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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
 

   
September-2001 Jurisprudence                 

  • G.R. No. 137538 September 3, 2001 - OFFICE OF THE OMBUDSMAN v. HON. FRANCISCO B. IBAY

  • A.M. No. MTJ-00-1249 September 4, 2001 - PHIL. GERIATRICS FOUNDATION, ET AL. v. LYDIA QUERUBIN LAYOSA

  • A.M. No. P-00-1373 September 4, 2001 - ELIZABETH A. TIONGCO v. ROGELIO S. MOLINA, ET AL.

  • A.M. No. P-01-1501 September 4, 2001 - JOSEPHINE D. SARMIENTO v. ALBERT S. SALAMAT

  • A.M. No. P-01-1502 September 4, 2001 - CRESENCIO N. BONGALOS v. JOSE R. MONUNGOLH and VICTORIA D. JAMITO

  • A.M. No. P-99-1357 September 4, 2001 - SHERWIN M. BALOLOY v. JOSE B. FLORES

  • A.M. No. RTJ-01-1651 September 4, 2001 - PROSECUTOR LEO C. TABAO v. JUDGE FRISCO T. LILAGAN

  • G.R. No. 125359 September 4, 2001 - ROBERTO S. BENEDICTO and HECTOR T. RIVERA v. THE COURT OF APPEALS

  • G.R. No. 126859 September 4, 2001 - YOUSEF AL-GHOUL, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 127181 September 4, 2001 - LAND BANK OF THE PHIL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 132709 September 4, 2001 - CAMILO L. SABIO, ET AL. v. INTERNATIONAL CORPORATE BANK, ET AL.

  • G.R. No. 134490 September 4, 2001 - PEOPLE OF THE PHILIPPINES v. JOEL BRAGAT

  • G.R. Nos. 135356-58 September 4, 2001 - PEOPLE OF THE PHIL. v. MELECIO SAGARINO

  • G.R. No. 138923 September 4, 2001 - PEOPLE OF THE PHIL. v. ANITA AYOLA, ET AL.

  • A.M. No. MTJ-01-1344 September 5, 2001 - LYDIO ARCILLA, ET AL. v. LUCIO PALAYPAYON, ET AL.

  • G.R. No. 128145 September 5, 2001 - J.C. LOPEZ & ASSOCIATES v. COMMISSION ON AUDIT, ET AL.

  • G.R. No. 133886 September 5, 2001 - PEOPLE OF THE PHILIPPINES v. OSCAR PARBA

  • G.R. No. 134101 September 5, 2001 - PEOPLE OF THE PHIL. v. FELINO O. LLANITA

  • G.R. No. 136054 September 5, 2001 - SEVERINA SAN MIGUEL v. COURT OF APPEALS, ET AL.

  • G.R. No. 132714 September 6, 2001 - PEOPLE OF THE PHIL. v. RENATO LALINGJAMAN

  • G.R. Nos. 139064-66 September 6, 2001 - PEOPLE OF THE PHIL. v. ALBERTO ARCE

  • G.R. No. 140529 September 6, 2001 - JOSE P. LOPEZ v. OFFICE OF THE OMBUDSMAN, ET AL.

  • G.R. No. 141400 September 6, 2001 - PEOPLE OF THE PHIL. v. EVANGELINE GANENAS

  • Admin. Case. No. 4863 September 7, 2001 - URBAN BANK v. ATTY. MAGDALENO M. PEÑA

  • G.R. No. 114858-59 September 7, 2001 - COLUMBUS PHILIPPINES BUS CORPORATION v. NATIONAL LABOR RELATIONS COMMISSION

  • G.R. No. 126352 September 7, 2001 - GSIS v. COURT OF APPEALS, ET AL.

  • G.R. No. 127261 September 7, 2001 - VISAYAN SURETY & INSURANCE CORPORATION v. COURT OF APPEALS, ET AL.

  • G.R. No. 129644 September 7, 2001 - CHINA BANKING CORP. v. COURT OF APPEALS, ET AL.

  • G.R. No. 131805 September 7, 2001 - PEOPLE OF THE PHIL. v. GREGORIO HERMOSA, ET AL.

  • G.R. No. 132064 September 7, 2001 - PEOPLE OF THE PHIL. v. ISAGANI BAYENG, ET AL.

