Malayan Realty v. Uy Han Yong

Summary

This case involves a long-term landlord-tenant dispute where Malayan Realty sought to eject Uy Han Yong from an apartment unit after 43 years of occupancy under a verbal lease. Despite receiving proper notice of lease termination, Uy refused to vacate. The lower courts initially favored the tenant, with the RTC extending the lease for five years under Article 1687 of the Civil Code, which allows courts to fix longer lease terms for tenants occupying premises over one year. The Court of Appeals shortened this to one year and imposed rental increases. The Supreme Court ultimately ruled that Uy's continued possession for over five years since the complaint was filed constituted sufficient extension, ordering immediate vacation while upholding graduated rental increases of 10% per annum from the lease expiration date. The decision balances tenant protection with property owner rights under Civil Code provisions.