- Petitioner
- Manila International Airport Authority
- Respondent
- Ding Velayo Sports Center
- Citation
- G.R. No. 161718
- Court
- Supreme Court
- Division
- First Division
- Ponente
- Leonardo-De Castro, J.
- Decided
- December 14, 2011
Summary
This case involves a lease renewal dispute between Manila International Airport Authority (MIAA) and Ding Velayo Sports Center over airport property. Under their 1976 lease contract, respondent had the sole option to renew for another 25 years. When the lease expired in 1992, respondent properly exercised its renewal option, but MIAA refused and demanded vacation. The Supreme Court affirmed lower courts' rulings that the unilateral renewal option was valid and binding on MIAA. The Court applied contract interpretation principles favoring the lessee in cases of uncertainty and held that renewal should be under the same terms as the original contract. MIAA's claims of contract violations and estoppel were rejected. The decision reinforces the binding nature of lease renewal options and protects lessees' vested contractual rights against arbitrary denial by lessors.