  • G.R. No. 132320 September 7, 2001 - PEOPLE OF THE PHIL. v. CONRADO OJERIO

  • G.R. Nos. 135402-03 September 7, 2001 - PEOPLE OF THE PHIL. v. IAN GONZAGA

  • G.R. No. 136779 September 7, 2001 - PEOPLE OF THE PHIL. v. ARNEL ASUNCION

  • G.R. No. 142065 September 7, 2001 - LENIDO LUMANOG v. HON. JAIME N. SALAZAR

  • G.R. No. 142875 September 7, 2001 - EDGAR AGUSTILO v. COURT OF APPEALS, ET AL.

  • G.R. No. 144877 September 7, 2001 - DEVELOPMENT BANK OF THE PHIL. v. VERONICA AGUIRRE, ET AL.

  • A.M. No. P-01-1506 September 10, 2001 - GEORGE S. BICBIC v. DHALIA E. BORROMEO

  • G.R. Nos. 104769 & 135016 September 10, 2001 - AFP MUTUAL BENEFIT ASSO. v. COURT OF APPEALS, ET AL.

  • G.R. No. 118943 September 10, 2001 - MARIO HORNALES v. NLRC, ET AL.

  • G.R. No. 130362 September 10, 2001 - INT’L FLAVORS & FRAGRANCES (PHIL.) v. MERLIN J. ARGOS, ET AL.

  • G.R. No. 138485 September 10, 2001 - DR. v. COMMISSIONER OF INTERNAL REVENUE

  • G.R. No. 141970 September 10, 2001 - METROPOLITAN BANK v. FLORO T. ALEJO

  • G.R. No. 145588 September 10, 2001 - ESPERIDION LOPEZ, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 140398 September 11, 2001 - FRANCISCO DELA MERCED, ET AL. v. GSIS, ET AL.

  • G.R. No. 121877 September 12, 2001 - PEOPLE OF THE PHIL v. ERLINDA GONZALES

  • G.R. Nos. 138431-36 September 12, 2001 - PEOPLE OF THE PHIL. v. DIOSCORA M. ARABIA, ET AL.

  • G.R. No. 140903 September 12, 2001 - HENRY SY v. COMMISSION ON SETTLEMENT OF LAND PROBLEMS, ET AL.

  • A.M. No. 00-1-4-03-SC September 13, 2001 - RE: REQUEST FOR LIVE RADIO-TV COVERAGE OF THE TRIAL IN THE SANDIGANBAYAN OF THE PLUNDER CASES AGAINST FORMER PRESIDENT JOSEPH E. ESTRADA v. JOSEPH E. ESTRADA and INTEGRATED BAR OF THE PHILIPPINES

  • A.M. No. 00-4-188-RTC September 13, 2001 - REQUEST OF MR. OSCAR T. LLAMAS FOR RE-ASSIGNMENT OSCAR T. LLAMAS v. EMMANUEL LACANDOLA AND ET. AL.

  • G.R. No. 120009 September 13, 2001 - DOLE PHILIPPINES v. NATIONAL LABOR RELATIONS COMMISSION

  • G.R. No. 122095 September 13, 2001 - PEOPLE OF THE PHILIPPINES v. DOMINGO DAWISAN

  • G.R. No. 127913 September 13, 2001 - RCBC v. METRO CONTAINER CORP.

  • G.R. No. 132354 September 13, 2001 - PEOPLE OF THE PHIL. v. DEOMEDES IGLESIA

  • G.R. Nos. 136840-42 September 13, 2001 - PEOPLE OF THE PHIL. v. ROMEO NAVARETTE

  • G.R. No. 137250-51 September 13, 2001 - PABLO MARGAREJO v. HON. ADELARDO ESCOSES

  • G.R. No. 138972-73 September 13, 2001 - PEOPLE OF THE PHIL. v. EUGENIO B. MARQUEZ, ET AL.

  • G.R. No. 140512 September 13, 2001 - PEOPLE OF THE PHIL. v. PETER PELERAS, ET AL.

  • G.R. No. 142043 September 13, 2001 - PEOPLE OF THE PHIL. v. NELSON BITUON

  • G.R. No. 142430 September 13, 2001 - PEOPLE OF THE PHIL. v. RONNIE QUINICIO, ET AL.

  • G.R. No. 142444 September 13, 2001 - OFELIA D. ARTUZ v. COURT OF APPEALS, ET AL.

