AL. v. BENJAMIN VEGA, ET AL.

  • G.R. No. 110813 June 28, 2001 - PEOPLE OF THE PHIL. v. ERNESTO PARDUA, ET AL.

  • G.R. No. 110914 June 28, 2001 - ALFREDO CANUTO; JR., ET AL. v. NLRC, ET AL.

  • G.R. Nos. 112453-56 June 28, 2001 - PEOPLE OF THE PHIL. v. GERARDO LATUPAN

  • G.R. Nos. 112563 & 110647 June 28, 2001 - HEIRS OF KISHINCHAND HIRANAND DIALDAS v. COURT OF APPEALS, ET AL.

  • G.R. No. 120630 June 28, 2001 - PEOPLE OF THE PHIL. v. MARCELO PALERMO

  • G.R. No. 131954 June 28, 2001 - ASELA B. MONTECILLO, ET AL v. CIVIL SERVICE COMMISSION

  • G.R. Nos. 132026-27 June 28, 2001 - PEOPLE OF THE PHIL. v. MARIO ABENDAN, ET AL.

  • G.R. No. 132362 June 28, 2001 - PIO BARRETTO REALTY DEV’T. CORP. v. COURT OF APPEALS, ET AL.

  • G.R. No. 132837 June 28, 2001 - JO CINEMA CORP., ET AL. v. LOLITA C. ABELLANA, ET AL.

  • G.R. No. 133605 June 28, 2001 - PEOPLE OF THE PHIL. v. BENJAMIN BARRIAS

  • G.R. No. 135846 June 28, 2001 - PEOPLE OF THE PHIL v. NOEL ORTEGA

  • G.R. No. 138270 June 28, 2001 - SEA POWER SHIPPING ENTERPRISES INC. v. COURT OF APPEALS, ET AL.

  • G.R. No. 142314 June 28, 2001 - MC ENGINEERING, ET AL. v. NLRC, ET AL.

  • G.R. No. 143723 June 28, 2001 - LITONJUA GROUP OF CO.’s., ET AL. v. TERESITA VIGAN

  • G.R. No. 144113 June 28, 2001 - EDWEL MAANDAL v. PEOPLE OF THE PHIL

  • G.R. No. 144942 June 28, 2001 - COMMISSIONER OF INTERNAL REVENUE v. LA SUERTE CIGAR.

  • G.R. No. 146062 June 28, 2001 - SANTIAGO ESLABAN v. CLARITA VDA. DE ONORIO

  • A.M. No. 00 4-166-RTC June 29, 2001 - Re: Report on the Judicial Audit

  • A.M. No. 01-4-03-SC June 29, 2001 - HERNANDO PEREZ, ET AL. v. JOSEPH E. ESTRADA, ET AL.

  • A.M. No. P-00-1380 June 29, 2001 - GLORIA O. DINO v. FRANCISCO DUMUKMAT

  • G.R. No. 110480 June 29, 2001 - BANGKO SILANGAN DEVELOPMENT BANK v. COURT OF APPEALS, ET AL.

  • G.R. No. 111860 June 29, 2001 - PEOPLE OF THE PHIL. v. JESUS CLEDORO

  • G.R. No. 116092 June 29, 2001 - SUSANA VDA. DE COCHINGYAN, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 118251 June 29, 2001 - METROPOLITAN BANK AND TRUST COMPANY v. REGINO T. VERIDIANO II, ET AL.

  • G.R. No. 121597 June 29, 2001 - PHIL. NATIONAL BANK v. COURT OF APPEALS, ET AL.

  • G.R. No. 125944 June 29, 2001 - DANILO SOLANGON, ET AL. v. JOSE AVELINO SALAZAR

  • G.R. No. 126396 June 29, 2001 - PEOPLE OF THE PHIL v. FELIXBERTO LAO-AS

  • G.R. No. 128705 June 29, 2001 - CONRADO AGUILAR v. COMMERCIAL SAVINGS BANK, ET AL.

  • G.R. No. 129782 June 29, 2001 - PEOPLE OF THE PHIL. v. BALWINDER SINGH, ET AL.

  • G.R. No. 131968 June 29, 2001 - ERNESTO PENGSON, ET AL v. MIGUEL OCAMPO, ET AL.

