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GOLDEN HORIZON REALTY CORPORATION v. SY CHUAN

FACTS:

National Development Corporation (NDC) leased a portion of its land known as the NDC Compound to the petitioner. The lease was for a period of ten years, renewable for another ten years and petitioner was given an option to purchase the property. After the lease expired, NDC refused to renew it, leading petitioner to file a complaint for specific performance. President Aquino then transferred the NDC Compound to the Polytechnic University of the Philippines but the transfer was subject to existing leases. While the case was pending, NDC continued to accept rental payments from petitioner. Petitioner also entered into sublease agreements, including one with private respondent. When the sublease expired, petitioner demanded private respondent to vacate the premises but private respondent refused. Petitioner then filed an ejectment case which was initially decided in its favor but was later reversed by the Regional Trial Court. Petitioner's petition for review was dismissed by the Court of Appeals, prompting this appeal.

ISSUES:

  1. Whether the Court of Appeals erred in allowing the respondent to controvert the title of the petitioner's landlord.

  2. Whether the Court of Appeals erred in holding that the lease contract of the petitioner with NDC had already expired.

  3. Whether the Court of Appeals erred in affirming the judgment of the RTC reversing the decision of the MTC and dismissing the petitioner's complaint for ejectment.

RULING:

  1. The Court of Appeals did not err in allowing the respondent to controvert the title of the petitioner's landlord. It is well-settled that in an ejectment case, the only issue to be resolved is physical or material possession de facto of the premises, independent of any claim of ownership or possession of the realty.

  2. The Court of Appeals erred in holding that the lease contract of the petitioner with NDC had already expired. The fact that NDC refused to renew the lease does not automatically mean that it has expired. The lease contract may still subsist until the issue of renewability is resolved.

  3. The Court of Appeals erred in affirming the judgment of the RTC reversing the decision of the MTC and dismissing the petitioner's complaint for ejectment. The petitioner has the right to file an ejectment case against the respondent, regardless of the status of the lease contract with NDC. Ejectment cases are summary in nature and are designed to provide an expeditious and inexpensive means of protecting actual possession or the right to possession of property.

PRINCIPLES: