Remington Industrial Sales Corporation vs.

Chinese Young Men’s Christian Association of the

Phil. Islands
G.R. No. 171858. January 22, 2007
YNARES-SANTIAGO, J.:
Facts:
Petitioner Remington Industrial Sales Corporation leased Units 964 and 966 on the
ground floor and Unit 963 on the second floor of a building owned by respondent Manila
Downtown YMCA and knocked down the partitions between the ground floor units and used the
combined areas as its office, hardware store, and display shop for steel products. The combined
units also served as a passageway to Unit 963, which in turn was utilized as petitioner’s staff
room. However, upon disagreement, petitioner sued for the fixing of period of lease over the
second floor unit while respondent filed an action to evict petitioner which was consolidated.
Petitioner filed for the consignation of monthly rentals which later filed for formal surrender of
the two ground floor units. In the consolidated case, MeTC dismissed the ejectment case and
extended the period of lease over unit 963 for three years. However, there was no direct access to
the road except for the ground floor units which the court granted petitioner a longer extension of
5 years and ordred respondent to provide for a two-meter passageway between units 964 and
966. Upon appeal, CA found that although the lease contract had expired, petitioner’s continued
occupation of Unit 963 resulted to a new lease on a month-to-month basis which subsisted for
over a year. Respondent, then, filed for two separate actions for ejectment which the MeTC
granted but was reversed by RTC. Upon appeal, CA reversed and set aside the decisions and
denied the motion for reconsideration. Thus, this petition.
Issue:
Whether or not RISC’s formal surrender on July 1, 1998 of the ground floor units, coupled with
YMCA’s subsequent acts, constitutes effective surrender of those units?
Rule of law:
Art 1643 and 1665 of the NCC
Application:
In a contract of lease, one of the parties binds himself to give to another the enjoyment or
use of a thing for a price certain, and for a period which may be definite or indefinite. Upon its
termination, the lessee shall return the thing leased and the lessor shall resume possession
thereto. Petitioner’s “Formal Surrender of Leased Premises” on July 1, 1998 showed its intention
to relinquish in favor of respondent its possession over Units 964 and 966. The filing of the same
at MeTC-Manila, Branch 24 constitutes petitioner’s constructive delivery of the said premises
effective July 1, 1998. Thereafter, petitioner actually emptied and vacated the premises.
Therefore, from July 1, 1998, respondent could have taken legal and actual possession of Units
964 and 966. Respondent could have easily removed the padlock and occupied the premises in
view of petitioner’s unconditional surrender of the premises.
Conclusion:
WHEREFORE, the instant petition is GRANTED. The Decision and Resolution of CA
are SET ASIDE and the Decision of the RTC dismissing the unlawful detainer case for lack of
merit, is hereby REINSTATED and AFFIRMED.