Spouses Socrates Sy v. Andok'S Litson Corporation

Summary

This case involves the rescission of a lease contract initiated by the lessee Andok's Litson Corporation against lessors Spouses Sy. Despite paying P480,000 in deposits, Andok's could not operate its restaurant business due to the lessor's unpaid MERALCO bills and delays in billboard construction by another tenant. After four unanswered demand letters over eight months, Andok's filed for contract rescission. The case proceeded to default judgment when Sy failed to appear at pre-trial. All three court levels ruled in favor of Andok's, finding that Sy substantially breached her obligation under the Civil Code to maintain the lessee in peaceful enjoyment of the leased premises. The Supreme Court affirmed the rescission and damages award, emphasizing that lessors must guarantee the right they grant to lessees and protect them from disruptions, whether caused by the lessor's own acts or third parties.