G.R. No.

129609
RODIL ENTERPRISES, INC. vs. CA
Bellosillo, J.:
FACTS: Petitioner Rodil Enterprises Inc. (RODIL) is the lessee of the Ides OR!cc! "#ildin$
(OR%&&%) since 19'9. It (!s ! )for*er !lien propert+) o,er (hich the Rep#-lic of the
Philippines !c.#ired o(nership -+ ,irt#e of R% /001 !s !*ended. 2o*eti*e in 1930 RODIL
entered into ! s#-le!se contr!ct (ith respondents &!r*en "ondoc1 4eresit! "ondoc5Esto1
Di,isori! 6oot(e!r !nd &h#! 7#!+ 2oon1 *e*-ers of the Ides OR!cc! "#ildin$ 4en!nts
%ssoci!tion Inc. (%22O&I%4ION).
On 2epte*-er 121 19321 "P 288 (!s en!cted. It !#thori9ed the s!le of )for*er !lien
properties) cl!ssified !s co**erci!l !nd ind#stri!l1 !nd the OR%&&% -#ildin$ (!s cl!ssified !s
co**erci!l propert+.
Director 6!ctor! of the "2RP:O $r!nted RODIL;s re.#est for !nother rene(!l of the le!se
contr!ct on 28 2epte*-er 1930 for !nother fi,e (') +e!rs fro* 2epte*-er 11 1930. 4he rene(!l
contr!ct (!s for(!rded to then 2ecret!r+ <ose de <es#s of DG2REP: for !ppro,!l. On
2epte*-er 2'1 1930 =ndersecret!r+ of DG2REP: R#fino ". "!n!s reco**ended to 2ecrect!r+
De <es#s the s#spension of the !ppro,!l of the rene(!l contr!ct -ec!#se the offer of the
%22O&I%4ION (!s *ore -enefici!l to the REP="LI&. Res#lt!ntl+1 on 2epte*-er 801 1930
2ecret!r+ De <es#s iss#ed !nother *e*or!nd#* to Director 6!ctor! dis!ppro,in$ the rene(!l
contr!ct in f!,or of RODIL1 !t the s!*e ti*e rec!llin$ !ll p!pers si$ned -+ hi* re$!rdin$ the
s#->ect. 2ecret!r+ De <es#s li?e(ise directed RODIL to p!+ its re!lt+ t!@ delin.#enc+ !nd
ordered the iss#!nce of ! te*por!r+ occ#p!nc+ per*it to the %22O&I%4ION.
On Octo-er 61 1930 RODIL filed !n !ction for specific perfor*!nce1 d!*!$es !nd
in>#nction (ith pr!+er for te*por!r+ restr!inin$ order -efore the Re$ion!l 4ri!l &o#rt of :!nil!
!$!inst the REP="LI&1 De <es#s1 "!n!s1 6!ctor! !nd the %22O&I%4ION. RODIL pr!+ed th!t !
restr!inin$ order -e iss#ed en>oinin$ the %22O&I%4ION or !n+ person !ctin$ #nder it fro*
collectin$ rent!ls fro* the occ#p!nts or s#-5lessees of OR%&&%. De <es#s1 "!n!s !nd 6!ctor!
(ere l!ter s#-stit#ted -+ 2ecret!r+ 6#l$encio 6!ctor!n of the Dep!rt*ent of En,iron*ent !nd
N!t#r!l Reso#rces (DENR) in the !ction for specific perfor*!nce. On :!+ 131 1992 RODIL
si$ned ! rene(!l contr!ct (ith Director P!l!d (hich (!s !ppro,ed -+ 2ecret!r+ 6!ctor!n. 4he
rene(!l contr!ct (o#ld e@tend the le!se for ten (10) +e!rs fro* 2epte*-er 11 1930. Rodil then
filed !n !ction for #nl!(f#l det!iner !$!inst Di,isori! 6oot(e!r1 "ondoc1 "ondoc5Esto !nd &h#!
7#!+ 2oon. =pon !ppe!l1 the &o#rt of %ppe!ls decl!red the contr!cts n#ll !nd ,oid !nd
dis*issed the !ctions for #nl!(f#l det!iner.
ISSUE: Ahether or not Rodil h!s the ri$ht to occ#p+ the -#ildin$ !nd e,o?e #nl!(f#l det!iner
!$!inst Di,isori! 6oot(e!r1 "ondoc1 "ondoc5Esto !nd &h#! 7#!+ 2oon.
RULING. Bes. 4he o(ner h!s the ri$ht to en>o+ !nd dispose of ! thin$1 (itho#t other li*it!tions
th!n those est!-lished -+ l!(. E,er+ o(ner h!s the freedo* of disposition o,er his propert+. It
is !n !ttri-#te of o(nership1 !nd this r#le h!s no e@ception. 4he REP="LI& -ein$ the o(ner of
the disp#ted propert+ en>o+s the prero$!ti,e to enter into ! le!se contr!ct (ith RODIL in the
e@ercise of its jus disponendi. 7ence1 !s lessor1 the REP="LI& h!s the ri$ht to e>ect #s#rpers of
the le!sed propert+ (here the f!ct#!l ele*ents re.#ired for relief in !n !ction for #nl!(f#l
det!iner !re present.
On the other h!nd1 in !n !ction for #nl!(f#l det!iner the pl!intiff need not h!,e -een in prior
ph+sic!l possession. Respondents h!,e !d*itted th!t the+ h!,e not entered into !n+ le!se
contr!ct (ith the REP="LI& !nd th!t their contin#ed occ#p!tion of the s#->ect propert+ (!s
*erel+ -+ ,irt#e of !c.#iescence. 4he records cle!rl+ sho( this to -e the c!se. 4he REP="LI&
*erel+ iss#ed ! )te*por!r+ occ#p!nc+ per*it) (hich (!s not e,en in the n!*e of the
respondents "ondoc1 "ondoc5Esto1 Di,isori! 6oot(e!r or &h#! -#t of respondent
%22O&I%4ION. 2ince the occ#p!tion of respondents (!s *erel+ toler!ted -+ the REP="LI&1
the ri$ht of possession of the l!tter re*!ined #ninterr#pted. It co#ld therefore !lien!te the s!*e
to !n+one it chose. =nfort#n!tel+ for respondents1 the REP="LI& chose to !lien!te the s#->ect
pre*ises to RODIL -+ ,irt#e of ! contr!ct of le!se entered into on :!+ 131 1992. Res#lt!ntl+1
petitioner h!d the ri$ht to file the !ction for #nl!(f#l det!iner !$!inst respondents !s one fro*
(ho* possession of propert+ h!s -een #nl!(f#ll+ (ithheld.