Guevent Industrial Development Corporation v. Philippine Lexus Amusement Corporation

Summary

This civil case involves a lease contract dispute where respondent lessee sought damages from petitioner lessor for flood damage to video machines. The Supreme Court reversed the Court of Appeals and reinstated the trial court's dismissal, finding that the flooding was primarily caused by poor public drainage rather than the lessor's private drainage system. The Court emphasized that a lessor cannot be held liable for maintaining public infrastructure, as this would constitute an impossible contractual obligation under Civil Code Art. 1348. The decision establishes important precedent regarding the scope of a lessor's maintenance obligations under lease contracts and the distinction between private and public infrastructure responsibilities. The case demonstrates how contractual liability is limited by the principle that impossible services cannot be the object of contracts.