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

TOPIC: Art. 8

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.

FACTS:

1. Tala alleged that on the basis of a contract of lease executed on August 25, 1981, its contract with Banco Filipino expired on August 31, 1992. 

2. However, Banco Filipino has continued to occupy the premises even after the expiration of the lease.

3. 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 a rental escalation of 10% per year; and advance deposit equivalent to rents for four months, plus goodwill of P500,000.00.

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

ISSUES:

Whether or not respondent Banco Filipino should be ejected for non-payment of rentals.

RULING:

YES. Following the principle of stare decisis, previous precedents In G.R. No. 129887, the private respondents also failed to pay the monthly rental after the imposed increase of the lessor from P700.00 to P1,800.00.  However, what the lessee should have done was to deposit the original amount of rent either with the judicial authorities or in a bank in the name of, and with notice to, petitioner.  From the foregoing facts, it is clear that the lessor was correct in asking for the ejectment of the delinquent lessee. 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.

The same issue was raised in G.R. No. 137980 wherein advanced payment of rental had been agreed upon and respondent stopped  paying any rent. This case followed stare decisis wherein G.R. No. 129887  which provided ground for its ejectment from the premises, justifies the Court's departure from the outcome of G.R. No. 129887. In this case, the petitioner's right to eject respondent from the leased premises was upheld. 

The cases are 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.

SC Decision: 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.