Romago Electric Co. v. Court of Appeals

Summary

Romago Electric Co., Inc. sued Toyota Shaw, Inc. for P107,068.28 representing alleged shared rental and utilities expenses during joint occupancy of leased premises from February to May 1989. Romago claimed a verbal agreement existed for equal cost-sharing, supported by testimonies of its officers. The Regional Trial Court found in favor of Romago, ruling that a valid oral agreement existed despite lack of written documentation. However, the Court of Appeals reversed, finding no credible evidence of such agreement and noting that both parties had already paid equally for their respective periods of occupancy. The Supreme Court affirmed the appellate court's decision, emphasizing that testimonial evidence cannot prevail over documentary evidence and that no meeting of minds was established. The Court ruled that TSI's early occupancy was part of incentives offered in the stock purchase negotiations, not evidence of a separate rental sharing agreement.