25 Republic Vs Peralta

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CASE No.

25
G.R. No. 184253, July 06, 2011

REPUBLIC VS. PERALTA

Facts:
When respondents and intervenors were still in the active service at the Philippine
Navy, all of them were awarded military quarters at the Military Enlistedmen Quarters
(MEQ) located inside the Bonifacio Naval Station (BNS), Fort Bonifacio, Makati City.
Respondents and intervenors entered into contracts of lease with the BNS
Commander for their occupation of the said quarters. Subsequently, members of the
Philippine Navy and Marines occupying the BNS quarters, including respondents and
intervenors, formed the Navy Enlistedmen Homeowner's Association, Inc. (NEHAI).
However, even after their retirement, respondents and intervenors continued to
occupy their assigned quarters.

NEHAI filed before the Regional Trial Court of Makati City a petition for declaratory
relief against the Department of Environment and Natural Resources, Land
Management Bureau, and the Armed Forces of the Philippines Officer's Village.
NEHAI claimed that its members, as actual occupants of the MEQ, have the right of
first priority to purchase the MEQ property under the provisions of Proclamation No.
461, in relation to Republic Act Nos. 274 and 730.

Respondents Estallo, Raquion and Ragas received letters from the BNS Commander
advising them to vacate their respective quarters. NEHAI's counsel replied and
informed the BNS Commander of their pending petition for declaratory relief and asked
that the eviction be deferred until the court has rendered a decision. The BNS
Commander denied NEHAI's request. Respondents were again ordered to vacate
their quarters.

To forestall their ejectment, respondents filed a complaint for injunction with prayer for
the issuance of preliminary injunction and/or temporary restraining order against the
Philippine Navy before the trial court.
Intervenors Bantog and Velasco joined respondents' cause by filing a complaint-in-
intervention.

The trial court granted respondents' and intervenors' application for preliminary
injunction. According to the trial court, the BNS Commander cannot forcibly evict
respondents and intervenors without any court order. If the BNS Commander evicts
them, it would violate their right against eviction under Republic Act No. 7279. The trial
court added that the proper recourse of the BNS Commander was to file a complaint
for unlawful detainer against respondents and intervenors.
Petitioner filed a motion for reconsideration. NEHAI also filed a motion for intervention
and attached its complaint-in-intervention. NEHAI alleged that it has legal interest in
the matter and that it will be prejudiced by the distribution or disposition of the MEQ
property. Petitioner filed an opposition to NEHAI's motion.

The trial court denied the MR and granting NEHAI's motion to intervene. The trial court
said that NEHAI has the legal personality to intervene and that the intervention will not
delay or prejudice the adjudication of the rights of the original parties. The trial court
also enjoined the BNS Commander from effecting the eviction of all the members of
NEHAI from their respective quarters.

Petitioner filed a motion for reconsideration which was later on denied.


Petitioner filed a petition for certiorari before the Court of Appeals. Petitioner asked the
Court of Appeals to annul the trial court’s decision. However, the Court of Appeals
dismissed the petition for lack of merit.
Hence, this appeal.
Issue:
Whether under the facts hereof, there is an indispensable need for petitioner to file an
ejectment suit before it may evict respondents and intervenors from the subject military
housing quarters.

Ruling:
The petition has merit.
Petitioner argues that a judicial action is not necessary to evict respondents and
intervenors from the leased military quarters because their contracts of lease have
long expired. Petitioner adds that the contracts of lease specifically authorized
petitioner to extrajudicially take over the possession of the leased military quarters
after the expiration of their contracts.

Contractual stipulations empowering the lessor to repossess the leased


property extrajudicially from a lessee whose lease has expired have been held
to be valid. Being the law between the parties, they must be respected.

The occupancy by respondents and intervenors of the military quarters is covered by


contracts of lease.
The following stipulations can be found in the contracts of lease:
3. That the party of the Second Part hereby binds himself to leave or vacate this
assigned quarters on the effective day of his retirement/reversion/separation
from the AFP.
7. That the term or duration of this contract shall be for an inclusive period of
three (3) years reckoned from the date of actual or constructive occupancy,
subject to renewal for another three (3) years at the option of the Party of the First
Part. However, the three year term may be accelerated and terminated earlier by
either of the following: (a) Discharge/separation of an enlisted personnel prior to
his term of enlistment or upon expiration of his current term of enlistment by
reason of and under the provision on pertinent laws and regulations; (b)
Reversion to inactive status of an officer prior to the date of his extended tour of
active duty or upon the date of expiration of said extended tour of duty by reason
of and under the provisions of pertinent laws and regulations; (c) Separation of a
regular officer from the military service either by resignation or by action of the
Efficiency and Separation Board or other modes prescribed by laws or
regulations; (d) Retirement from the military service, whether optional or
compulsory, of a regular or Reserve officer or enlisted personnel; (e) Failure of
the Party of the Second Part to either pay/liquidate his rentals and/or water light
bills; and (f) Failure of the Party of the Second Part to comply with the provisions
of PNHB Circular Nr 12 dated 20 October 1978, post regulations and other similar
regulations, and/or violation of any of the terms and conditions of this contract.

Respondents and intervenors had long retired from military service. Therefore, they
are no longer entitled to stay in the military quarters because their contracts of lease
have been terminated by their retirement from the service.

Respondents and intervenors, who are no longer in the military service, are occupying
quarters in the Bonifacio Naval Station, a military facility or reservation that is subject
to special military regulations commensurate to the requirements of safety and
protection of military equipment and personnel. The naval facility is outside the
commerce of man and the lease of quarters to military personnel in the service is
merely incidental to their military service. Such lease is not an ordinary lease of a
residential or commercial building. Upon retirement of the military personnel, their
quarters have to be occupied by the military personnel in the active service who
replace them.
Since respondents and intervenors agreed to abide by the foregoing regulations of the
military facility, judicial action is no longer necessary to evict respondents and
intervenors from the military quarters. Respondents and intervenors authorized
petitioner to extrajudicially take over the possession of the leased military housing
quarters after their retirement. This is also in line with the policy of the Armed Forces
of the Philippines and the Philippine Navy to provide military quarters for the exclusive
use of military personnel who are in the active service.

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