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    Country Bankers Insurance Corp Vs CA

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    JamesAnthony
    This document summarizes a Supreme Court case from September 9, 1991 regarding a dispute over a lease agreement for three theaters. The key details are: 1) Oscar Ventanilla Enterprises Corporation (OVEC) leased the Avenue, Broadway and Capitol Theaters to Enrique Sy from 1977 to 1983. Sy fell behind on rental payments and amusement taxes. 2) In 1980, OVEC repossessed the theaters due to Sy's defaults but Sy sued, claiming the lease terms were unfair. The trial court sided with OVEC, upholding the repossession and forfeiture of Sy's deposit. 3) The Court of Appeals affirmed the trial court's decision. The Supreme Court document summarizes the

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    © All Rights Reserved
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    Country Bankers Insurance Corp Vs CA

    Uploaded by

    JamesAnthony
    163 views2 pages
    This document summarizes a Supreme Court case from September 9, 1991 regarding a dispute over a lease agreement for three theaters. The key details are: 1) Oscar Ventanilla Enterprises Corporation (OVEC) leased the Avenue, Broadway and Capitol Theaters to Enrique Sy from 1977 to 1983. Sy fell behind on rental payments and amusement taxes. 2) In 1980, OVEC repossessed the theaters due to Sy's defaults but Sy sued, claiming the lease terms were unfair. The trial court sided with OVEC, upholding the repossession and forfeiture of Sy's deposit. 3) The Court of Appeals affirmed the trial court's decision. The Supreme Court document summarizes the

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    Country Bankers Insurance Corp vs CA

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    This document summarizes a Supreme Court case from September 9, 1991 regarding a dispute over a lease agreement for three theaters. The key details are: 1) Oscar Ventanilla Enterprises Corporation (OVEC) leased the Avenue, Broadway and Capitol Theaters to Enrique Sy from 1977 to 1983. Sy fell behind on rental payments and amusement taxes. 2) In 1980, OVEC repossessed the theaters due to Sy's defaults but Sy sued, claiming the lease terms were unfair. The trial court sided with OVEC, upholding the repossession and forfeiture of Sy's deposit. 3) The Court of Appeals affirmed the trial court's decision. The Supreme Court document summarizes the

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    163 views2 pages

    Country Bankers Insurance Corp Vs CA

    Uploaded by

    JamesAnthony
    This document summarizes a Supreme Court case from September 9, 1991 regarding a dispute over a lease agreement for three theaters. The key details are: 1) Oscar Ventanilla Enterprises Corporation (OVEC) leased the Avenue, Broadway and Capitol Theaters to Enrique Sy from 1977 to 1983. Sy fell behind on rental payments and amusement taxes. 2) In 1980, OVEC repossessed the theaters due to Sy's defaults but Sy sued, claiming the lease terms were unfair. The trial court sided with OVEC, upholding the repossession and forfeiture of Sy's deposit. 3) The Court of Appeals affirmed the trial court's decision. The Supreme Court document summarizes the

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    © All Rights Reserved
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    of 2

    7/11/2015

    G.R.No.85161

    TodayisSaturday,July11,2015

    RepublicofthePhilippines
    SUPREMECOURT
    Manila
    FIRSTDIVISION
    G.R.No.85161September9,1991
    COUNTRYBANKERSINSURANCECORPORATIONandENRIQUESY,petitioners,
    vs.
    COURTOFAPPEALSandOSCARVENTANILLAENTERPRISESCORPORATION,respondents.
    EstebanC.Manuelforpetitioners.
    AugustaGatmaytanforOVEC.

