Spouses Hayes Velasco v. Mariano Laigo

Summary

This unlawful detainer case involved a lease dispute where lessees claimed their lease was extended until 2025 based on advance rental payments to one of the lessor's heirs. The Supreme Court ruled that while no express extension existed and the heir lacked authority to extend the lease, an implied lease was created under Civil Code Article 1670 when lessors failed to give timely notice to vacate. Since lessees continued occupying for more than 15 days after lease expiration without prior notice from lessors, an implied yearly lease commenced, giving lessees the right to remain until August 31, 2007. The Court dismissed the unlawful detainer case for lack of cause of action at the time of filing, as the implied lease was still subsisting when the complaint was filed on March 6, 2007.