- Petitioner
- Spouses Alejandro Manzanilla
- Respondent
- Waterfields Industries Corporation
- Citation
- G.R. No. 177484
- Court
- Supreme Court
- Division
- Second Division
- Ponente
- Del Castillo, J.
- Decided
- July 18, 2014
Summary
This case involves an unlawful detainer action filed by lessors spouses Manzanilla against lessee Waterfields Industries Corporation for non-payment of rent from December 1997 to May 1998. The key issue was whether a rental deposit could be applied to rental payments after the lease contract was amended through the lessee's letter restricting deposit use to utilities and incidental expenses only. The Metropolitan Trial Court and Regional Trial Court ruled in favor of the lessors, finding the amendment valid and ordering ejectment. The Court of Appeals reversed by applying compensation principles, but the Supreme Court ultimately reinstated the trial courts' decisions, emphasizing that the cause of action for unlawful detainer arises from failure to pay rent, and that the lessee was bound by its judicial admission regarding the contract amendment. The decision clarifies the requisites for unlawful detainer actions and the binding nature of judicial admissions in contract disputes.