4/7/2021
E-Library - Information At Your Fingertips: Printer Friendly
The CA was mistaken in appreciating the facts of the case. Contrary to its ruling, a
perusal of the complaint filed by petitioner makes out a case for collection of sum of
money and not for breach of contract. It is to be noted that the lease agreement had
already expired when petitioner filed an action for the return of the security deposit.
Since the lease had already expired, there is no more contract to breach.[30] The
demand for the return of the security deposit was merely a collection suit. What the
petitioner prayed for before the MTCC was the return of the amount of P90,000.00, and
not to compel respondent to comply with his obligation under the lease agreement. As
such, the CA erred when it held that the MTCC has no jurisdiction over the case and
dismissed the same for lack of jurisdiction.
Respondent pleaded as counterclaim in his answer the cost of the repairs amounting to
P79,534.00, which he incurred in fixing the two units leased by the petitioner. Petitioner
rendered the two apartment units hazardous because petitioner recklessly and with
impunity disregarded all norms of decent living. Petitioner destroyed the two apartment
units and rendered it inhabitable and in need of major repairs. Thus, while respondent
must return the security deposit to petitioner, respondent had the right to withhold the
same and to apply it to the damages incurred by the apartment units occupied by
petitioner. The RTC found that respondent spent a total of P79,534.00 for the repairs on
the leased premises. Petitioner, when it occupied the apartment units, acknowledged
that the leased premises were in good and tenantable condition. Petitioner shouldered
all expenses for repairs of the apartment units, regardless of its nature, and that upon
termination of the lease, petitioner must surrender the premises, also in the same good
and tenantable condition when taken, with the exception of ordinary wear and tear.
However, photographs of the extent of the damage on the leased premises presented
during trial showed that when petitioner vacated the apartment units, they were in
need of major repairs. The repairs undertaken by respondent were all covered by
receipts, which the latter furnished to petitioner. The failure of petitioner to inspect the
repairs undertaken by respondent, despite notice of the same, bars petitioner to
question the propriety of the repairs on the apartment units. Therefore, the RTC was
correct when it ordered the offsetting of the P90,000.00 security deposit to the
expenses of the repairs amounting to P79,534.00.
However, the award of nominal damages has no basis. It has been settled that nominal
damages cannot co-exist with actual damages.[31] Nominal damages are adjudicated in
order that a right of the plaintiff, which has been violated or invaded by the defendant,
may be vindicated or recognized, and not for the purpose of indemnifying the plaintiff
for any loss suffered by him. Since respondent has already been indemnified for the
damages made on the leased premises, there is no more reason to further grant
nominal damages.
Since respondent must return the security deposit of P90,000.00 less than the cost of
repairs amounting to P79,534.00, the remaining amount of P10,466.00, should still be
returned by respondent to petitioner.
WHEREFORE, the Decision dated February 25, 2011 of the Court of Appeals in CA-G.R.
SP No. 01315 dismissing the complaint and holding that the case is one for specific
performance incapable of pecuniary estimation and, therefore, within the original
https://elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/66024
5/8