CATUNGAL VS. HAO FACTS: On December 28, 1972, the original owner, owner, Aniana Galang, leased a three-storey building situated at Quirino Aenue, !aclaran, "ara#a$ue, %etro %anila, to the !an& o' the "hili((ine )slands *!")+ 'or a (eriod o' about een *1.+ years, to e/(ire on 0une 2, 1983 During the e/istence o' the lease, !") subleased the ground 4oor o' said building to res(ondent Doris 5ao3 On August 26,1986, Galang and res(ondent e/ecuted e/ecuted a contract contract o' lease on the second and third 4oors o' the building3 he lease was 'or a term o' 'our *6+ years commencing on August 1., 1986 and ending on August 1., 19883 On August 1., 198, (eoner s(ouses mesto and %ina :atungal bought the (ro(erty 'rom Aniana Galang3 )no&ing her ;right o' rst re'usal; (ur(ortedly based on the lease contract between her and Aniana Galang, res(ondent led a com(laint 'or Annulment o'
egional rial :ourt *>:+ o' %a&a, %etro %anila3 %eanwhile, the lease agreement between !") and Galang e/(ired3 "eoner s(ouses sent demand le?ers to res(ondent 'or her to acate the building3 he demand le?ers were unheeded by res(ondent causing (eoners to le two com(laints 'or e@ectment he instuon o' the e@ectment cases (rom(ted (rom(ted res(ondent to le an acon 'or in@uncon doc&eted as :iil :ase =o3 9-7.8 o' the >: o' %a&a, %a&a, to sto( the %e: o' "araa$ue 'rom (roceeding (roceeding therewith (ending the se?lement o' the issue o' ownershi( raised in :iil :ase =o3 88-6913 hese two cases 'or annulment o' sale and 'or in@uncon were also consolidated be'ore !ranch o' o' the RTC of Maka which rendered a eci!ion dated Se"te#$er %&' %&&%' (rann( the in)*ncon and ann*++in( the
contract of !a+e $etween Aniana Ga+an( and "eoner! 3 :ourt o' A((eals reersed and set aside the decision o' the >: and the com(laints in :iil :ases =os3 88-691 and 9-7.8 were accordingly accordingly dismissed3 >es(ondent eleated the aboe decision o' the :A be'ore this :ourt3 <:, howeer, denied res(ondentBs (eon on A(ril 1, 1993 he %e: o' "ara#a$ue, aer the reersal reersal o' the decision in :iil :ase =o39-7.8 'or in@uncon, (roceeded (roceeded with the trial o' the e@ectment cases3 MeTC,! eci!ion: -N V-/ OF TH FORGO-NG' )*d(#ent i! here$0 rendered orderin( the defendant ori! T T.. Hao who i! in act*a+ "o!!e!!ion of
the "ro"ert0 and a++ "er!on! c+ai#in( ri(ht! *nder her to 1acate the "re#i!e! in 2*e!on and to "a0 the "+ain3! the a#o*nt of 456'666.66 a #onth fro# 7*ne 58' %&88' *n+ !he 9na++0 1acate! the "re#i!e! and to "a0 aorne0;! fee! of 456'666.66. /ith co!t! a(ain!t the defendant. "eoners "eoners led a moon 'or claricatory or amended @udgment on the ground that although %e: ; ordered the de'endant to acate the enre sub@ect (ro(erty, it only awarded rent or com(ensaon 'or the use o' said (ro(erty and a?orneyBs 'ees 'or said ground 4oor and not the enre sub@ect (ro(erty3 (ro(erty3 :om(ensaon 'or the use o' the sub@ect (ro(ertyBs second and third 4oors and a?orneyBs 'ees as (rayed 'or in :iil :ase =o3 777 were not awarded3; MeTC: the Decision o' this :ourt is hereby claried in such a way that the dis(osie (oron would read as 'ollowsC ;)= )E OF 5 FO>GO)=G, @udgment is hereby rendered ordering the de'endant Doris 3 5ao who is in actual (ossession o' the (ro(erty and all (ersons claiming rights under her to acate the (remises and to (ay the (lains the amount o' "833 a month in :iil :ase =o3 7 'or the use and occu(ancy o' the rst 4oor o' the (remises in $ueson 'rom 0une 283 1998 unl she nally acates the (remises and to (ay the (lain a rental o' ".,3 a month in :iil :ase =o3 77 'rom 0une 28 1988, unl she nally acates the (remises and to (ay a?orneyBs 'ees o' "2,33 Eith costs against de'endant3 "eoners sought reconsideraon o' the aboe order, (raying that res(ondent be ordered to (ay "2,3 monthly 'or the use and occu(ancy o' the ground 4oor and "1,3 each monthly 'or the second and third 4oors >es(ondent, on the other hand, led a noce o' a((eal3 On %ay 7, 1997, the %e: o' "ara#a$ue issued an Order, eleang the case to the >egional rial :ourt, >: ruled in 'aor o' the "eoner3 >es(ondent led a moon 'or reconsideraon3 )t was denied by >:3 :A modied the decision o' >: reducing monthly rental rental 'rom 2, to 1, 'or $oth the 2nd and rd 4oors3 Alll other as(ects were aHrmed3 he (ares led their res(ece moons 'or reconsideraon to the :ourt o' A((eals3 "eoners as&ed that the decision o' the >egional rial :ourt /ing the total monthly rentals at "6,3 be sustained3 On the other hand, res(ondent sought a reial o' the decision o' the %e: on the ground that since (eoners did not inter(ose an
a((eal 'rom the amended @udgment o' the %e:, the >: could not alidly increase the amount o' rentals awarded by the 'ormer3 he :ourt o' A((eals resoled the (aresB moons 'or reconsideraon in 'aor o' the res(ondent3 )t ruled that the moon 'or reconsideraon led by the (eoners be'ore the %e: was a (rohibited (leading under the >ules o'
fro# 456'666.66 to 48'666.66 and for the !econd and third =oor! fro# 4%6 '666.66 each to 4>'666.66 for $oth =oor!. /ith thi! #odi9caon the )*d(#ent $e+ow i! AFF-RM in a++ other re!"ect!. -SSU: /FO>, (remises considered, @udgment is hereby rendered in 'aor o' (eoners by >)=<A)=G the decision o' the >:, with modicaons, and ordering res(ondent to 'urther "AIC 13 he sum o' wenty egional rial :ourt and the "1,3 awarded by the %etro(olitan rial :ourt, as monthly arrears, com(uted 'rom res(ondentBs unlaw'ul detainer, 2 0une 1988 *'or the ground 4oor+ and 1. August 1988 *'or the second and third 4oors+ o' the sub@ect (ro(erty unl the me she acated the (remises on 7 0anuary 1998J 23 Kegal interest o' twele (ercent *12L+ (er annum on the 'oregoing sum 'rom the date o' noce o' demand on 27
HL: S. )n astern
Ehen the obligaon is breached, and it consists in the (ayment o' a sum o' money, i3e3, a loan or 'orbearance o' money, the interest due should be that which may hae been s(ulated in wring3 Furthermore, the interest due shall itsel' earn legal interest 'rom the me it is @udicially demanded3 )n the absence o' s(ulaon, the rate o' interest shall be 12L (er annum to be com(uted 'rom de'ault, i3e3, 'rom @udicial or e/tra@udicial demand under and sub@ect to the (roisions o' Arcle 119 o' the :iil :ode3
he bac& rentals in this case being e$uialent to a loan or 'orbearance o' money, the interest due thereon in twele (ercent *12L+ (er annum 'rom the me o' e/tra-@udicial demand on
