Friday, February 20, 2015

Wee v. De Castro [2008]




nature
Petition for Review on Certiorari under Rule 45 of the Revised Rules of Court
action
Action for ejectment instituted by George de Castro, on his own behalf and on behalf of Annie de Castro, Felomina de Castro Uban and Jesus de Castro.  
FACTS
De Castro alleged that they are the registered owners of the two-storey building. (P9K per month). Both parties agreed that effective 1 October 2001, the rental payment shall be increased from P9K to P15K.  Wee failed to pay the increase on rent.
The rental dispute was brought to the Barangay. Since they failed to reach an amicable settlement, a Certificate was issued. George de Castro, together with his siblings and co-owners, Annie de Castro, Felomina Peaches de Castro Uban and Jesus de Castro, filed the Complaint for ejectment before the MTC.
Although the Complaint stated that it was being filed by all of the resps:
·          Verification and the Certificate of Non-Forum Shopping were signed by George de Castro alone.
·          He subsequently attached the SPAs executed by his sisters Annie and Felomina  
wee’s defenses
·          no agreement between the parties to increase the rents demand for an increase was exorbitant
·          Resps failed to comply with the jurisdictional requirement of conciliation before the Barangay Lupon prior to the filing before the courts
·          MTC lacked jurisdiction over the ejectment suit, since resps' Complaint was devoid of any allegation that there was an "unlawful withholding" of the subject property by the pet.
lower courts
MTC dismissed the case for failure to comply with the prior conciliation requirement before the Barangay Lupon.  
RTC affirmed the dismissal. Since no concession was reached by the parties to increase such amount to P15K, pet cannot be faulted for paying only the originally agreed upon monthly rentals.
Resps' failure to refer the matter to the Barangay court for conciliation process barred the ejectment case, conciliation before the Lupon being a condition sine qua non in the filing of ejectment suits.
The allegation in the Complaint was flawed, since resps failed to allege that there was an "unlawful withholding"  taking out from the purview of an action for unlawful detainer.
Complaint failed to comply with the rule that a co-owner could not maintain an action without joining all the other co-owners.
CA denied the MR interposed by pet for lack of merit.
issues/ruling
ART. 487. Any one of the co-owners may bring an action in ejectment.
This article covers all kinds of action for the recovery of possession:
·          forcible entry and unlawful detainer (accion interdictal),
·          recovery of possession (accion publiciana), and
·          recovery of ownership (accion de reivindicacion).

Carandang v. Heirs of De Guzman: a co-owner is not even a necessary party to an action for ejectment, for complete relief can be afforded even in his absence, thus: All co-owners are real parties in interest. However, pursuant to NCC 487, any one of them may bring an action, any kind of action for the recovery of co-owned properties. Therefore, only one of the co-owners, namely the co-owner who filed the suit for the recovery of the co-owned property, is an indispensable party thereto. The other co-owners are not indispensable parties. They are not even necessary parties, for a complete relief can be afforded in the suit even without their participation, since the suit is presumed to have been filed for the benefit of all co-owners.
there’s spa anyway
Annie and Felomina each executed a SPA, giving George the authority to initiate the case.
A power of attorney is an instrument in writing by which one person, as principal, appoints another as his agent and confers upon him the authority to perform certain specified acts or kinds of acts on behalf of the principal.
authority to sign the Verification and the Certificate of Non-Forum Shopping
Mendoza v. Coronel: The execution of the certification against forum shopping by the attorney-in-fact in the case at bar is not a violation of the requirement that the parties must personally sign the same. 
Failure by George to attach the SPAs is innocuous, since it is undisputed that he was granted by his sisters the authority to file the action for ejectment against pet prior to the institution of the case. 
Torres Peaches v. Specialized Packaging Development Corporation: the personal signing of the verification requirement was deemed substantially complied with when 2/ 25 real parties-in-interest, who undoubtedly have sufficient knowledge and belief to swear to the truth of the allegations in the petition, signed the verification attached to it.
WON failure to allege “unlawful withoulding” is fatal to the cause of action
NO, what determines the nature of an action as well as which court has jurisdiction over it are the allegations in the complaint and the character of the relief sought.
Defendant's possession was originally lawful but ceased to be so upon the expiration of his right to possess. Hence, the phrase "unlawful withholding" has been held to imply possession on the part of defendant,, having no other source than a contract, express or implied, and which later expired as a right and is being withheld by defendant.
Barba v. CA: although the phrase "unlawfully withholding" was not actually used in her complaint, the Court held that her allegations amounted to an unlawful withholding of the subject property by therein private resps, because they continuously refused to vacate the premises even after notice and demand.
failure of the counsel to attach official receipt of his ibp dues
Moot and academic, since resps' counsel has already duly complied therewith.  
BARANGAY JUSTICE SYSTEM
Pet: Certification to file action issued by the Barangay Lupon appended to the resps' Complaint merely referred to the issue of rental increase and not the matter of ejectment.
The barangay justice system was established primarily as a means of easing up the congestion of cases in the judicial courts. The barangay courts is essentially a compulsory arbitration in character. To ensure this objective, Section 6 of PD 1508 requires the parties to undergo a conciliation process as a precondition to filing a complaint in court subject to certain exceptions.  PD No. 1508 is now incorporated in Republic Act No. 7160 (The Local Government Code), which took effect on 1 January 1992.
While it is true that the Certification refers only to rental increase and not to the ejectment of pet from the subject property, the submission of the same for conciliation before the Barangay Lupon constitutes sufficient compliance with the provisions of the Katarungang Pambarangay Law. Given the particular circumstances of the case at bar, the conciliation proceedings for the amount of monthly rental should logically and reasonably include also the matter of the possession of the property subject of the rental, the lease agreement, and the violation of the terms thereof.
The contract of lease between the parties did not stipulate a fixed period. Hence, the parties agreed to the payment of rentals on a monthly basis. On this score, NCC 1687[1]
The period of such lease is deemed terminated at the end of each month.  Without a lease contract, pet has no right of possession to the subject property and must vacate the same.  
Lessor's right to rescind the contract of lease for non-payment of the demanded increased rental was recognized by this Court in Chua v. Victorio::
Payment of the rent is one of a lessee's statutory obligations, and, upon non-payment by pets of the increased rental in Sept 1994, the lessor acquired the right to avail of any of the three remedies outlined above. (Emphasis supplied.)
Pet is liable for the payment of back rentals, attorney's fees and cost of the suit. Resps must be duly indemnified for the loss of income from the subject property on account of pet's refusal to vacate the leased premises.
CA AFFIRMED in toto.



[1] Art. 1687. If the period for the lease has not been fixed, it is understood to be from year to year, if the rent agreed upon is annual; from month to month, if it is monthly; from week to week, if the rent is weekly; and from day to day, if the rent is to be paid daily. However, even though a monthly rent is paid, and no period for the lease has been set, the courts may fix a longer term for the lease after the lessee has occupied the premises for over one year. If the rent is weekly, the courts may likewise determine a longer period after the lessee has been in possession for over six months. In case of daily rent, the courts may also fix a longer period after the lessee has stayed in the place for over one month. 

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