- Petitioner
- Martha R. Horrigan
- Respondent
- Troika Commercial
- Citation
- G.R. No. 148411
- Court
- Supreme Court
- Division
- Third Division
- Ponente
- Sandoval-Gutierrez, J.
- Decided
- November 29, 2005
Summary
This Supreme Court case involves interpretation of a sub-lease contract clause regarding rental increases. Martha Horrigan sub-leased restaurant space from Troika Commercial, Inc. under a 1983 contract providing for base rental plus additional rental with '10% guaranteed yearly increase.' The parties disputed whether this increase applied to both rental components or only the additional amount. The Supreme Court applied Civil Code Article 1377, ruling that contract ambiguities must be construed against the party who caused them. Since Horrigan's husband prepared the contract, the ambiguous clause was interpreted against her and in favor of the lessor Troika. The Court affirmed lower court decisions ordering Horrigan to pay P318,489.00 in unpaid rental adjustments with 12% annual interest, establishing important precedent for contract interpretation principles in lease agreements.