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[G.R. No. 146599.March 19, 2001]
PNB vs. ENJAY, INC. et al.
SECOND DIVISION
Gentlemen:
Quoted hereunder, for your information, is a resolution of this Court dated MAR 19 2001.
G.R. No. 146599(Philippine National Bank vs. Enjay, Inc. and Grech Food Industries, Inc.)
Petitioner Philippine National Bank granted credit accommodation to respondent Grech Food Industries, Inc., but the latter was unable to pay its obligation. As settlement thereof, respondent Grech conveyed to PNB its cold storage plant .by way of dacion en pago. Later, respondent Grech leased the cold storage plant from PNB.
On April 29, 1979, respondent Enjay, Inc. (Enjay) leased from respondent Grech a portion of the said cold storage plant for the purpose of storing imported meat. As respondent Grech failed to pay the rentals due, PNB filed an ejectment Suit against it.
On August 15, 1983, the Metropolitan Trial Court rendered a decision ordering respondent Grech to vacate the premises. Meanwhile, on May 7, 1983, respondents Grech and Enjay entered into a contract of lease. In September 1983, respondent Grech received 820 cartons of imported meat for storage from respondent Enjay.
On June 1, 1984, a writ of execution pursuant to the ejectment suit was issued against respondent Grech.
In August 1984, PNB took over the cold storage plant. It sent a letter to respondent Enjay informing it that PNB was taking the "management, control, and possession of the cold storage plant"; that it was continuing the operation of the storage; and that rentals accruing subsequent to August 1, 1984 should be paid to it (PNB).
On August 6, 1984, respondent Enjay sent a letter informing PNB that 8.5 kgs. of meat kept in the cold storage plant were infested by rats and that it would deduct the cost of said meat from the rental due. This was reiterated in its subsequent letters, dated September 25, 1984 and October 16, 1984, respectively.
On October 29, 1984, PNB sent notice to respondent Enjay to vacate the premises effective November 15, 1984.
On the other hand, respondent Enjay filed a complaint for sum of money and damages against petitioner PNB and respondent Grech before the Regional Trial Court, Branch 59, Makati, docketed as Civil Case No. 9498, entitled "Enjay, Inc. v. Grech Food Industries, Inc. and/or PNB Cold Storage." Respondent Grech was declared in default for failure to appear during the pre-trial.
The trial court rendered a decision, the dispositive portion thereof reads:
Wherefore, premises considered, judgment is hereby rendered in favor of the plaintiff Enjay, Inc., ordering the defendants Grech Food Industries, Inc. and Philippine National Bank Cold Storage to pay plaintiff, jointly and severally, the following:
1. the sum of
FOUR THOUSAND TWO HUNDRED (P4,200.00) PESOS, representing the initial
deposit which should have been refunded to the plaintiff upon the termination
of the lease;
2. the sum of
FIFTY SEVEN THOUSAND FIVE HUNDRED FORTY PESOS AND EIGHTY-EIGHT CENTAVOS (P57,540.88)
representing the value of the imported meat which was spoiled and/or damaged by
the rats;
3. the sum of
FIFTEEN THOUSAND (P15,000.00) PESOS as reasonable attorney's fees; and
4. the costs of litigation.
Defendants' counterclaim against plaintiff and defendant PNB's cross-claim against defendant Grech are further ordered DISMISSED, for lack of merit.
SO ORDERED.
On appeal, the Court of
Appeals, in a decision, dated December 28, 2000, affirmed with modification the
decision of the trial court. It held PNB estopped from denying its liability to
respondent Enjay which arose even before August 1, 1984. It held that having
accepted the benefits under the lease contract, PNB could not later on deny
liability under the same; that whatever obligation incurred by respondent Grech
was demandable from PNB as a successor-in-interest; that the P4,200
award in favor of respondent Enjay should be deleted and that PNB should be
held liable for P57,540.88 representing the cost of the spoiled meat.
The appellate court agreed with PNB that the amount of P3,707.72 as
rentals should be deducted from the award in favor of respondent Enjay because
the latter failed to deny that it used the premises and there was no proof of
payment of the said amount. The dispositive portion of the appeals court's
decision reads:
WHEREFORE,
the decision of the Regional Trial Court is AFFIRMED with the modification that
the amount of P4,200.00 be stricken off as an award; furthermore, the
amount of P3,707.72 representing rentals is hereby allowed to be
deducted from the total award.
SO ORDERED.
Hence, this present petition. PNB contends that it is not estopped from denying its liability to respondent Enjay and that it is not liable to pay respondent Enjay damages and attorney's fees.
The petition has no merit.
The determination as to whether or not petitioner PNB is liable for damages and attorney's fees to respondent Enjay is a question of fact. The Court finds no reason to set aside the factual findings of the trial court, which the appeals court affirmed. Indeed, PNB acknowledged in its letter, dated August 6, 1984, that it was continuing and maintaining the operation of the storage plant and that rentals for the use of the storage plant should be paid to it. There was no separate contract of lease entered into between petitioner PNB and respondent Enjay. There was a mere continuation of the original contract of lease between respondents Grech and Enjay. PNB merely succeeded respondent Grech as the lessor. PNB is thus estopped from denying its liability to respondent Enjay arising from the damaged imported meat products stored in the subject premises.
Neither can PNB set up the defense that there was no privity of contract between it and respondent Enjay. Art. 1431 of the Civil Code provides that through estoppel, an admission or representation is rendered conclusive upon the person making it, and cannot be denied or disproved as against the person relying thereon. Moreover, Rule 131, �2(a) of the Rules of Court provides that whenever a party has, by his own declaration, act, or omission, intentionally and deliberately led another to believe a particular thing true, and to act upon such belief, he cannot, in any litigation arising out of such declaration, act, or omission, be permitted to falsify it. The liability of PNB for actual damages sustained by respondent Enjay having been duly proved, the award of attorney's fees is proper.
For the foregoing reasons, the petition is DENIED for lack of showing that the Court of Appeals committed any reversible error.
Very truly yours,
(Sgd.) TOMASITA M. DRIS
Clerk of Court
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