Ofelia D. Cruz v. Children'S Medical Center Philippines

Summary

This case involves a lease contract dispute between Cruz (lessee) and Children's Medical Center (lessor) over a canteen space. Cruz failed to pay approximately P775,000 in rent and utilities, prompting the hospital to demand vacation and payment. When Cruz didn't comply, the hospital forcibly ejected her without court order and operated the canteen using her equipment. The Supreme Court affirmed the Court of Appeals' finding that both parties breached the contract - Cruz by non-payment and the hospital by unlawful ejectment. The final judgment required Cruz to pay her outstanding obligations while awarding her moral damages for the wrongful ejectment. The case demonstrates the principle that contractual breaches by both parties don't negate respective liabilities, and that self-help remedies without judicial process constitute separate breaches regardless of the other party's default.