Araos vs. CA

Araos, et. al. vs. CA and Jovan Land, Inc.
G.R. No. 107057 June 2, 1994
Petition for review on certiorari seeking the reversal of the CA’s decision
DAVIDE, J.:

Facts: Petitioners are lessees of a 10-door apartment building which they have been occupying for 25 years. The building was originally owned by Bernardino. After the expiration of the lease contract (31 Jan ’88) between the petitioners and Bernardino, the petitioners, nevertheless occupied their respective units and the lessor continued to collect monthly rentals from the petitioners despite the absence of a written contract. On 11 July 1991, the apartment was sold to Jovan Land, Inc. Three days after, demands to vacate the apartment units were made simultaneously by Bernardino and Jovan Land. When the demands went unheeded, cases for unlawful detainer were files against petitioners before the MeTC Manila. The MeTC ordered defendants to vacate the premises and to pay the increased Rental Arrearages and attorney’s fees. On appeal, RTC reversed the decision of the MeTC. CA reversed RTC and affirmed the MeTC decision.

Issue: WON actual damages include the increased rate in rentals.

Ruling: Petition is partly Granted and CA decision modified by setting aside the increase in rentals fixed therein and ordered petitioners to pay the accumulated rentals until they shall have effectively vacated the leased premises.

There is no basis for the increase in the rentals. The rule is settled that in forcible entry or unlawful detainer cases, the only damage that can be recovered is the fair rental value or the reasonable compensation for the use and occupation of the leased property. The reason for this is that in such cases, the only issue raised in ejectment cases is that of rightful possession; hence, the damages which could be recovered are those which the plaintiff could have sustained as a mere possessor, or those caused by the loss of the use and occupation of the property, and not the damages which he may have suffered but which have no direct relation to his loss of material possession.
*DAN’Q