- Petitioner
- Republic of the Philippines
- Respondent
- Great Riverland Development Corporation
- Citation
- G.R. No. 218455
- Court
- Supreme Court
- Division
- Second Division
- Decided
- November 29, 2021
Summary
The Supreme Court denied PMO's petition challenging rental payment obligations for security paper equipment stored in sold property. PMO sold MENDECO Compound to GRDC but failed to deliver complete possession due to security paper equipment remaining in Pulp and Decorticating Mill Building. The Court applied unjust enrichment principles under Article 22 of the Civil Code, ruling PMO would be unjustly enriched using GRDC's property without compensation. The 'as-is, where-is' sale clause was held to pertain only to physical condition, not legal obligations to deliver complete possession. PMO incurred delay under Articles 1169-1170 when it failed to respond to GRDC's valid demand. The Court modified rental rate to P32,567.40 monthly based on PMO's pleading admissions and appraisal evidence. Sobros was not held liable as no actual delivery of equipment occurred since PMO lacked possession. The decision reinforces contractual delivery obligations and unjust enrichment principles in property sales.