Fil-Estate Properties v · G.R. 185798

Petitioner: Fil-Estate Properties
Respondent: Spouses Conrado
Citation: G.R. No. 185798
Court: Supreme Court
Division: Second Division
Ponente: Perez, J.
Decided: January 13, 2014

Summary

The Supreme Court affirmed the refund order for respondent spouses who purchased a condominium unit but did not receive the completed property due to construction stoppage. Petitioner developers claimed the 1997 Asian financial crisis excused their non-performance as a fortuitous event. The Court rejected this defense, citing precedent that the financial crisis was not unforeseeable for real estate enterprises engaged in pre-selling. Under P.D. 957 and Civil Code Article 1191, buyers are entitled to rescission and refund when developers fail to complete projects within the prescribed time. The Court modified the interest rate from 12% to 6% per BSP circular, while sustaining awards for moral damages, attorney's fees, and administrative fines for the developers' bad faith breach.

Statutes applied

Civil Code, Art. 1191

Related cases

Other Philippine cases on the same provisions and issues.

Spouses Alexander v. Kodak Philippines G.R. No. 167615
Estelita Villamar v. Balbino Mangaoil G.R. No. 188661
Spouses Fernando v. Continental Airlines G.R. No. 188288
Vicelet Lalicon v. National Housing Authority G.R. No. 185440
Heirs of Sofia Quirong v. Development Bank of the Philippines G.R. No. 173441
Unlad Resources Development Corporation v. Renato P. Dragon G.R. No. 149338
Victoria Ong v. Ernesto Bogñalbal G.R. No. 149140
Visayan Sawmill Company v. The Honorable Court of Appeals G.R. No. 83851

By the Intellegal Editorial Board · January 13, 2014

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