    MEDIALDEA,J.:p
    PetitionersseekareviewoncertiorariofthedecisionoftheCourtofAppealsinCAG.R.CVNo.09504"Enrique
    SyandCountryBankersInsuranceCorporationv.OscarVentanillaEnterprisesCorporation"affirmingintotothe
    decisionoftheRegionalTrialCourt,CabanatuanCity,BranchXXV,towit:
    WHEREFORE, the complaint of the plaintiff Enrique F. Sy is dismissed, and on the counterclaim of
    thedefendantO.VentanillaEnterprisesCorporation,judgmentisherebyrendered:
    1. Declaring as lawful, the cancellation and termination of the Lease Agreement (Exh. A) and the
    defendant'sreentryandrepossessionoftheAvenue,BroadwayandCapitoltheatersunderleaseon
    February11,1980
    2. Declaring as lawful, the forfeiture clause under paragraph 12 of the Id Lease Agreement, and
    confirming the forfeiture of the plaintiffs remaining cash deposit of P290,000.00 in favor of the
    defendantthereunder,asofFebruary11,1980
    3.OrderingtheplaintifftopaythedefendantthesumofP289,534.78,representingarrearsinrentals,
    unremitted amounts for amusement tax delinquency and accrued interest thereon, with further
    interest on said amounts at the rate of 12% per annum (per lease agreement) from December 1,
    1980untilthesameisfullypaid
    4. Ordering the plaintiff to pay the defendant the amount of P100,000.00, representing the
    P10,000.00portionofthemonthlyleaserentalwhichwerenotdeductedfromthecashdepositofthe
    plaintifffromFebruarytoNovember,1980,aftertheforfeitureofthesaidcashdepositonFebruary
    11,1980,withinterestthereonattherateof12%perannumoneachofthesaidmonthlyamountsof
    P10,000.00fromthetimethesamebecamedueuntilitispaid
    5.Orderingtheplaintifftopaythedefendantthroughtheinjunctionbond,thesumofP100,000.00,
    representing the P10,000.00 monthly increase in rentals which the defendant failed to realize from
    FebruarytoNovember1980resultfromtheinjunction,withlegalinterestthereonfromthefinalityof
    thisdecisionuntilfullypaid
    6.Orderingtheplaintifftopaytothedefendantthesumequivalenttotenpercentum(10%)ofthe
    abovementioned amounts of P289,534.78, P100,000.00 and P100,000.00, as and for attorney's
    feesand
    7.Orderingtheplaintifftopaythecosts.(pp.9495,Rollo)
    Theantecedentfactsofthecaseareasfollows:
    Respondent Oscar Ventanilla Enterprises Corporation (OVEC), as lessor, and the petitioner Enrique F. Sy, as
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    7/11/2015

