Republic of the Philippines
SUPREME COURT
Manila
THIRD DIVISION
G.R. No. 129103 September 3, 1999
CLAUDIO DELOS REYES and LYDIA DELOS REYES, petitioners,
vs.
THE HON. COURT OF APPEALS and DALUYONG GABRIEL, substituted by his heirs, namely:
MARIA LUISA G. ESTEBAN, MARIA RITA G. BARTOLOME & RENATO GABRIEL, respondents.
GONZAGA-REYES, J.:
In this petition for review on certiorari, petitioners seek to set aside the
Decision 1 of the Court of Appeals 2 in CA-G.R. CV No. 36955 reversing the
consolidated Decision 3 of the Regional Trial Court, Branch I, Tagum, Davao del
Norte in Civil Case Nos. 2326 and 2327.
This petition was originally filed with the Court on June 16, 1997. In a Resolution
(of the Third Division) dated October 13, 1997, 4 the petition was denied for
failure to show that the respondent Court of Appeals committed any reversible
error. However, the motion for reconsideration filed by petitioners on November 14,
1997 was granted by the Court in its Resolution dated December 03, 1997 5 and the
petition was reinstated.
The antecedents are:
1. Private respondent Daluyong Gabriel, (who died on September 14, 1995 and was
substituted herein by his children RENATO GABRIEL, MARIA LUISA B. ESTEBAN and MARIA
RITA G. BARTOLOME) was the registered owner under Transfer Certificate of Title No.
T-17932 of the Registry of Deeds of Tagum, Davao del Norte of a 5,010 square meter
parcel of land situated in Barrio Magugpo, Tagum, Davao del Norte, 6 having
acquired the same by hereditary succession sometime in 1974 as one of the children
and heirs of the late Maximo Gabriel.
2. Because Daluyong Gabriel together with his family was then residing in
Mandaluyong, Metro Manila, his sister Maria Rita Gabriel de Rey acted as
administratrix of the said parcel of land and took charge of collecting the rentals
for those portions which have been leased to certain tenants/lessees. One of these
lessees is LYDIA DE LOS REYES who by virtue of a Contract of Lease executed on June
21, 1985 by and between Maria Rita G. de Rey as lessor and Lydia de los Reyes as
lessee, leased a portion of One Hundred Seventy Six (176) square meters for a term
of one year beginning June 15, 1985 renewable upon agreement of the parties at the
rental rate of Two Hundred (P200.00) pesos, per month. 7
3. Sometime in 1985 Daluyong Gabriel sent his son Renato Gabriel to Tagum
reportedly with instructions to take over from Maria Rita G. de Rey as
administrator of the said parcel of land. Upon agreement of the parties, the June
21, 1985 Contract of Lease covering the one hundred seventy-six square meter
portion of land was novated and replaced by a Contract of Lease executed on
September 26, 1985 by and between RENATO GABRIEL as Lessor and Lydia de los Reyes
as Lessee. 8 The term of the lease was changed to six (6) years from and after June
15, 1985 or up to June 15, 1991; receipt of the payment in advance of the total
rental amount of Fourteen Thousand Four Hundred (P14,400.00) Pesos was acknowledged
by Lessor Renato Gabriel.
4. Sometime in November 1987, during the effectivity of the lease contract, Lydia
de los Reyes verbally agreed to buy two hundred fifty (250) square meters
(including the 176 square meters leased by her), and thereafter an additional fifty
(50) square meters or a total of three hundred (300) square meters of Daluyong
Gabriel's registered property, at three hundred pesos (P300.00) per square meter or
for a total amount of P90,000.00. Receipt of the payment of the purchase price made
in several installments by Lydia de los Reyes was acknowledged by Renato Gabriel as
evidenced by official receipts issued and signed by him dated November 25, 1987,
November 26, 1987, January 8, 1988, February 10, 1988, February 15, 1988 and
February 29, 1988 all bearing the letter head "Gabriel Building." No deed of sale
was executed covering the transaction. Purchaser Lydia de los Reyes however
proceeded with the construction of a two-storey commercial building on the said 300
square meter lot after obtaining a building permit from the Engineer's Office in
Tagum.
5. Acting on the information given by his daughter Maria Luisa Gabriel Esteban upon
the latter's return from a trip to Tagum that spouses Claudio and Lydia de los
Reyes were constructing a two-storey building on a portion of his land, Daluyong
Gabriel, through his lawyer, sent a letter on August 30, 1989 to the De los Reyes
couple demanding that they cease and desist from continuing with their construction
and to immediately vacate the premises, asserting that the construction was
unauthorized and that their occupancy of the subject portion was not covered by any
lease agreement.
6. On September 20, 1989, spouses Claudio and Lydia de los Reyes through counsel
sent their letter reply explaining that the De los Reyeses are the innocent party
who entered into the lease agreement and subsequent sale of subject portion of land
in good faith and upon the assurance made by the former administratrix, Maria Rita
G. Rey, her nephew Tony Rey, Mrs. Fe S. Gabriel and Mr. Daluyong Gabriel himself
that Renato Gabriel is the new administrator authorized to enter into such
agreements involving the subject property.
