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petitioners' inability to enjoy or use its own property.[71] Here, the record shows that
petitioners were unable to use the property for the duration of their contract with
respondents.[72] Thus, this Court finds that the partial payments made by respondents
may be converted into rentals.
As to the parties' claims for damages, this Court reiterates that respondents' failure to
fully pay the purchase price effectively cancelled the contract to sell. As such, "the
parties shall stand as if the obligation to sell never existed."[73] Since the contract to
sell was effectively nonexistent, there was no basis for the alleged violations that would
have given rise to damages.
As to the payment of attorney's fees, ABS-CBN v. Court of Appeals[74] is instructive.
The general rule is that attorney's fees cannot be recovered as part of
damages because of the policy that no premium should be placed on the
right to litigate. They are not to be awarded every time a party wins a suit.
The power of the court to award attorney's fees under Article 2208 demands
factual, legal, and equitable justification. Even when a claimant is compelled
to litigate with third persons or to incur expenses to protect his rights, still
attorney's fees may not be awarded where no sufficient showing of bad faith
could be reflected in a party' s persistence in a case other than an erroneous
conviction of the righteousness of his cause.[75] (Emphasis supplied,
citations omitted)
Respondents did not act in bad faith when they sought the return of their partial
payments. Attorney's fees are, therefore, unwarranted in this case.
WHEREFORE, the Petition for Certiorari is GRANTED. The Court of Appeals' Decision,
promulgated on October 26, 2015, and its Resolution promulgated on May 12, 2016,
are hereby REVERSED and SET ASIDE. Likewise, the Regional Trial Court's December
20, 2013 Decision is hereby REVERSED and SET ASIDE.
Of the partial payments amounting to US$40,000.00 made by respondents Andrew T.
Norman and Janet A. Norman, US$22,925.00 is considered reasonable rentals paid for
use of the property of petitioners Rene Luis Godinez and Shemayne Godinez.
Petitioners Rene Luis Godinez and Shemayne Godinez are, however, ordered to return
US$17,075.00 of the US$40,000.00 to respondents Andrew T. Norman and Janet A.
Norman.
SO ORDERED.
Gesmundo, Carandang, and Zalameda, JJ., concur.
Gaerlan, J., on leave.
[1] Olivares Realty Corporation v. Castillo, 738 Phil. 737, 766-767 (2014) [Per J.
Leonen, Third Division].
[2] Rollo, pp. 3-21.
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