  • G.R. No. 132059 June 29, 2001 - PEOPLE OF THE PHIL. v. WENEFREDO DIMSON ASOY

  • G.R. No. 138598 June 29, 2001 - ASSET PRIVATIZATION TRUST v. SANDIGANBAYAN, ET AL.

  • G.R. No. 144542 June 29, 2001 - FRANCISCO DELA PEÑA, ET AL v. SANDIGANBAYAN, ET AL.

  •  





     
     

    G.R. No. 132051   June 25, 2001 - TALA REALTY SERVICES CORP. v. BANCO FILIPINO SAVINGS AND MORTGAGE BANK

     
    PHILIPPINE SUPREME COURT DECISIONS

    THIRD DIVISION

    [G.R. No. 132051. June 25, 2001.]

    TALA REALTY SERVICES CORP., Petitioner, v. BANCO FILIPINO SAVINGS AND MORTGAGE BANK, Respondent.

    D E C I S I O N


    SANDOVAL-GUTIERREZ, J.:


    Stare decisis et non quieta movere. This principle of adherence to precedents has not lost its luster and continues to guide the bench in keeping with the need to maintain stability in the law.

    The principle finds application to the case now before us.

    This is a petition for review on certiorari under Rule 45 of the 1997 Rules of Civil Procedure, as amended, assailing the Resolution dated December 23, 1997 of the Court of Appeals in C.A. G.R. SP No. 44257.

    Under Republic Act No. 337 (General Banking Act), commercial banks are allowed to invest in real property subject to the limitation that:jgc:chanrobles.com.ph

    "SECTION 25. Any commercial bank may purchase, hold and convey real estate for the following purposes:jgc:chanrobles.com.ph

    "(a) such as shall be necessary for its immediate accommodation in the transaction of its business: Provided, however, that the total investment in such real estate and improvements thereof, including bank equipment, shall not exceed fifty percent (50%) of net worth . . ." (Emphasis ours)

    Investments in real estate made by savings and mortgage banks are likewise subject to the same limitation imposed by the aforequoted provision. 1

    Bound by such limitation, the management of Banco Filipino Savings and Mortgage Bank (Banco Filipino for brevity) devised means to pursue its endeavor to expand its banking operations. To this end, Tala Realty Services Corporation (Tala for brevity) was organized by Banco Filipino’s four (4) major stockholders namely, Antonio Tiu, Tomas B. Aguirre, Nancy Lim Ty and Pedro B. Aguirre. Tala and Banco Filipino agreed on this scheme — Tala would acquire the existing branch sites and new branch sites which it would lease out to Banco Filipino.

    On August 25, 1981, pursuant to their agreement, Banco Filipino sold its eleven (11) branch sites all over the country to Tala. In turn Tala leased those sites to Banco Filipino under contracts of lease executed by both parties on the same day.

    Years after, dissension between Tala and Banco Filipino arose in connection with their lease contracts resulting in a chain of lawsuits for illegal detainer. Some of these cases are still pending in courts. At present, three of the illegal detainer cases have been passed upon by the Supreme Court.

    The case at bar, involving Banco Filipino’s Iloilo City branch site, is one of those cases for illegal detainer filed by Tala against Banco Filipino based on these grounds: (a) expiration of the period of lease and (b) non-payment of rentals.

    The facts of the present controversy may be summed up as follows:chanrob1es virtual 1aw library

    In its complaint in Civil Case No. 51(95) filed with the Municipal Trial Court (MTC) of Iloilo City on March 29, 1995, Tala alleged that on the basis of a contract of lease executed on August 25, 1981 which provides in part:jgc:chanrobles.com.ph

    "1. That the term of this LEASE shall be for a period of eleven (11) years, renewable for another period of nine (9) years at the option of the LESSEE under terms and conditions mutually agreeable to both parties." 2 ,

    its contract with Banco Filipino expired on August 31, 1992. However, Banco Filipino has continued to occupy the premises even after the expiration of the lease.

    On June 2, 1993, Tala imposed upon Banco Filipino the following terms and conditions: that the bank should pay P70,050.00 as monthly rental retroactive as of September 1, 1992, with rental escalation of 10% per year; and advance deposit equivalent to rents for four months, plus a goodwill of P500,000.00.

    Banco Filipino did not comply and in April 1994, it stopped paying rents.

