MANILA — The Supreme Court has ordered the Dakak Beach Resort Corporation and Romeo Jalosjos to vacate a 1,602-square-meter property in Dapitan City, Zamboanga Del Norte after failing to honor a lease contract and non-payment of rent. 

In a 19-page decision written by Associate Justice Alfredo Benjamin Caguioa, the high court's Third Division upheld the rulings of the Regional Trial Court and the Court of Appeals, which favored the property's current owner Pilar Mendezona who demanded the return of the land, along with the permanent structures built on it, as well as the rent payment and damage payment of P1.5 million.

“Dakak has been using [the land] for its own financial gain for more than 20 years at the expense of its lawful owner,” the SC said in a press statement Thursday.

The SC emphasized that Dakak and Jalosjos' refusal to pay rent and vacate the property despite several demands “smack of utter bad faith and wanton disregard of contractual obligations.” 

Violeta Saguin de Luzuriaga, mother of Mendezona, leased the land to the beach corporation and Jalosjos under a 10-year agreement.

The SC said their contract also stated that any permanent structures built on it would belong to the land owner.

"Believing the lease had expired after five years, Luzuriaga rejected further rental payments and demanded that Dakak vacate," the high court stressed.

Dakak however ignored the request, stopped paying rent, yet continued operating on the property, according to court records. 

This led to Mendezona filing a formal complaint for recovery of possession, rentals, and damages against Dakak and Jalosjos. 

Saying that the adjoining lands owned by the beach corporation are used for commercial purposes, the SC ordered that Dakak has no right of redemption over the property.

It also stated that Dakak has no entitlement to reimbursement of any structure since the lease agreement expressly mentioned that the ownership of built structures would belong to the landowner as contract ends.