    G.R.No.85161

    lessee,enteredintoaleaseagreementovertheAvenue,BroadwayandCapitolTheatersandthelandonwhich
    theyaresituatedinCabanatuanCity,includingtheirairconditioningsystems,projectorsandaccessoriesneeded
    forshowingthefilmsormotionpictures.Thetermoftheleasewasforsix(6)yearscommencingfromJune13,
    1977andendingJune12,1983.Aftermorethantwo(2)yearsofoperationoftheAvenue,BroadwayandCapitol
    Theaters,thelessorOVECmadedemandsfortherepossessionofthesaidleasedpropertiesinviewoftheSy's
    arrears in monthly rentals and nonpayment of amusement taxes. On August 8,1979, OVEC and Sy had a
    conferenceandbyreasonofSy'srequestforreconsiderationofOVECsdemandforrepossessionofthethree(3)
    theaters, the former was allowed to continue operating the leased premises upon his conformity to certain
    conditionsimposedbythelatterinasupplementalagreementdatedAugust13,1979.
    Inpursuanceoftheirlatteragreement,Sy'sarrearsinrentalintheamountofP125,455.76(asofJuly31,1979)
    wasreducedtoP71,028.91asofDecember31,1979.However,theaccruedamusementtaxliabilityofthethree
    (3)theaterstotheCityGovernmentofCabanatuanCityhadaccumulatedtoP84,000.00despitethefactthatSy
    had been deducting the amount of P4,000.00 from his monthly rental with the obligation to remit the said
    deductionstothecitygovernment.Hence,lettersofdemanddatedJanuary7,1980andFebruary3,1980were
    senttoSydemandingpaymentofthearrearsinrentalsandamusementtaxdelinquency.Thelatterdemandwas
    withwarningthatOVECwillreenterandrepossesstheAvenue,BroadwayandCapitalTheatersonFebruary11,
    1980 in pursuance of the pertinent provisions of their lease contract of June 11, 1977 and their supplemental
    letteragreement of August 13, 1979. But notwithstanding the said demands and warnings SY failed to pay the
    abovementionedamountsinfullConsequently,OVECpadlockedthegatesofthethreetheatersunderleaseand
    took possession thereof in the morning of February 11, 1980 by posting its men around the premises of the Id
    moviehousesandpreventingthelessee'semployeesfromenteringthesame.
    Sy,throughhiscounsel,filedthepresentactionforreformationoftheleaseagreement,damagesandinjunction
    lateintheafternoonofthesameday.AndbyvirtueofarestrainingorderdatedFebruary12,1980followedbyan
    order directing the issuance of a writ of preliminary injunction issued in said case, Sy regained possession and
    operationoftheAvenue,BroadwayandCapitaltheaters.
    Asfirstcauseofaction,SyallegedthattheamountofdepositP600,000.00asagreedupon,P300,000.00of
    whichwastobepaidonJune13,1977andthebalanceonDecember13,1977wastoobigandthatOVEC
    hadassuredhimthatsaidforfeiturewillnotcometopass.Bywayofsecondcauseofaction,Sysoughttorecover
    from OVEC the sums of P100,000.00 which Sy allegedly spent in making "major repairs" on Broadway Theater
    and the application of which to Sy's due rentals (2) P48,000.00 covering the cost of electrical current allegedly
    used by OVEC in its alleged "illegal connection" to Capitol Theater and (3) P31,000.00 also for the cost of
    electrical current allegedly used by OVEC for its alleged "illegal connection" to Broadway Theater and for
    damages suffered by Sy as a result of such connection. Under the third cause of action, it is alleged in the
    complaintthatonFebruary11,1980,OVEChadthethreetheaterspadlockedwiththeuseofforce,andthatasa
    result,SysuffereddamagesattherateofP5,000.00aday,inviewofhisfailuretogothruthecontractshehad
    enteredintowithmovieandbookingcompaniesfortheshowingofmoviesatABC.Asfourthcauseofaction,Sy
    prayedfortheissuanceofarestrainingorder/preliminaryinjunctiontoenjoinOVECandallpersonsemployedby
    itfromenteringandtakingpossessionofthethreetheaters,conditioneduponSy'sfilingofaP500,000.00bond
    suppliedbyCountryBankersInsuranceCorporation(CBISCO).
    OVEC on the other hand, alleged in its answer by way of counterclaims, that by reason of Sy's violation of the
    terms of the subject lease agreement, OVEC became authorized to enter and possess the three theaters in
    questionandtoterminatesaidagreementandthebalanceofthedepositsgivenbySytoOVEChadthusbecome
    forfeitedthatOVECwouldbelosingP50,000.00foreverymonththatthepossessionandoperationofsaidthree
    theatersremainwithSyandthatOVECincurredP500,000.00forattorney'sservice.
    ThetrialcourtarrivedattheconclusionsthatSyisnotentitledtothereformationoftheleaseagreementthatthe
    repossession of the leased premises by OVEC after the cancellation and termination of the lease was in
    accordancewiththestipulationofthepartiesinthesaidagreementandthelawapplicabletheretoandthatthe
    consequent forfeiture of Sy's cash deposit in favor of OVEC was clearly agreed upon by them in the lease
    agreement.ThetrialcourtfurtherconcludedthatSywasnotentitledtothewritofpreliminaryinjunctionissuedin
    his favor after the commencement of the action and that the injunction bond filed by Sy is liable for whatever
    damagesOVECmayhavesufferedbyreasonoftheinjunction.
    On the counterclaim of OVEC the trial court found that the said lessor was deprived of the possession and
    enjoymentoftheleasedpremisesandalsosuffereddamagesasaresultofthefilingofthecasebySyandhis
    violationofthetermsandconditionsoftheleaseagreement.Hence,itheldthatOVECisentitledtorecoverthe
    saiddamagesinadditiontothearrearsinrentalsandamusementtaxdelinquencyofSyandtheaccruedinterest
    thereon. From the evidence presented, it found that as of the end of November, 1980, when OVEC finally
    regained the possession of the three (3) theaters under lease, Sy's unpaid rentals and amusement tax liability
    amountedtoP289,534.78.Inaddition,itheldthatSywasunderobligationtopayP10,000.00everymonthfrom
    Febr

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