488 Phil. 174
PUNO, J.:
(5) Upon the expiration of the term of this Contract or for any reason if LESSEE shall be compelled to vacate the premises, LESSEE shall surrender possession of the leased premises to the LESSORS free from any substantial damages to the land and improvements thereon as well as from any occupants therein, it being understood and agreed that it shall be the obligation of the LESSEE to maintain the land and the improvements thereon as well as to prevent and eject unlawful occupants thereon during the term of this Contract up to the time that possession is surrendered to the LESSORS;After the expiration of the contract, petitioner allegedly proposed to extend the lease. In a letter dated March 11, 1992,[3] respondents agreed to reduce the area leased from 19,213 sq. m. to 9,205 sq. m. but increased the rent to P3.50 per square meter or P32,217.50 per month. They gave petitioner seven days within which to reply, in vain. Still, respondents continued to exchange communications with petitioner.[4] In April 1994, petitioner's representative allegedly met with respondents' counsel, during which, the former offered to pay at a rental rate of P10,000.00 per month. This offer was rejected by respondents' counsel. Respondents sent their last letter to petitioner on June 7, 1994,[5] reiterating their demand for it to pay unpaid rentals amounting to P934,307.50[6] and to vacate the leased premises, together with the occupants therein, within ten (10) days. Petitioner refused to heed their demands.
(6) LESSEE shall not allow any act which will prevent LESSORS from peaceful enjoyment and possession of the leased premises after the expiration of the term of this Contract; failure on the part of the LESSEE to comply with this obligation shall entitle the LESSORS to damages;
(7) LESSEE shall not sublease the premises or any portion thereof or assign its rights under this Contract without the prior written consent of the LESSORS;
(8) In case LESSORS are compelled to eject any occupant in the premises after the expiration of this Contract and such occupant occupies the premises during the term of this Contract or by reason of any act attributable to the LESSEE, the costs of such ejectment and damages shall be for the account of the LESSEE; x x x
(11) LESSORS shall have the right to terminate this Contract due to violation of any term and condition herein upon serving a written notice to that effect; in no case shall LESSORS be obliged to return to LESSEE any amount of rental paid in advance by the latter if the LESSORS shall exercise its (sic) right to terminate this Contract by reason of this paragraph.
Should LESSEE serve a written notice to the LESSORS terminating this Contract, the unpaid rental corresponding to the unexpired period shall be paid by the LESSEE to the LESSORS; thereafter, LESSEE shall first comply with its obligation to remove any occupant from the premises and surrender possession to the LESSORS; x x x
Viewed from the foregoing findings, the Honorable Court hereby renders judgment in favor of the plaintiffs and as against defendant corporation, ordering the latter and all persons or occupants who claim rights or interest from the defendant:In allowing the increased monthly rental of P32,217.50, the MTCC considered the fact that under the lease contract, respondents, as lessors, have become the owners of the improvements introduced to the leased lots upon the termination of the lease contract. It took note of the improvements in the lots consisting of, among others, a building used by petitioner as its office and another building used as residence by Governor Democrito O. Plaza's family. It held that “[b]eing the co-owners not only of the land but also of the improvements therein, it is [respondents'] veritable right to demand the increase of the use of the land and buildings from the [petitioner] corporation.”[11]SO ORDERED.[10]
- to vacate and relinquish the possession of the land and ownership of the buildings leased to them;
- to pay the rentals at Thirty[-]two Thousand Two Hundred Seventeen Pesos and 50/100 (P32,217.50) per month from December 16, 1991 until defendant corporation shall have vacated and relinquished possession and ownership of the land and buildings;
- to pay the sum of Twenty Thousand (P20,000.00) Pesos as attorneys’ fees;
- to pay the sum of Five Thousand (P5,000.00) Pesos as litigation expenses; and
- to pay the cost of this suit.
WHEREFORE, the appealed decision is hereby affirmed with certain modifications, to wit:The RTC found the amount of P32,217.50 as “exorbitant and unreasonable.” It gave credence to the affidavit of Maghuyop that the leased land is remote. The RTC noted that the leased land is classified as residential with a market value of P745,210.00, as shown by Tax Declaration No. GR-11-002-0427-R.[13] It pointed out that if the lessee were to pay monthly rental of P32,217.50, the lessors would recover the acquisition cost of the land in less than two (2) years. It held that this is contrary to “business practices and experience" where "recovery of investment or acquisition cost of lands and buildings will take on the average a period of ten (10) years.” Hence, it reduced the monthly rent to P14,000.00.[14]
a) directing and ordering defendant-appellant to vacate the premises of the 2 lots subject matter of this case and to deliver the possession thereof in (sic) the plaintiffs-appellees, including all the improvements introduced by the defendant-appellant thereon like the buildings which improvements are now owned by the appellees pursuant to and by the operation of the terms and conditions of paragraph (3) of the written contract that expired on December 15, 1991;
b) directing and ordering defendant-appellant to pay plaintiffs-appellees the amount of Fourteen Thousand Pesos (P14,000.00) as monthly rental starting from December 16, 1991 until defendant-appellant shall have vacated the leased premises, crediting in favor of the defendant-appellant the amounts received by the plaintiffs-appellees as rental through the sheriff, which amounts are the amounts deposited with the court and the proceeds of the writ of execution pending appeal;
c) directing and ordering defendant-appellant to pay plaintiffs-appellees the amount of Seven Thousand Pesos (P7,000.00) as attorney’s fees and Three Thousand Pesos (P3,000.00) as expenses of litigation; and
d) with costs against the defendant-appellant.
