The Bacolod-Murcia Milling Co. v. Banco Nacional Filipino

Summary

The Bacolod-Murcia Milling Co. sued Philippine National Bank and Fernando F. Gonzaga to compel sale of 12 hectares from Hacienda Helvetia at P300 per hectare, claiming contractual right under 1920 milling agreement. The milling contract provided that planters would facilitate land sales to the Central at P300 per hectare for operational purposes like experimental stations and warehouses. However, the Supreme Court found that the Central had already accomplished the enterprises contemplated in the original contract after 16+ years of operation, and the plaintiff sought the land primarily for a golf course and additional laborers' houses rather than for the purposes specified in the contract. The Court applied strict contract interpretation principles, holding that the contractual provision could not be extended to cover new purposes not originally intended by the parties. The decision emphasized that specific performance requires adherence to original contract terms without judicial alteration.