Fil-Estate Properties v · G.R. 165164

Petitioner: Fil-Estate Properties
Respondent: Spouses Gonzalo
Citation: G.R. No. 165164
Court: Supreme Court
Division: Second Division
Ponente: Quisumbing, J.
Decided: August 17, 2007

Summary

Supreme Court case involving real estate developer Fil-Estate Properties' failure to complete a condominium project contracted with spouses Go in 1995. When the developer failed to develop the project, buyers demanded refund in 1999. Developer claimed the 1997 Asian financial crisis was a fortuitous event excusing performance. The Supreme Court rejected this defense, ruling that currency fluctuations are foreseeable everyday occurrences for real estate enterprises, not fortuitous events under Civil Code Article 1174. The Court affirmed buyers' right to refund under PD 957 Section 23, ordering reimbursement of P3,439,000.07 with 6% interest from demand date and P100,000 attorney's fees. The decision reinforced that economic crises generally do not constitute valid excuses for contractual non-performance in commercial real estate transactions.

Statutes applied

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By Intellegal Editorial Board · August 17, 2007

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