Rudy Lao v. Jaime Lao

Summary

This case involved an unlawful detainer action filed by property purchaser Rudy Lao against Jaime Lao, who occupied property as manager of his mother Anita Lao's business. Anita Lao had a valid lease agreement with the former owner. The lower courts initially ruled in favor of Rudy Lao, but the Court of Appeals and Supreme Court reversed, holding that the proper defendant should have been Anita Lao, the actual lessee, not her son who was merely acting as her agent/manager. The Supreme Court emphasized that in ejectment cases, the real party-in-interest as defendant is the person with the legal right to possess, not necessarily the physical occupant. The decision reinforced that unregistered lease agreements remain binding between parties and that purchasers take property subject to existing lease obligations they have knowledge of.