  • G.R. No. 142649 September 13, 2001 - ANTONIO C. SAN LUIS v. COURT OF APPEALS

  • G.R. No. 143702 September 13, 2001 - PEOPLE OF THE PHIL. v. ZALDY MENDOZA

  • G.R. No. 129212 September 14, 2001 - PEOPLE OF THE PHILIPPINES v. MARIO LACUESTA, ET AL.

  • A.M. No. RTJ-00-1575 September 17, 2001 - ISAGANI RIZON v. JUDGE OSCAR E. ZERNA

  • A.M. No. RTJ 99-1498 September 17, 2001 - VICENTE P. LIM v. JUDGE JACINTA B. TAMBAGO, ET AL.

  • G.R. No. 111584 September 17, 2001 - PRODUCERS BANK OF THE PHILIPPINES v. COURT OF APPEALS and SPOUSES SALVADOR Y. CHUA and EMILIA U. CHUA

  • G.R. No. 135644 September 17, 2001 - GOVERNMENT SERVICE INSURANCE SYSTEM v. SPOUSES GONZALO and MATILDE LABUNG-DEANG

  • G.R. No. 135912 September 17, 2001 - ODIN SECURITY AGENCY v. SANDIGANBAYAN, ET AL.

  • G.R. No. 138219 September 17, 2001 - GERARDO V. TAMBAOAN, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 138943-44 September 17, 2001 - PEOPLE OF THE PHIL. v. HENRY ALMAZAN

  • G.R. No. 141209 September 17, 2001 - ANTONIA HUFANA, ET AL. v. WILLIAM ONG GENATO

  • A. C. No. 5043 September 19, 2001 - ABEDIN L. OSOP v. ATTY. V. EMMANUEL C. FONTANILLA

  • G.R. No. 135936 September 19, 2001 - THE PEOPLE OF THE PHILIPPINES v. GUALBERTO MIRADOR alias "GOLING"

  • G.R. No. 144400 September 19, 2001 - DOMINGO O. IGNACIO v. COCA-COLA BOTTLERS PHILS.

  • A.M. No. MTJ-01-1369 September 20, 2001 - GUILLERMA D. CABAÑERO v. JUDGE ANTONIO K. CAÑON

  • A.M. No. MTJ-01-1371 September 20, 2001 - ATTY. NESCITO C. HILARIO v. JUDGE ROMEO A. QUILANTANG

  • A.M. No. RTJ-99-1472 September 20, 2001 - SPOUSES HERMINIO, ET Al. v. HON. DEMETRIO D. CALIMAG

  • A.M. No. P-01-1483 September 20, 2001 - EDNA FE F. AQUINO v. ISABELO LAVADIA

  • G.R. No. 116938 September 20, 2001 - LEONILA GARCIA-RUEDA v. REMEDIOS A. AMOR, ET AL.

  • G.R. No. 127405 September 20, 2001 - MARJORIE TOCAO and WILLIAM T. BELO v. COURT OF APPEALS and NENITA A. ANAY

  • G.R. No. 130399 September 20, 2001 - PUBLIC UTILITIES DEPARTMENT v. HON. TEOFISTO T. GUINGONA

  • G.R. Nos. 135068-72 September 20, 2001 - PEOPLE OF THE PHIL. v. MAXIMO RAMOS

  • G.R. No. 137674 September 20, 2001 - WILLIAM GO KIM HUY v. SANTIAGO GO KIM HUY, ET AL.

  • G.R. No. 139410 September 20, 2001 - PEOPLE OF THE PHILIPPINES v. SILVERIO AGUERO

  • G.R. No. 140898 September 20, 2001 - THE PEOPLE OF THE PHILIPPINES v. JOSE ISHIKAWA AMBA

  • A.M. No. P-99-1289 September 21, 2001 - JUDGE NAPOLEON S. DIAMANTE v. ANTHONY A. ALAMBRA

  • G.R. Nos. 119609-10 September 21, 2001 - PCGG v. HONORABLE SANDIGANBAYAN (Third Division), ET AL.

