G.R. No. L-3018

FACTS:
Plaintiff-appellant Higinio Francisco Yunti filed a complaint against defendant-appellee Dy-Yco, a Chinaman, seeking indemnification for: (1) breach of a lease contract, computed at a monthly rate for the unexpired term; (2) damages to the property during the defendant’s occupation; and (3) litigation expenses. The defendant demurred to the complaint on grounds including lack of jurisdiction, pendency of another action (an ejectment case previously decided in a justice of the peace court), failure to state a cause of action, and ambiguity. The Court of First Instance sustained the demurrer and dismissed the complaint. The plaintiff appealed.

ISSUE:
Whether the Court of First Instance erred in sustaining the demurrer and dismissing the complaint for recovery of damages arising from the breach and rescission of a lease contract.

RULING:
Yes, the trial court erred. The order sustaining the demurrer is reversed. The complaint states a valid cause of action distinct from the prior ejectment suit. The ejectment action sought recovery of possession for non-payment of rent. The present action, filed after the lease was terminated by a final judgment in the ejectment case, seeks indemnification for damages and consequences flowing from the breach of contract, as permitted under Articles 1106, 1556, and 1561 of the Civil Code. The causes of action are separable. The complaint’s allegations, if proven, entitle the plaintiff to relief. The case is remanded to the trial court with instructions to require the defendant to answer and to proceed with trial. No costs.