Petitioner
Comglasco Corporation/Aguila Glass
Respondent
Santos Car Check Center Corporation
Citation
G.R. No. 202989
Court
Supreme Court
Division
Third Division
Ponente
Reyes, J.
Decided
March 25, 2015

Summary

Comglasco Corporation leased showroom space from Santos Car Check Center Corporation for five years but attempted early termination citing business difficulties from the 1997 Asian financial crisis. When Santos refused, Comglasco vacated and stopped paying rent. Santos sued for breach of contract. The Supreme Court affirmed lower courts' judgment on the pleadings, ruling that Article 1267 of the Civil Code (doctrine of unforeseen events) does not excuse rental payment obligations, which involve prestation 'to give' rather than 'to do.' Since Comglasco entered the lease in 2000 with knowledge of existing business conditions, it assumed the associated risks. The Court upheld awards for unpaid rentals and attorney's fees, emphasizing that judgment on pleadings was appropriate as no genuine factual issues were tendered.

Statutes applied

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By Intellegal Editorial Board · March 25, 2015

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