- Petitioner
- Pedro T. Bercero
- Respondent
- Capitol Development Corporation
- Citation
- G.R. No. 154765
- Court
- Supreme Court
- Division
- Third Division
- Ponente
- Austria-Martinez, J.
- Decided
- March 29, 2007
Summary
Pedro Bercero sued Capitol Development Corporation for breach of lease contract and damages after being evicted from commercial premises. Capitol had leased its building to R.C. Nicolas (1983-1993), who subleased to Bercero. When R.C. Nicolas defaulted, Capitol filed ejectment but simultaneously entered into direct lease contracts with sub-lessees including Bercero through compromise settlement. Despite having valid lease with Capitol until August 1991, Bercero was evicted in November 1990 by R.C. Nicolas. The RTC initially awarded damages to Bercero, but the CA and Supreme Court reversed, holding that Bercero's lease contract with Capitol was void because Capitol could not grant leasehold rights it had already granted to R.C. Nicolas. The Supreme Court emphasized that respondent's unilateral rescission of its contract with R.C. Nicolas during pending litigation was unlawful, making the subsequent contract with petitioner void for having inexistent cause. Both parties were deemed in pari delicto.