G.R. No. 128058 - MARGUERITE J. LHUILLIER, VS. THE HON. COURT OF APPEALS, HON. MEINRADO P. PAREDES, HON. MARIO V. MANAYON, SHERIFF EDILBERTO R. SUARIN AND CEBU MARIJOY REALTY CORP..R E S O L U T I O N - Supreme Court E-Library

Ruling

WHEREFORE, judgment is rendered in favor of plaintiff [Marijoy Realty] as against defendant [Marguerite Lhuillier], ordering the latter: To vacate the premises and to surrender to plaintiff the possession thereof; To pay unto plaintiff rentals in arrears starting from the month of March, 1994 and succeeding months thereafter until the premises is fully vacated at the rate of Php 10,000.00 per month; To pay unto plaintiff the sum of Php 10,000.00 as attorney's fees; Plaintiff at her option shall pay defendant the sum of Php 300,000.00 representing one-half (1/2) the value of improvements introduced by defendant. Should plaintiff refuse to reimburse said amount, defendant shall remove the improvements, even though the principal thing may suffer damage thereby. Defendant shall not, however, cause any more impairment upon the property leased than is necessary. Defendant to pay the costs of suit. [4] Both petitioner and respondent appealed to the Regional Trial Court of Cebu, Branch 13, which on September 14, 1995 disposed of the case, thus: WHEREFORE, judgment is hereby rendered AFFIRMING the Decision of the lower court ordering the defendant to vacate the premises and to surrender to plaintiff the possession thereof with the following modifications: (1) Defendant is directed to pay plaintiff rentals in arrears starting March 1994 and succeeding months thereafter until the premises is fully vacated at the rate of Php 28,000.00 per month; (2) Elimination of Php 10,000.00 attorney's fees to the plaintiff; (3) Elimination of the order giving plaintiff option to pay Php 300,000.00 or for the defendant to remove the improvements. Without special pronouncement as to costs. [5] On February 14, 1996, petitioner filed a petition for review with the Court of Appeals. On March 6, 1996, the parties submitted for approval a partial compromise agreement, which provided, among others, that petitioner would surrender possession of the property on March 31, 1996 and pay private respondent her unpaid balance of P50,260.00. Parties agreed that the only unresolved issues were the monthly rentals and whether petitioner was entitled to 1/2 of the value of the improvements introduced on the leased premises. At the July 8, 1996 hearing, the parties agreed on the monthly rent of P28,000.00. On October 4, 1996, the Court of Appeals rendered the challenged decision that reads: WHEREFORE, the petition is DISMISSED. The improvements introduced by petitioner Marguerite Lhuillier in the leased premises are hereby declared to be the exclusive property of respondent Cebu Marijoy Realty Corporation. No costs. [6] On November 24, 1992, petitioner filed a motion for reconsideration, which was denied in a resolution dated January 17, 1997. [7] Hence this petition for review, wherein petitioner avers that the Court of Appeals has: I.... DECIDED THE CASE BELOW NOT IN ACCORDANCE WITH LAW WHEN IT UPHELD THE PREVIOUS LEASE CONTRACT WHICH PROVIDES THAT IMPROVEMENTS SHALL BELONG TO THE LESSOR