  • G.R. No. 128876 September 21, 2001 - PEOPLE OF THE PHILIPPINES v. MANOLITO FELIZAR y CAPULI

  • G.R. No. 132384 September 21, 2001 - PEOPLE OF THE PHILIPPINES v. MARLON GADIA

  • G.R. No. 134596 September 21, 2001 - RAYMUND ARDONIO v. THE PEOPLE OF THE PHILIPPINES

  • G.R. No. 142889 September 21, 2001 - EXECUTIVE LABOR ARBITER RICARDO N. OLAIREZ v. OMBUDSMAN ANIANO A. DESIERTO

  • G.R. No. 145416 September 21, 2001 - GOLDEN HORIZON REALTY CORPORATION v. SY CHUAN

  • A.M. No. 99-6-79-MTC September 24, 2001 - REPORT ON THE JUDICIAL AUDIT CONDUCTED IN THE MUNICIPAL TRIAL COURT

  • A.M. No. P-01-1512 September 24, 2001 - TERESITA H. ZIPAGAN v. JOVENCIO N. TATTAO

  • G.R. Nos. 132442-44 September 24, 2001 - PEOPLE OF THE PHILIPPINES v. BERNARDINO ARANZADO

  • G.R. Nos. 135524-25 September 24, 2001 - PEOPLE OF THE PHILIPPINES v. MANOLITO AGUSTIN

  • G.R. No. 141897 September 24, 2001 - METRO CONSTRUCTION v. CHATHAM PROPERTIES

  • G.R. No. 144404 September 24, 2001 - PEOPLE OF THE PHILIPPINES v. LEODEGARIO BASCUGUIN Y AGQUIZ

  • G.R. Nos. 127759-60 September 25, 2001 - PEOPLE OF THE PHIL. v. PO3 NOEL FELICIANO

  • G.R. Nos. 134527-28 September 25, 2001 - PEOPLE OF THE PHILIPPINES v. SERAPIO REY alias APIONG

  • G.R. Nos. 136867-68 September 25, 2001 - PEOPLE OF THE PHILIPPINES v. RODRIGO GALVEZ y JEREZ

  • G.R. No. 137612 September 25, 2001 - PEOPLE OF THE PHILIPPINES v. FRANCISCO ANTINERO BERIARMENTE

  • A.C. No. 4497 September 26, 2001 - MR. and MRS. VENUSTIANO G. SABURNIDO v. ATTY. FLORANTE E. MADROÑO

  • A.C. No. 4990 September 26, 2001 - ELENA ZARATE-BUSTAMANTE and LEONORA SAVET CATABIAN v. ATTY. FLORENTINO G. LIBATIQUE

  • G.R. No. 122824 September 26, 2001 - AURORA F. IGNACIO v. VALERIANO BASILIO,

  • G.R. No. 123058 September 26, 2001 - PEOPLE OF THE PHIL. v. ALFREDO NAPUD, JR.

  • G.R. No. 129107 September 26, 2001 - ALFONSO L. IRINGAN v. HON. COURT OF APPEALS , ET AL.

  • G.R. Nos. 129530-31 September 26, 2001 - PEOPLE OF THE PHILIPPINES v. WILFREDO OLARTE

  • G.R. Nos. 138308-10 September 26, 2001 - THE PEOPLE OF THE PHILIPPINES v. PABLO SANTOS

  • G.R. No. 142564 September 26, 2001 - PEOPLE OF THE PHILIPPINES v. HILGEM NERIO y GIGANTO

  • G.R. Nos. 143108-09 September 26, 2001 - REPUBLIC OF THE PHILIPPINES. v. COURT OF APPEALS

  • Adm. Case. No. 5505 September 27, 2001 - SEVERINO RAMOS v. ATTY. ELLIS JACOBA and ATTY. OLIVIA VELASCO JACOBA

  • G.R. No. 131864-65 September 27, 2001 - PEOPLE OF THE PHILIPPINES v. SHERJOHN ARONDAIN and JOSE PRECIOSO

  • G.R. Nos. 134963-64 September 27, 2001 - ALFREDO LONG and FELIX ALMERIA v. LYDIA BASA

  • G.R. No. 137676 September 27, 2001 - PEOPLE OF THE PHILIPPINES v. ATTY. ROBERTO DIONISIO

  • G.R. No. 144035 September 27, 2001 - PEOPLE OF THE PHIL. v. VICENTE M. BASQUEZ

  • A.M. No. P-00-1391 September 28, 2001 - LIBRADA D. TORRES v. NELSON C. CABESUELA

  • G.R. No. 122425 September 28, 2001 - FLORDELIZA H. CABUHAT v. THE HONORABLE COURT OF APPEALS

  • G.R. No. 124535 September 28, 2001 - THE RURAL BANK OF LIPA CITY, ET AL. v. HONORABLE COURT OF APPEALS, ET AL.

