Dakak Resort, Romeo Jalosjos ordered to vacate portion of property by SC
After a decades-long dispute, the Supreme Court has ordered Dakak Beach Resort Corporation and Romeo Jalosjos to vacate a portion of the property they have been leasing in Dapitan City, Zamboanga del Norte. They were also found guilty of "fraud and bad faith."
Dakak and Jalosjos were issued an eviction order, asking them to return a part of the land and the permanent structures built on it to its owner, pay unpaid rent, and settle P1.5 million in damages.
According to court records, Violeta Saguin de Luzuriaga leased the land to Dakak, represented by Jalosjos, under a 10-year agreement in 1987. It was agreed upon that the fixed structures in the area would be turned over to Luzuriaga after the lease ended.
Despite "repeated demands," Dakak never provided Luzuriaga with a copy of the contract. Since the contract has expired, Luzuriaga did not accept any rental payments, but instead, asked Dakak to vacate a part of it.
Ignoring the demands, Dakak stopped rental payments but maintained its use of the land even at the requests of its new owner, Pilar Mendezona, the daughter of Luzuriaga. Mendezona and her spouse had no choice but to file a complaint "for recovery of possession, rentals, and damages."
As stated in the document, Dakak argued that they complied with the terms and conditions of the lease contract and Luzuriaga also enjoyed the facilities of the resort. The resort also said they have a "preferential right to acquire the subject property" as opposed to its new owners due to the "multi-million investment of the corporation in the area."
Moreover, they argued that the property, being rural and across their own, gave them the right to own it. If they must return a portion of the land, Dakak insisted on being reimbursed for the expenses incurred in constructing the structures there.
Both the Regional Trial Court and the Court of Appeals ruled in favor of the Mendezonas, a decision affirmed by the SC.
While Article 1621 of the New Civil Code grants owners of adjoining lands the right to redeem a piece of rural land sold to a third party, both lands must be classified as rural. In Dakak's case, the affected area was used for commercial purposes, thus, the resort had no right to get it back nor could not get paid back for the buildings it put there.
Meanwhile, to have rights to the buildings, you need to be a "builder in good faith."
SC said: "Under Article 448 of the New Civil Code, a builder in good faith is someone who constructs on land while believing they own it. Article 546 further provides that they may retain the structures they built until they are reimbursed by the owner." It does not apply "when the relationship between the parties is based on a contract."
Dakak and Jalosjos were found guilty of fraud and bad faith by the SC, and are ordered to pay damages to the Mendezonas.
“Dakak has been using [the land] for its own financial gain for more than 20 years at the expense of its lawful owner. The non-payment of rent to [Luzuriaga] and Spouses Mendezona, the outright refusal to vacate the property despite several demands and dragging of a simple lease contract for years smack of utter bad faith and wanton disregard of contractual obligations. The act of oppression of Dakak and Jalosjos against a small landowner cannot be left unpunished,” the SC said.
Dakak responds
Dakak, on their Facebook page, said the resort "remains uninterrupted" and that they have filed a motion for reconsideration.
"The Supreme Court order involves only 1,602 sqm, a tiny portion of our vast 156-hectare paradise. This area is NOT PART of our guests’ spaces, and our operations continue smoothly and uninterrupted," their March 20 post read.
"Rest assured, Dakak Beach Resort is fully operational and ready to welcome you. Thank you for your continued support and trust!"