SO ORDERED.[12]
WHEREFORE, the petition is GRANTED. The June 8, 1998 Decision of the RTC is MODIFIED, as follows:Hence, this petition.a) Respondent and all persons and entities whom it authorized to occupy the subject premises and improvements are hereby directed and ordered to vacate the same and deliver possession thereof to petitioners;SO ORDERED.[21]
b) Respondent is directed and ordered to pay petitioners the amount of Thirty[-]two Thousand Two Hundred Seventeen pesos and 50/100 (P32,217.50) per month as reasonable rent starting from December 16, 1991 until respondent and all persons and entities whom it authorized to occupy the premises and improvements shall have vacated the same;
c) Respondent is ordered to pay the amount of Twenty Thousand Pesos (P20,000.00) as attorney’s fees and Three Thousand Pesos (P3,000.00) as expenses of litigation; and
d) Respondent is ordered to pay the costs.
Sec. 2. Time for filing; extension. - The petition shall be filed within fifteen (15) days from notice of the judgment or final order or resolution appealed from, or of the denial of the petitioner’s motion for new trial or reconsideration filed in due time after notice of the judgment. On motion duly filed and served, with full payment of the docket and other lawful fees and the deposit for costs before the expiration of the reglementary period, the Supreme Court may for justifiable reasons grant an extension of thirty (30) days only within which to file the petition.The records reveal that petitioner received the assailed decision of the CA on June 9, 2003. It filed its Ex Parte Motion for Extension of Time to File Petition for Review on Certiorari with this Court on June 23, 2003. The rollo of this case shows that the Docket-Receiving Section, Docket Division of the Judicial Records Office of this Court received payment of docket and other lawful fees and deposit from petitioner, through its counsel Atty. E.U. Guyot, on the same day that the motion was filed. This is sufficient compliance with the law. Nowhere in the cited provision is it required that proof of payment be attached to the Motion for Extension served on the opposing party.
All pleadings, motions and papers filed in court, whether personally or by mail, which do not bear counsel's Roll of Attorneys Number as herein required may not be acted upon by the court, without prejudice to whatever disciplinary action the court may take against the erring counsel who shall likewise be required to comply with the requirement within five (5) days from notice. Failure to comply with such requirement shall be a ground for further disciplinary sanction and for contempt of court.We imposed such requirement "to protect the public by making it easier to detect impostors who represent themselves as members of the Bar" and "to help lawyers keep track of their Roll of Attorneys Number." It was not meant to be a ground to dismiss an action, expunge from the records or refuse inclusion from the records of any pleading in which such Roll of Attorneys Number is lacking. Aside from the disciplinary sanctions that may be imposed against the erring counsel, failure of counsel to indicate his Roll of Attorneys Number is a ground for the court not to act on the pleading, motion, or paper filed in court, until such information is supplied. In the case at bar, petitioner's counsel through an Ex Parte Manifestation dated August 14, 2003, informed the Court of his Roll of Attorneys Number, copy furnished counsel for respondents.[25] We noted this manifestation in our Resolution dated September 1, 2003.[26]
First, the old rate did not reflect the fair value of the subject premises. It was kept artificially low as a concession to respondent which undertook to introduce improvements into the property, ownership of which would automatically accrue to petitioners at the end of the term of the lease.The CA rightly adopted the decision of the MTCC after finding no sufficient reason for the RTC to reduce the monthly rental from P32,217.50 to P14,000.00.
Second, while the new lease shall cover a reduced area of 9,205 square meters only, a higher rate is still justified because the new lease will affect not only the land but also 35 units of buildings and houses, ownership of which, as provided in the lease contract, automatically accrued to them at the end of the term of the lease. These structures include buildings used for commercial and industrial purposes and residential houses. Based on the tax declarations covering the land and improvements, the total market value thereof is over six million pesos.
Third, the new rate is equivalent to PhP3.50 per square meter. This is the prevailing rental rate in the nearby Municipality of Cabadbaran. On the other hand, the subject premises are located in Butuan City where rental rates are definitely higher. The rate in Cabadbaran is being applied to the subject premises only as a concession to respondent.
Finally, inflation has diminished the value of rental payments on the subject premises. It would appear that respondent, through its predecessor-in-interest, first leased the premises in 1973 at only Php0.03 per square meter. The lease was renewed many times over but always at concession rates on account of the close ties between the parties.[34] (citations omitted)
x x x Only the forces of supply and demand can shape the property market. If there is much demand for a piece of property, there is nothing to stop the owner from recovering its acquisition cost and make a profit all in one day. The business practice invoked by the RTC by judicial notice is too uncommon and dubious to be the basis for its computation of the reasonable rent.[37]Third, even if there was such a practice, the RTC's computation would still be erroneous. As the CA demonstrated:
x x x [I]f the reasonable rent is to be derived by spreading the acquisition cost of the properties over a period of ten years beginning 1996, then the amount would be approximately PhP49,761.00, not just PhP32,217.50. This is because the total market value of the land and improvements is PhP6,290,700.00 based on the 1996 tax declarations covering the properties.[38]Fourth, the reliance on Maghuyop's affidavit is also unconvincing. The following pieces of evidence contradict Maghuyop's testimony that the leased premises are purely residential and remote, viz: (a) tax declarations marked as Annexes “A,” “C,” “D,” “E,” “G” and “H” to respondents' Partial Motion for Reconsideration filed with the RTC, stating that the key improvements on the premises were used by petitioner for commercial or industrial purposes; and (b) letter of petitioner, through Valentina G. Plaza, dated July 20, 1992, admitting that the leased premises are for the temporary use of its personnel, hence, may be considered commercial and/or industrial-related in use. We agree with the CA that the distance of the leased premises from the center of Butuan City does not detract from its commercial and/or industrial nature as the same serves the needs of its logging business which cannot be conducted at the center of the city.[39]