La Jolla v. Court of Appeals

Summary

La Jolla, Inc. sought to eject long-term tenant Pelagia Viray de Aguilar from premises occupied for over 45 years under verbal month-to-month lease. Court of Appeals extended lease for two years under Article 1687 of Civil Code, citing tenant's good payment record and equity considerations. Supreme Court reversed, holding that Article 1687's discretionary power to extend lease applies only when no definite period exists, but month-to-month verbal leases have definite periods expiring each month upon proper demand. The Court emphasized that property owners should not be indefinitely deprived of their property rights. The prolonged litigation itself provided sufficient time for tenant relocation, making formal extension unnecessary and inequitable to the property owner.