Sunday, September 21, 2014

Fernandez vs. Court of Appeals GR No. L-80231. October 18, 1988 case digest



Concept: 1370
Facts:
·         The controversy here revolves around the appropriate reading of a clause in a lease contract that was executed about fifteen years ago.
·         July 31, 1973. Miguel Tajangco (respondent and lessor) and Celso Fernandez (petitioner and lessee) entered into a ten-year Contract of Lease over a piece of land situated along Kahilum Street, Pandacan, Manila, where Fernandez would put up the then proposed New Zamora Market. The parties agreed that the lease, which was scheduled to end on 1 July 1983, would be "renewable for another ten (10) years at the option of both parties under such terms, conditions and rental reasonable at that time" and that, upon expiration of the lease, whatever improvements were then existing thereon should automatically belong to Miguel without having to pay Fernandez.
·         Before the term ended, asshole Miguel said to Fernandez that he is no longer willing to renew the contract. Fernandez being a hardass, replied that he wants to renew the contract so he could recover the expenses he had made. Miguel not giving in, replied through his lawyer, advised that Miguel could not accept Fernandez's unilateral action to renew the lease because, under the contract, any renewal or extension thereof was possible only "at the option of both parties.
·         June 12, 1983. Fernandez filed an action against Miguel. He said that he was entitled to renew the lease contract, under paragraph 3 Section 2 thereof, for another ten (10) years, which paragraph in the contract should be construed in a liberal manner and with justice. In his prayer, he sought to compel Miguel to renew the lease agreement for another term, or asked the court to consider the original contract as renewed for another ten (10) years or to fix another period for the renewal contract.
·         Miguel the asshole replied that judicial interpretation is not needed, the contract is so simple worded that even Homer Simpson can understand it.
·         The trial court held its decision in favor of Fernandez. Miguel, being an asshole and won’t accept defeat, appealed with the CA. The CA reversed the decision of the trial court. BOOM! HEIRARCHY YOW!

Issue:  W/ON the condition of the contract is clear or not.

Held: Shit is clear. The CA said that the contract language as comprising, not technical terms or terms of legal art, but rather just plain and ordinary words. SC affirmed the decision of the CA

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