Source: http://lawlibrary.chanrobles.com/index.php?option=com_content&amp;view=article&amp;id=50675:gr-164587-2008&amp;catid=1502&amp;Itemid=566
Timestamp: 2019-04-18 18:45:19+00:00

Document:
G.R. No. 164587 - ROCKLAND CONSTRUCTION CO. INC. v. MID-PASIG LAND DEVELOPMENT CORP.
ROCKLAND CONSTRUCTION COMPANY, INC., Petitioner, v. MID-PASIG LAND DEVELOPMENT CORPORATION, Respondent.
This Petition for Review seeks the reversal of the Decision1 and Resolution2 dated February 27, 2004 and July 21, 2004, respectively, of the Court of Appeals in CA-G.R. CV No. 76370. The appellate court had reversed and set aside the Decision3 dated September 2, 2002 of the Regional Trial Court (RTC), Branch 67 of Pasig City, in Civil Case No. 68350; dismissed petitioner's complaint; and held that there was no perfected contract of lease between the parties.
Rockland Construction Company, Inc. (Rockland), in a letter4 dated March 1, 2000, offered to lease from Mid-Pasig Land Development Corporation (Mid-Pasig) the latter's 3.1-hectare property in Pasig City. This property is covered by Transfer Certificate of Title Nos. 469702 and 337158 under the control of the Presidential Commission on Good Government (PCGG). Upon instruction of Mid-Pasig to address the offer to the PCGG, Rockland wrote the PCGG on April 15, 2000. The letter,5 addressed to PCGG Chairman Magdangal Elma, included Rockland's proposed terms and conditions for the lease. This letter was also received by Mid-Pasig on April 18, 2000, but Mid-Pasig made no response.
Again, in another letter6 dated June 8, 2000 addressed to the Chairman of Mid-Pasig, Mr. Ronaldo Salonga, Rockland sent a Metropolitan Bank and Trust Company Check No. 29300501687 for P1 million as a sign of its good faith and readiness to enter into the lease agreement under the certain terms and conditions stipulated in the letter. Mid-Pasig received this letter on July 28, 2000.
Mid-Pasig, however, denied it accepted Rockland's offer and claimed that no check was attached to the said letter. It also vehemently denied receiving the P1 million check, much less depositing it in its account.
In its letter10 dated February 6, 2001, Mid-Pasig replied to Rockland that it was only upon receipt of the latter's February 2 letter that the former came to know where the check came from and what it was for. Nevertheless, it categorically informed Rockland that it could not entertain the latter's lease application. Mid-Pasig reiterated its refusal of Rockland's offer in a letter11 dated February 13, 2001.
Rockland then filed an action for specific performance docketed as Civil Case No. 68350 in the RTC, Branch 67 of Pasig City. Rockland sought to compel Mid-Pasig to execute in Rockland's favor, a contract of lease over a 3.1-hectare portion12 of Mid-Pasig's property in Pasig City.
With costs against the defendant.
On appeal, the Court of Appeals reversed and set aside the trial court's decision on the following grounds: (1) there was no meeting of the minds as to the offer and acceptance between the parties; (2) there was no implied acceptance of the P1 million check as Mid-Pasig was not aware of its source at the time Mid-Pasig discovered the existence of the P1 million in its account; and (3) Rockland's subsequent acts and/or omissions contradicted its claim that there was already a contract of lease, as it neither took possession of the property, nor did it pay for the corresponding monthly rentals. Accordingly, the Court of Appeals dismissed Rockland's complaint, as well as Mid-Pasig's counterclaim. Rockland sought reconsideration, but it was denied.
Rockland contends that the contract of lease had been perfected and that Mid-Pasig is in estoppel in pais because it impliedly accepted its offer when the P1 million check was credited to Mid-Pasig's account.
Mid-Pasig counters that it never accepted Rockland's offer. It avers it immediately rejected Rockland's offer upon learning of the mysterious deposit of the P1 million check in its account.
Since the re-stated issues are intertwined, we shall discuss them jointly.
A close review of the events in this case, in the light of the parties' evidence, shows that there was no perfected contract of lease between the parties. Mid-Pasig was not aware that Rockland deposited the P1 million check in its account. It only learned of Rockland's check when it received Rockland's February 2, 2001 letter. Mid-Pasig, upon investigation, also learned that the check was deposited at the Philippine National Bank (PNB) San Juan Branch, instead of PNB Ortigas Branch where Mid-Pasig maintains its account. Immediately, Mid-Pasig wrote Rockland on February 6, 2001 rejecting the offer, and proposed that Rockland apply the P1 million to its other existing lease instead. These circumstances clearly show that there was no concurrence of Rockland's offer and Mid-Pasig's acceptance.
WHEREFORE, the instant petition is DENIED. The Decision and Resolution dated February 27, 2004 and July 21, 2004, respectively, of the Court of Appeals in CA-G.R. CV No. 76370 are AFFIRMED. Costs against the petitioner.
1 Rollo, pp. 24-36. Penned by Associate Justice Edgardo F. Sundiam, with Associate Justices Eubulo G. Verzola and Remedios Salazar-Fernando concurring.
2 Id. at 49. Penned by Associate Justice Edgardo F. Sundiam, with Associate Justices Remedios Salazar-Fernando and Danilo B. Pine concurring.
3 Id. at 51-65. Penned by Judge Mariano M. Singzon, Jr.
4 Records, folder no. 1, p. 152.
10 Records, folder no. 2, pp. 457-458.
12 Records, folder no. 1, p. 151. Comprising 5,000 square meters, 11,000 square meters and 15,000 square meters.
15 Swedish Match, AB v. Court of Appeals, G.R. No. 128120, October 20, 2004, 441 SCRA 1, 18.
16 CIVIL CODE, Art. 1320.
18 Swedish Match, AB v. Court of Appeals, supra at 19.
19 Philippine National Bank v. Court of Appeals, Nos. L-30831 & L-31176, November 21, 1979, 94 SCRA 357, 368.
20 III J. Vitug, Civil Law Annotated 166-167 (2003 ed.).
21 La Naval Drug Corporation v. Court of Appeals, G.R. No. 103200, August 31, 1994, 236 SCRA 78, 87.

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