    In its letter dated April 14, 1994, Tala notified Banco Filipino that the lease contract would no longer be renewed; that it should pay its back rentals, including goodwill, deposit and adjusted rentals in the amount of P2, 059, 540.00 and vacate the premises on or before April 30, 1994. 3 In its second letter dated May 2, 1994, Tala demanded upon Banco Filipino to pay the rents and vacate the premises. 4

    In answer to Tala’s complaint, Banco Filipino denied having executed the lease contract providing for a term of eleven (11) years; claiming that its contract with Tala is for twenty (20) years, citing the Contract of Lease executed on August 25, 1981 providing:jgc:chanrobles.com.ph

    "That the term of this LEASE shall be for a period of twenty (20) years, renewable for another period of twenty (20) years at the option of the LESSEE under terms and conditions mutually agreeable to both parties." 5

    On July 1, 1996, the MTC rendered judgment holding that the eleven (11)-year lease contract superseded the twenty (20)-year lease contract. Thus, the court ordered the ejectment of Banco Filipino from the premises on these grounds: expiration of the eleven (11)-year lease contract and non-payment of the adjusted rental. Banco Filipino was likewise ordered to pay back rentals in the amount of P79, 050.00 corresponding to the period from May 1994 up to the time that it shall have surrendered to Tala possession of the premises. 6

    On appeal, the Regional Trial Court, Branch 26, Iloilo City affirmed the MTC decision. 7

    Banco Filipino elevated the RTC decision to the Court of Appeals which affirmed the challenged decision. 8

    Banco Filipino sought for a reconsideration of the Court of Appeals Decision, invoking in its Supplemental Motion for Reconsideration the Decisions of the same court in two of the other illegal detainer cases initiated by Tala against Banco Filipino, docketed as CA-G.R. SP Nos. 39104 and 40524. In these cases, the Court of Appeals upheld the validity of the lease contract providing for a period of twenty (20) years. Finding Banco Filipino’s motions for reconsideration meritorious, the Court of Appeals issued the herein assailed Resolution, thus:jgc:chanrobles.com.ph

    "This Court agrees with petitioner that its Decision of August 30, 1996 in CA-G.R. SP No. 39104, having been declared final and executory by no less than the Supreme Court in G.R. No. 127586, now constitutes the law of the case between the parties in the present case. Accordingly, this Court is not at liberty to disregard or abandon the same at will without wreaking havoc on said legal principle.

    "WHEREFORE, petitioner’s motion for reconsideration and supplemental motion for reconsideration are hereby GRANTED. Accordingly, the Court’s Decision of August 25, 1997 is hereby SET ASIDE and, in lieu thereof, a new one is rendered REVERSING and SETTING ASIDE the appealed decision and DISMISSING the complaint for ejectment filed against herein petitioner in the Municipal Trial Court of Iloilo City." 9

    Tala now comes to this Court on the lone ground that:jgc:chanrobles.com.ph

    "The Honorable Court of Appeals erred in considering that principle of ‘the law of the case’ finds application in the instant case." 10

    Petitioner Tala contends that its complaint for illegal detainer should not have been dismissed by the Court of Appeals on the basis of its decision in CA-G.R. SP No. 39104. Petitioner claims that this decision is not a precedent.

    The first in the series of illegal detainer cases filed by Tala against the bank which reached the Supreme Court is CA-G.R. SP No. 39104. This involves the site in Malabon. The Court of Appeals held that Banco Filipino cannot be ejected from the subject premises considering that the twenty (20)-year lease contract has not expired. Tala elevated this Court of Appeals decision to the Supreme Court in G.R. No. 127586. In a Resolution dated March 12, 1997, the Supreme Court dismissed Tala’s petition as the "appeal" was not timely perfected, thus:jgc:chanrobles.com.ph

    "Considering the manifestation dated January 31, 1997 filed by petitioner that it is no longer pursuing or holding in abeyance recourse to the Supreme Court for reasons stated therein, the Court Resolved to DECLARE THIS CASE TERMINATED and DIRECT the Clerk of Court to INFORM the parties that the judgment sought to be reviewed has become final and executory, no appeal therefrom having been timely perfected." 11

