G.R. No. 142037 - SPOUSES EDGARDO AND CECILIA GONZAGA, VS. COURT OF APPEALS AND SPOUSES ALFONSO AND LETICIA ABAGAT.D E C I S I O N - Supreme Court E-Library

Ruling

WHEREFORE, premises considered, it is respectfully prayed before this Honorable Court that judgment be rendered in favor of the plaintiffs Ordering the defendants and all persons claiming rights under them to vacate Lot 11, Block 15 located at 2063 Bagong Sikat Street, Baclaran, Parañaque, Metro Manila and to demolish at their own expense the house constructed thereon; Ordering the defendants: a) to pay P10,000.00 as attorneys fees, plus P500.00 as appearance fee for every court hearing; b) to pay P45,500.00 as compensatory damages representing the unearned rentals on the subject premises from March 1984 to October 1991, and P500.00 as land rental every month thereafter; c) to pay P20,000.00 as exemplary damages; d) to pay the costs of this suit. PLAINTIFFS pray for such other and further reliefs as may deemed (sic) equitable in the premises. [2] In their Answer to the complaint, the petitioners averred that they purchased the house from the Spouses Gregorio for P100,000.00 under a deed of conditional sale with the understanding that Miguel Gregorio would secure an award in their favor over the lot. However, the Spouses Gregorio failed to do so. Thereafter, they and the Spouses Gregorio executed a Deed of Final and Absolute Sale over the property. According to the petitioners, their refusal to vacate the property was justified in view of the Memorandum of Agreement executed between them and the Spouses Gregorio, whereby they agreed to rescind the deeds of conditional sale and final and absolute sale they earlier executed. The said agreement was made in consideration of the refund of the amount of P90,000.00 to take place on or before December 15, 1991, which amount was earlier paid by them to the Spouses Gregorio under the deed of conditional sale. Until then, the petitioners alleged, they had the right to remain in the property. The petitioners prayed that the court render judgment in their favor, thus: 1) Dismissing the complaint for lack of merit; 2) Awarding defendants moral damages in such amount as may be proven during the trial and exemplary damages in such amount as may be awarded by this Honorable Court; 3) Ordering plaintiff to pay the cost of suit. Defendants likewise pray for such other relief just and equitable under the premises. [3] On September 29, 1992, the petitioners filed a motion for leave to file a third-party complaint against the Spouses Gregorio, appending thereto the said third-party complaint. They prayed that judgment be rendered in their favor, thus: WHEREFORE, Third-Party Plaintiffs pray for judgment ordering Third-Party Defendants to indemnify Third-Party Plaintiffs for whatever is adjudged, if any, against the latter in favor of Plaintiffs in the main case now pending with this court. FURTHER, praying for such and other reliefs as may be deemed just and equitable. [4] The petitioners likewise appended a copy of the deed of conditional sale executed between them and the third-party defendants which contained the