  • G.R. No. 125154 September 28, 2001 - DIGNA VERGEL v. COURT OF APPEALS and DOROTEA-TAMISIN GONZALES

  • G.R. No. 125442 September 28, 2001 - PEOPLE OF THE PHILIPPINES v. FERNANDO ARELLANO y ROBLES

  • G.R. No. 127232 September 28, 2001 - GOLDENROD v. HONORABLE COURT OF APPEALS and PATHFINDER HOLDINGS (PHILIPPINES)

  • G.R. No. 127241 September 28, 2001 - LA CONSOLACION COLLEGE, ET AL. v. NLRC , ET AL.

  • G.R. No. 134128 September 28, 2001 - PEOPLE OF THE PHILIPPINES v. GERARDO DE LAS ERAS y ZAFRA

  • G.R. No. 134928 September 28, 2001 - PEOPLE OF THE PHILIPPINES v. FILOMENO BARNUEVO. ET AL.

  • G.R. Nos. 140789-92 September 28, 2001 - THE PEOPLE OF THE PHILIPPINES v. ALIPIO CARBONELL and DIONISIO CARBONELL

  • G.R. No. 145371 September 28, 2001 - PEOPLE OF THE PHILIPPINES v. BEN AQUINO and ROMEO AQUINO

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    G.R. No. 145416   September 21, 2001 - GOLDEN HORIZON REALTY CORPORATION v. SY CHUAN

     
    PHILIPPINE SUPREME COURT DECISIONS

    FIRST DIVISION

    [G.R. No. 145416. September 21, 2001.]

    GOLDEN HORIZON REALTY CORPORATION, Petitioner, v. SY CHUAN, doing business under the name and style of SHAMROCK MANUFACTURING ENTERPRISES, Respondents.

    D E C I S I O N


    YNARES-SANTIAGO, J.:


    The instant petition for review on certiorari seeks to set aside the June 14, 2000 Decision of the Court of Appeals in CA-G.R. SP No. 52486, 1 as well as its October 13, 2000 Resolution, 2 denying petitioner’s Motion for Reconsideration.chanrob1es virtua1 1aw 1ibrary

    On May 4, 1978, National Development Corporation leased to petitioner a portion of its parcel of land, known as the NDC Compound, located in Pureza Street, Sta. Mesa, Manila, consisting of 3,222.80 square meters. The lease was to subsist for a period of ten (10) years, or until October 4, 1988, renewable for another ten (10) years upon mutual consent of both parties. Petitioner was also given an option to purchase the property under lease, subject to certain conditions.chanrob1es virtua1 1aw 1ibrary

    After the lease expired on October 4, 1988, National Development Corporation refused to renew the lease for another ten (10) years, prompting petitioner to file a complaint for specific performance before the Regional Trial Court of Makati City, Branch 144. 3 Meanwhile, on January 6, 1989, while the said case was pending, then President Corazon C. Aquino issued Memorandum Order No. 214, transferring the whole NDC Compound in favor of the Polytechnic University of the Philippines. Nevertheless, such transfer was made "subject to such leases; or liens and encumbrances that may be existing thereon." 4

    While the cases between petitioner and National Development Corporation were pending, the latter continued to accept the rental payments from petitioner, 5 who continued to occupy the leased premises, pay real estate taxes for the building thereon and take out fire insurance for the same. 6

    Meanwhile, since the lease agreement allowed petitioner to sublease the premises or portions thereof, petitioner entered into sublease contracts, among which was one with private respondent dated March 20, 1995, pertaining to Units 25, 26 and 27 of the NDC Compound, consisting of a total area of 324 square meters. The term of the sublease stipulated as follows —

    3. That, this agreement shall take effect on January 1995 and shall be for a period of either two (2) years or upon promulgation of a decision/order/resolution by the Makati Regional Trial Court in Civil Case No. 88-2238 entitled "NDC, Polytechnic University v. Golden Horizon Realty Corporation", whichever comes first. . . . .7

    After private respondent’s sublease expired on December 31, 1996, negotiations took place between the parties but no renewal was agreed upon. Thus, on April 15, 1997, petitioner’s counsel served a written demand on private respondent to vacate the subleased premises within five (5) days from receipt of the same. This was reiterated in another letter dated August 20, 1997.