    We agree with petitioner Tala that the decision of the Court of Appeals in CA-G.R. SP No. 39104 holding that the twenty (20)-year contract of lease governs the contractual relationship between the parties is not a precedent considering that the Supreme Court in G.R. No. 127586 did not decide the case on the merits. The petition was dismissed on mere technicality. It is significant to note, however, that the Supreme Court in G.R. No. 129887, 12 through Mr. Justice Sabino R. de Leon, resolved the identical issue raised in the present petition, i.e., whether the period of the lease between the parties is twenty (20) or eleven (11) years, thus:jgc:chanrobles.com.ph

    "Second. Petitioner Tala Realty insists that its eleven (11)-year lease contract controls. We agree with the MTC and the RTC, however, that the eleven (11)-year contract is a forgery because (1) Teodoro O. Arcenas, then Executive Vice-President of private respondent Banco Filipino, denied having signed the contract; (2) the records of the notary public who notarized the said contract, Atty. Generoso S. Fulgencio, Jr., do not include the said document; and (3) the said contract was never submitted to the Central Bank as required by the latter’s rules and regulations (Rollo, pp. 383-384.).

    "Clearly, the foregoing circumstances are badges of fraud and simulation that rightly make any court suspicious and wary of imputing any legitimacy and validity to the said lease contract.

    "Executive Vice-President Arcenas of private respondent Banco Filipino testified that he was responsible for the daily operations of said bank. He denied having signed the eleven (11)-year contract and reasoned that it was not in the interest of Banco Filipino to do so (Rollo, p. 384). The fact was corroborated by Josefina C. Salvador, typist of Banco Filipino’s Legal Department, who allegedly witnessed the said contract and whose initials allegedly appear in all the pages thereof. She disowned the said marginal initials (id., p. 385).

    "The Executive Judge of the RTC supervises a notary public by requiring submission to the Office of the Clerk of Court of his monthly notarial report with copies of acknowledged documents thereto attached. Under this procedure and requirement of the Notarial Law, failure to submit such notarial report and copies of acknowledged documents has dire consequences including the possible revocation of the notary’s notarial commission.

    "The fact that the notary public who notarized petitioner Tala Realty’s alleged eleven (11)-year lease contract did not retain a copy thereof for submission to the Office of the Clerk of Court of the proper RTC militates against the use of said document as a basis to uphold petitioner’s claim. The said alleged eleven (11)-year lease contract was not submitted to the Central Bank whose strict documentation rules must be complied with by banks to ensure their continued good standing. On the contrary, what was submitted to the Central Bank was the twenty (20)-year lease contract.

    "Granting arguendo that private respondent Banco Filipino deliberately omitted to submit the eleven (11)-year contract to the Central Bank, we do not consider that fact as violative of the res inter alios acta aliis non nocet (Section 28, Rule 130, Revised Rules of Court provides, viz.: ‘Sec. 28. Admission by third party — The rights of a party cannot be prejudiced by an act, declaration or omission of another, except as hereinafter provided.’; Compania General de Tabacos v. Ganson, 13 Phil. 472, 477 [1909]) rule in evidence. Rather, it is an indication of said contract’s inexistence.

    "It is not the eleven (11)-year lease contract but the twenty (20)-year lease contract which is the real and genuine contract between petitioner Tala Realty and private respondent Banco Filipino. Considering that the twenty (20)-year lease contract is still subsisting and will expire in 2001 yet, Banco Filipino is entitled to the possession of the subject premises for as long as it pays the agreed rental and does not violate the other terms and conditions thereof (Art. 1673, New Civil Code)." (Emphasis supplied)

    The validity of the twenty (20) year lease contract was further reinforced on June 20, 2000 when the First Division of this Court, this time, speaking through Madame Justice Consuelo Ynares-Santiago, rendered a Decision in G.R. No. 137980, likewise upholding the twenty (20)-year lease contract, thus:jgc:chanrobles.com.ph

    "In light of the foregoing recent Decision of this Court (G.R. No. 129887), we have no option but to uphold the twenty-year lease contract over the eleven-year contract presented by petitioner. It is the better practice that when a court has laid down a principle of law as applicable to a certain state of facts, it will adhere to that principle and apply it to all future cases where the facts are substantially the same.’Stare decisis et non quieta movere.’

    "That the principle of stare decisis applies in the instant case, even though the subject property is different, may be gleaned from the pronouncement in Negros Navigation Co., Inc. v. Court of Appeals [G.R. No. 110398, 281 SCRA 534, 542-543 (1997)], to wit —

    ‘Petitioner criticizes the lower court’s reliance on the Mecenas case, arguing that although this case arose out of the same incident as that involved in Mecenas, the parties are different and trial was conducted separately. Petitioner contends that the decision in this case should be based on the allegations and defenses pleaded and evidence adduced in it, or, in short, on the record of this case.

