Caleon v. Agus Development · G.R. 77365

Petitioner: Caleon
Respondent: Agus Development Corporation
Citation: G.R. No. 77365
Court: Supreme Court
Division: Third Division
Ponente: Bidin, J.
Decided: April 7, 1992

Summary

Rita Caleon leased land from Agus Development Corporation and built an apartment, then sub-leased units without the landowner's consent. The Supreme Court affirmed lower courts' ejectment orders, ruling that apartment lease includes the underlying land lease, making unauthorized subletting a violation of Batas Pambansa Blg. 25. The Court rejected constitutional challenges, holding that BP 25 is valid police power legislation that can modify existing contracts for public welfare. The decision establishes that social justice principles cannot override property owners' rights and that rental regulation laws apply even to pre-existing lease agreements. This case clarifies the scope of lease relationships and validates government regulation of rental markets under police power.

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Adolfo Racaza v. Susana Realty Inc. G.R. No. L-20330
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Felixberto Bulahan v. Juan E. Tuason G.R. No. L-12020
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Melquiades D. Azcuna, Jr. v. Court of Appeals G.R. No. 116665

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Contract of Lease in the Philippines

By the Intellegal Editorial Board · April 7, 1992

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