Imperial Insurance v. Simon

PAREDES, J.:

Defendant-appellee was the lessee of the ground floor of a Building at the corner of Nueva and Escolta Streets, Manila, which he used for haberdashery shop, known as "Simon's Haberdashery". He paid P1,800.00 a month as rentals. On September 13, 1961, plaintiff-appellant bought the property from the owner for P340,000.00.

On September 14, 1961, immediately after the sale, the former owner wrote appellee, informing him of the transaction and advising him - As new owners thereof, the said company has expressed, its desire to occupy the whole premises, and has requested me to advise all my tenants of the termination of all my existing monthly lease contracts. In this connection, therefore, I am taking this opportunity of advising you in writing that I am hereby terminating our monthly lease contract of the premises leased by you, effective one month from date hereof. Similarly, on the same date (September 14), the Imperial Insurance informed appellee of the purchase of the property and advising him that as they had new plans for the occupancy of the building, they would appreciate it if appellee could vacate the premises on or before October 14, 1961.

Appellee failed to vacate the premises, so that on October 18, appellant insurance company sent him another letter reiterating, in effect, the previous demand to vacate the premises and at the same time demanding payment of the arrears in the rentals, covering five (5) months. Apparently, Pelagio Simon did not bother about the two letters, which prompted the insurance company to refer the matter to its lawyer. Under date of November 28, 1961 Atty. Amelito Mutuc wrote appellee, wherein he demanded the immediate payment of rentals in arrears amounting to P9,000.00, covering the period from June to October, 1961.

He also stated: Formal notice is hereby made upon you to pay the aforesaid rentals in arrears as well as those that will accrue thereafter, and to vacate the premises five days from receipt hereof, otherwise, much to our regret, we shall be constrained to follow the wishes of our clients and take court action against you without the benefit of any further notice. If you choose to ignore this letter, we shall take your silence as a refusal to settle your just obligations and as an indication that you desire to meet the same through court action. Appellee replied to the above letter on December 9, 1961, the pertinent portions of which read: I was made to understand that the buyer of the building located at the corner of Escolta and Nueva streets, Manila, which is leased to me and subject of our communications, intends to have the same remodelled.

Let me, therefore, make the offer to continue with the lease, paying the buyer's rental at the rate of P2,300.00 a month, or more depending upon the reasonable rate of rental that the premises could demand in its remodelled state, to take effect upon the availability for use of the same after its remodelling. In the meanwhile, I earnestly request that you kindly cause giving me an extension of one (1) year, effective from the date of the alienation and/or sale of the premises in question. ...

. Please do not be apprehensive for damages representing the value of the use and occupation of the premises, because I am ready to pay in two weeks' time the arrears in rental mentioned in your communication, and pay thereafter the monthly rental as its falls due. On December 22, 1961, appellee paid the amount of P9,000.00, covering his arrearages from June to October, 1961.

In the receipt evidencing said payment, the following undertaking appears: This payment is subject to the agreed condition that Mr.

Pelagio B. Simon is still bound to pay the following rentals in favor of IMPERIAL INSURANCE, INC. up to the end of February, 1962, at which time the above-mentioned premises will be vacated by them in favor of IMPERIAL INSURANCE, INC. November, 1961 P1,800.00 December, 1961 P2,300.00 January, 1962 P2,300.00 February, 1962 P2,300.00