    ‘The contention is without merit. What petitioner contends may be true with respect to the merits of the individual claims against petitioner but not as to the cause of the sinking of its ship on April 22, 1980 and its liability for such accident, of which there is only one truth. Otherwise, one would be subscribing to the sophistry: truth on one side of the Pyrenees, falsehood on the other!

    ‘Adherence to the Mecenas case is dictated by this Court’s policy of maintaining stability in jurisprudence in accordance with the legal maxim ‘stare decisis et non quieta movere’ (Follow past precedents and do not disturb what has been settled.) Where, as in this case, the same questions relating to the same event have been put forward by parties similarly situated as in a previous case litigated and decided by a competent court, the rule of stare decisis is a bar to any attempt to relitigate the same issue (J.M. Tuason & Corp. v. Mariano, 85 SCRA 644 [1978]). In Woulfe v. Associated Realties Corporation (130 N.J. Eq. 519, 23 A. 2d 399, 401 [1942]), the Supreme Court of New Jersey held that where substantially similar cases to the pending case were presented and applicable principles declared in prior decisions. the court was bound by the principle of stare decisis. Similarly, in State ex rel. Tollinger v. Gill (75 Ohio App., 62 N.E. 2d 760 [1944]), it was held that under the doctrine of stare decisis a ruling is final even as to parties who are strangers to the original proceeding and not bound by the judgment under the res judicata doctrine. The Philadelphia court expressed itself in this wise: ‘Stare decisis simply declares that, for the sake of certainty, a conclusion reached in one case should be applied to those which follow, if the facts are substantially the same, even though the parties may be different’ (Heisler v. Thomas Colliery Co., 274 Pa. 448, 452, 118A, 394, 395 [1922]. Manogahela Street Ry, Co. v. Philadelphia Co., 350 Pa 603, 39 A. 2d 909, 916 [1944]; In re Burtt’s Estate, 353 Pa. 217, 4 A. 2d 670, 677 [1945]). Thus, in J.M. Tuason v. Mariano, supra, this Court relied on its rulings in other cases involving different parties in sustaining the validity of a land title on the principle of ‘stare decisis et non quieta movere.’ (emphasis, Ours)

    "Here, therefore, even if the property subject of the Decision of G.R. No. 129887 is located in Urdaneta, Pangasinan while that in the instant case is located in Davao, we can very well apply the conclusion in G.R. No. 129887 that it is the twenty-year lease contract which is controlling inasmuch as not only are the parties the same, but more importantly, the issue regarding its validity is one and the same and, hence, should no longer be relitigated."cralaw virtua1aw library

    Considering the above rulings, we hold that the term of the lease in the present case is also twenty (20) years.

    Resolving now the issue of whether or not respondent Banco Filipino should be ejected for non-payment of rentals, the First Division of this Court in the same G.R. No. 137980 held:jgc:chanrobles.com.ph

    "Coming now to the issue of whether or not respondent should be ejected for non-payment of rentals, we do not agree with the ruling in G.R. No 129887 that since the unpaid rentals demanded by petitioner were based on a new rate which it unilaterally imposed and to which respondent did not agree, there lies no ground for ejectment. In such a case, there could still be ground for ejectment based on non-payment of rentals. The recent case of T & C Development Corporation v. Court of Appeals 13 is instructional on this point. It was there cautioned that —

    ‘The trial court found that private respondent had failed to pay the monthly rental of P1,800.00 from November 1992 to February 16, 1993, despite demands to pay and to vacate the premises made by petitioner. Even if private respondent deposited the rents in arrears in the bank, this fact cannot alter the legal situation of private respondent since the account was opened in private respondent’s name. Clearly, there was cause for the ejectment of private Respondent. Although the increase in monthly rentals from P700.00 to P1,800.00 was in excess of 20% allowed by B.P. Blg. 877, as amended by R.A. No. 6828, what private respondent could have done was to deposit the original rent of P700.00 either with the judicial authorities or in a bank in the name of, and with notice to, Petitioner. As this Court held in Uy v. Court of Appeals (178 SCRA 671, 676 [1989]):chanrob1es virtual 1aw library

    ‘The records reveal that the new rentals demanded since 1979 (P150.00 per month) exceed that allowed by law so refusal on the part of the lessor to accept was justified. However, what the lessee should have done was to deposit in 1979 the previous rent. This deposit in the Bank was made only in 1984 indicating a delay of more than four years.