    Still, private respondent failed to vacate the premises, whereupon petitioner filed a case for ejectment on October 1, 1997 before the Metropolitan Trial Court of Manila, Branch 29. 8 In his Answer with Compulsory Counterclaim, private respondent argued that petitioner had no right to file the ejectment case since its lease over the subject property had long expired before the sublease between them was executed, rendering the latter void. Private respondent also alleged that the increase in rentals that petitioner demanded for the renewal of the sublease was highly unconscionable.

    On November 12, 1998, the court a quo rendered a decision in favor of petitioner, disposing of the case as follows —

    WHEREFORE, judgment is hereby rendered ordering defendant and any and all persons claiming rights under him to vacate and leave the subject premises and surrender the possession thereof to plaintiff and to pay plaintiff the following:chanrob1es virtual 1aw library

    1. the amount of P42,120.00 per month as reasonable compensation for his continued use and enjoyment of the said premises from April 1997 and every month thereafter until he vacates and leaves the premises;

    2. the amount of P10,000.00 as attorney’s fees; and

    3. the costs of suit.

    SO ORDERED. 9

    On appeal, the Regional Trial Court of Manila, Branch 45, 10 reversed the aforesaid decision and dismissed petitioner’s complaint on April 8, 1999. 11 This notwithstanding, private respondent vacated the subject premises on April 20, 1999.

    Petitioner filed a petition for review with the Court of Appeals, which was dismissed in the assailed decision dated June 14, 2000. Petitioner’s Motion for Reconsideration was denied on October 13, 2000. Hence, this petition, raising the following errors:chanrob1es virtual 1aw library

    I


    THE HONORABLE COURT OF APPEALS ERRED IN ALLOWING THE RESPONDENT TO CONTROVERT THE TITLE OF HIS LANDLORD.

    II


    THE COURT OF APPEALS ERRED IN HOLDING THAT THE LEASE CONTRACT OF PETITIONER WITH NDC HAD ALREADY EXPIRED.

    III


    THE COURT OF APPEALS ERRED IN AFFIRMING THE JUDGMENT OF THE RTC REVERSING THE DECISION OF THE MTC AND DISMISSING PETITIONER’S COMPLAINT FOR EJECTMENT 12

    The petition is meritorious.

    The contention that petitioner had no legal personality to bring the ejectment suit against private respondent lacks merit.

    It is beyond dispute that for the entire duration of the sublease from January 1995 to December 1997, private respondent had undisturbed possession of the subject premises as sublessee of the same. Rule 131, Section 2(b) of the Rules of Court precludes a tenant from denying the title of his landlord at the time of the commencement of the relation of landlord and tenant between them. Thus:chanrob1es virtual 1aw library

    SECTION 2. Conclusive presumptions. — The following are instances of conclusive presumptions:chanrob1es virtual 1aw library

    x       x       x


    (b) The tenant is not permitted to deny the title of his landlord at the time of the commencement of the relation of landlord and tenant between them.

    In Geminiano v. Court of Appeals, 13 we stated:chanrob1es virtual 1aw library

    The private respondents, as lessees who had undisturbed possession for the entire term under the lease, are then estopped to deny their landlord’s title, or to assert a better title not only in themselves, but also in some third person while they remain in possession of the leased premises and until they surrender possession to the landlord. This estoppel applies even though the lessor had no title at the time the relation of lessor and lessee was created, and maybe asserted not only by the original lessor, but also by those who succeed to his title. (Emphasis ours)

    Private respondent cannot feign ignorance of the fact that petitioner’s lease with National Development Company had expired long before its own sublease with him had been constituted. The very contract of sublease entered into by private respondent with petitioner expressly mentions "Civil Case No. 88-2238 entitled ‘NDC, Polytechnic University v. Golden Horizon Realty Corporation’." This constituted actual notice to private respondent of the pending litigation between petitioner and the original lessor concerning the subject property.

    Moreover, even after the expiration of petitioner’s lease contract with National Development Company, petitioner continued to pay rent to National Development Company and the latter continued to accept such rent payments while the case between them was pending. This situation obtained even during the period in which private respondent occupied the subleased premises and after demand had been made upon him to vacate the same. 14

    Under such circumstances, it is but fair that private respondent also continue to pay rentals to petitioner. Otherwise, private respondent would unjustly enrich himself if he would not comply with his obligations as sublessee, while petitioner faithfully performs its obligations as lessee to National Development Company.

