Petitioner
Ensons Commercial Corporation
Respondent
Philippine National Railways
Citation
G.R. No. 227648
Court
Supreme Court
Division
First Division
Decided
December 9, 2020

Summary

Ensons Commercial Corporation leased PNR property in Pandacan, Manila from 1988-2008, constructing a P5M warehouse. In 1997, alleged informal settlers blocked access roads, prompting Ensons to suspend rental payments and demand PNR clear the premises. When PNR refused, Ensons sued for specific performance. The RTC and CA ruled against Ensons, finding insufficient evidence of informal settlers or breach of contract. The Supreme Court denied Ensons' certiorari petition, ruling it used the wrong procedural remedy and that lower courts correctly applied Civil Code provisions on lease obligations. The Court clarified that lessors must maintain peaceful legal possession, not physical possession, and that mere third-party trespass doesn't violate lessor obligations. Ensons was ordered to pay back rentals totaling P2,862,352.22 plus continuing rent and interest.

Statutes applied

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By Intellegal Editorial Board · December 9, 2020

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