    ‘From the foregoing facts, it is clear that the lessor was correct in asking for the ejectment of the delinquent lessee. Moreover, he should be granted not only the current rentals but also all the rentals in arrears. This is so even if the lessor himself did not appeal because as ruled by this Court, there have been instances when substantial justice demands the giving of the proper reliefs.’ . . .

    "While advance rentals appear to have been made to be applied for the payment of rentals due from the eleventh year to the twentieth year of the lease, to wit —

    ‘3. That upon the signing and execution of this Contract, the LESSEE shall pay the LESSOR ONE MILLION TWENTY THOUSAND PESOS ONLY (P1,020,000.00) Philippine Currency representing advance rental to be applied on the monthly rental for period from the eleventh to the twentieth year’,

    "the records show that such advance rental had already been applied for rent on the property for the period of August, 1985 to November, 1989.

    "Thus, when respondent stopped paying any rent at all beginning April, 1994, it gave petitioner good ground for instituting ejectment proceedings. We reiterate the ruling in T & C Development Corporation, supra, that if ever petitioner took exception to the unilateral or illegal increase in rental rate, it should not have completely stopped paying rent but should have deposited the original rent amount with the judicial authorities or in a bank in the name of, and with notice to, Petitioner. This circumstance, i.e., respondent’s failure to pay rent at the old rate, does not appear in G.R. No. 129887. Thus, while we are bound by the findings of this Court’s Second Division in that case under the principle of stare decisis, the fact that respondent’s failure to pay any rentals beginning April 1994, which provided ground for its ejectment from the premises, justifies our departure from the outcome of G.R. No. 129887. In this case, we uphold petitioner’s right to eject respondent from the leased premises."cralaw virtua1aw library

    It bears stressing that the facts of the instant case and those of G. R. Nos. 129887 and 137980 are substantially the same. The only difference is the site of respondent bank. The opposing parties are likewise the same.

    Clearly, in light of the Decisions of this Court in G.R. Nos. 129887 and 137980, which we follow as precedents, respondent Banco Filipino may not be ejected on the ground of expiration of the lease. However, since it stopped paying the rents beginning April 1994, its eviction from the premises is justified.

    WHEREFORE, the petition is GRANTED. The assailed Resolution of the Court of Appeals in CA-G.R. SP No. 44257 is MODIFIED insofar as it denies petitioner Tala’s prayer for ejectment of respondent Banco Filipino.

    Judgment is rendered ordering respondent Banco Filipino to vacate the subject premises and to restore possession thereof to petitioner Tala. Respondent is also ordered to pay Tala the monthly rental of P21, 100.00 computed from April 1994 up to the time it vacates the premises.

    Costs against Respondent.

    SO ORDERED.

    Melo, Vitug and Gonzaga-Reyes, JJ., concur.

    Panganiban, J., took no part; former counsel of a party.

    Endnotes:



    1. Sec. 34. Savings and mortgage banks may purchase, hold and convey real estate under the same conditions as those governing commercial banks as specified in Section twenty-five of this Act.

    2. Records, p. 106.

    3. Ibid., p 118.

    4. Ibid., p. 120.

    5. Ibid., p. 136.

    6. Ibid., p. 152-172.

    7. Ibid., pp. 82-98.

    8. Ibid., pp. 490-496.

    9. Rollo, pp. 168-169.

    10. Petition for Review, p. 5, Rollo, p. 12.

    11. Ibid., p. 91.

    12. 325 SCRA 768 (17 February 2000)

    13. G.R. No. 118381, 26 October 1999.

    G.R. No. 132051   June 25, 2001 - TALA REALTY SERVICES CORP. v. BANCO FILIPINO SAVINGS AND MORTGAGE BANK


    Back to Home | Back to Main

     

    QUICK SEARCH

    cralaw

       

    cralaw



     
      Copyright © ChanRobles Publishing Company Disclaimer | E-mail Restrictions
    ChanRobles™ Virtual Law Library | chanrobles.com™
     
    RED