    Private respondent insists that the monthly rental rate of P42,120.00 fixed by the court a quo in its decision is unconscionable, exorbitant and unlawful. We do not agree.

    In Sia v. Court of Appeals, 15 the lessee was made to pay the monthly rent of P5,000.00 as fixed by the Regional Trial Court on appeal. The petitioner there similarly questioned the increase in the rental rate as excessive, exorbitant and unreasonable, the original rental on the premises being only P2,000.00 a month. We overruled petitioner’s arguments and held:chanrob1es virtual 1aw library

    On the contrary, the records bear out that the P5,000.00 monthly rentals is a reasonable amount, considering that the subject lot is prime commercial real property whose value has significantly increased and that P5,000.00 is within the range of prevailing rental rates in that vicinity. Moreover, petitioner has not proffered controverting evidence to support what he believes to be the fair rental value of the leased building since the burden of proof to show that the rental demanded is unconscionable or exorbitant rests upon the lessee. Thus, here and now we rule, as we did in the case of Manila Bay Club v. Court of Appeals (245 SCRA 715 [1995]), that petitioner having failed to prove its claim of excessive rentals, the valuation made by the Regional Trial Court, as affirmed by the respondent Court of Appeals, stands.chanrob1es virtua1 1aw 1ibrary

    "It is worth stressing at this juncture that the trial court had the authority to fix the reasonable value for the continued use and occupancy of the leased premises after the termination of the lease contract, and that it was not bound by the stipulated rental in the contract of lease since it is equally settled that upon termination or expiration of the contract of lease, the rental stipulated therein may no longer be the reasonable value for the use and occupation of the premises as a result or by reason of the change or rise in values. Moreover, the trial court can take judicial notice of the general increase in rentals of real estate specially of business establishments . . . ." 16 (Id., pp. 731-732)chanrob1es virtua1 1aw 1ibrary

    In addition to the monthly rental which should be paid by private respondent on the subject premises from April 1997 up to April 1999, private respondent is also liable to pay interest at the rate of 6% per annum from the accrual of such rent, pursuant to Article 2209 of the Civil Code. From the finality of this judgment until the full satisfaction of the monetary award, the applicable rate of legal interest shall be 12%, since the same shall by then become a forbearance of credit. 17

    WHEREFORE, the instant Petition is GRANTED. The Decision of the respondent Court of Appeals in CA-G.R. SP No. 52486 is SET ASIDE. The November 12, 1998 Decision of the Metropolitan Trial Court of Manila, Branch 29 in Civil Case No. 157082-CV is REINSTATED, subject to the payment by private respondent of legal interest of 6% per annum on the rentals due, from April 1997 until April 1999. The rate of legal interest shall be 12% from the time this decision becomes final.

    SO ORDERED.

    Davide, Jr., C.J., Kapunan, and Pardo, JJ., concur.

    Puno, J., on official leave.

    Endnotes:



    1. Penned by Associate Justice Delilah Vidallon-Magtolis and concurred in by Associate Justices Eloy R. Bello, Jr. and Jose L. Sabio, Jr.; Petition, Annex "A" ; Rollo, pp. 22-25.

    2. Petition, Annex "B" ; Rollo, p. 27.

    3. Docketed as Civil Case No. 88-2238.

    4. See Memorandum Order No. 214, p. 2; Rollo, p. 75.

    5. See Plaintiff’s Position Paper, Annex "H" ; Records, p. 93.

    6. Id, Annexes "F", "G" and "G-1", pp. 90-92.

    7. Complaint, Annex "A", Contract of Lease, p. 1; Records, p. 5.

    8. Docketed as Civil Case No. 157082.

    9. Decision, Civil Case No. 157082-CV, p. 4; Records, p. 139.

    10. Civil Case No. 99-92174.

    11. See Decision, dated 8 April 1999, penned by Judge Marcelino L. Sayo, Jr.; Records, pp. 222-226.

    12. Petition for Review, p. 8; Rollo, p. 10.

    13. G.R. No. 120303, 259 SCRA 344, 350-51 [1996]; Citations omitted.

    14 See Note 6.

    15. G.R. No. 108222, 272 SCRA 141 [1997].

    16. Ibid at 159-160.

    17. See Gojocco v. Court of Appeals, G.R. No 102604, 320 SCRA 625[1999].

    G.R. No. 145416   September 21, 2001 - GOLDEN HORIZON REALTY CORPORATION v. SY CHUAN


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