GR 48128; (October, 1941) (Digest)
G.R. No. 48128 ; October 31, 1941
THE ROMAN CATHOLIC ARCHBISHOP OF MANILA, plaintiff-appellee, vs. A. Q. VER, defendant-appellant.
FACTS
In 1926, defendant A. Q. Ver purchased a building constructed on a lot in Malate, Manila, owned by plaintiff Roman Catholic Archbishop of Manila. Since then, Ver occupied the lot by paying an annual rental of P75.28. In 1933, the plaintiff notified Ver that thereafter he had to pay a monthly rental of P23.62 (P283.44 annually), an increase of about 276 percent. That same year, the City Assessor raised the assessed value of the lot from P2,060 to P2,577, an increase of 25 percent. Ver refused to pay the increased rental, deeming it exorbitant. After failed negotiations to purchase the lot, Ver submitted the matter to court for determination of a reasonable rental. The plaintiff filed an action in the municipal court to eject Ver and recover the increased rental from October 1933. The municipal court ruled for the plaintiff, fixing an annual rental of P120 from October 1, 1933. On appeal, the Court of First Instance rendered judgment for the plaintiff, ordering Ver to vacate and pay a yearly rental of P180 beginning 1934. The Court of Appeals certified the case to the Supreme Court as it involved only questions of law.
ISSUE
1. Whether the annual rental of P180 fixed by the trial court is reasonable.
2. Whether the defendant should be ejected from the land.
RULING
1. On the Reasonableness of the Rental: The Supreme Court held that the reasonable annual rental should be P94.10. The parties stipulated that the plaintiff made no improvements on the land since 1926. The only apparent justification for the plaintiff’s drastic rent increase was the 25 percent increase in the lot’s assessed value. The Court ruled that the rent increase should only be commensurate with the assessment increase, i.e., 25 percent, not 276 percent. Adding 25 percent to the original annual rental of P75.28 results in P94.10.
2. On the Ejectment: The Supreme Court ruled that the defendant should not be ejected. Ver had deposited P840 with the court to cover any rental adjudged due. Since he was willing to pay the reasonable rent, he was not in default or unlawfully detaining the property.
DISPOSITIVE:
The judgment of the trial court was modified. Defendant A. Q. Ver is ordered to pay plaintiff an annual rental of P94.10 beginning January 1, 1934, and is not required to vacate the land. Costs are assessed against the appellee.