- Petitioner
- Guerrero Estate Development Corporation
- Respondent
- Leviste & Guerrero Realty Corporation
- Citation
- G.R. No. 253428
- Court
- Supreme Court
- Division
- Second Division
- Ponente
- Inting, J.
- Decided
- February 16, 2022
Summary
GEDCOR owned land where Conrad Leviste built a warehouse under a 1987 joint venture agreement providing for 45%-55% sharing of rental income. LGRC, formed by Leviste, managed the warehouse and regularly remitted GEDCOR's 45% share until June 2009 when remittances stopped. GEDCOR filed suit seeking period fixing, collection of unremitted rentals, and accounting. During proceedings, GEDCOR moved to deposit contested rental income in court. The RTC granted the motion under its inherent powers, but the CA reversed, finding grave abuse of discretion. The Supreme Court reinstated the RTC order, ruling that deposit orders are extraordinary provisional remedies designed to preserve disputed property in custodia legis pending adjudication. The Court emphasized that such orders are merely preservatory, not prejudgmental, and properly based on judicial admissions regarding the established rental sharing arrangement. This case clarifies the scope of trial courts' inherent powers to issue deposit orders for disputed recurring payments.