Nayong Pilipino goes to SC vs lessee

The Nayong Pilipino Foundation, Inc. (NPFI) has asked for the intervention of the Supreme Court in evicting a lessee who continuously refuses to vacate their property to give way for the construction of a new building at the old international airport.

NPFI lawyers cited a 1994 out-of-court settlement agreement reached with Columbia Airfreight, after the company failed to pay millions of pesos in back rentals.

Under the agreement, Columbia Airfreight agreed to pay P1.7 million representing rental from May 1993 to April 1994 or pay P156,000 monthly.

In order to give way to any government project in the future, the agreement provides that Nayong Pilipino will notify Columbia Airfreight so that it may be able to relocate the offices it is sub-leasing in the area.

Because of the impending airport expansion project, the lease agreement was carried on a month-to-month basis.

On Oct. 17, 1995, NPFI informed Columbia Airfreight of the need to vacate the premises in view of the implementation of the construction of the new building.

Instead of heeding the notice, Columbia immediately went back to the Pasay Regional Trial Court to file a motion for execution of the very same settlement agreement.

The Pasay RTC ruled in favor of Columbia Airfreight as well as the Court of Appeals when the case was elevated to it.

In its motion to the Supreme Court, NPFI lawyers argued that under the agreement, the phrase "shall be able to execute another contract" cannot be interpreted to mean "should execute another contract."

Likewise, the lawyers noted that the courts cannot compel one party to enter into a contract with another party.