SC orders Jalosjos to vacate Dakak property

MANILA, Philippines — The Supreme Court (SC) has ordered operators of the Dakak Beach Resort Corp. led by Romeo Jalosjos to vacate a 1,602-square-meter property in Dapitan, Zamboanga del Norte that they have been leasing for 20 years.

In a 19-page resolution, the SC upheld a decision of the Regional Trial Court (RTC) and the Court of Appeals ordering the respondents to return the property and the permanent structures built on it to its owner as well as settle rental payments and moral and exemplary damages.

Records showed Violeta Saguin de Luzuriaga leased the property to Dakak, represented by Jalosjos, under a 10-year agreement.

The lease agreement stated that any permanent and fixed structures built on the property would be turned over to Luzuriaga at the end of the contract.

The resort did not furnish Luzuriaga a copy of the contract. Believing the lease expired after five years, Luzuriaga rejected rental payments and demanded that the operators vacate the land.

The resort continued using the property without paying rent.

Luzuriaga sold the property to her daughter Pilar Mendezona, who made similar demands, but which were also ignored by Dakak.

Mendezona and her husband filed a complaint for recovery of possession, rentals and damages against Dakak before the RTC.

Jalosjos and his companions said they have the preferential right to acquire the land over Mendezona due to their multimillion-dollar investments in the area.

They argued that they have the right to redeem the land since it is a rural property adjacent to a similar property that they own.

The respondents said if they must return the land, they must be reimbursed for the cost of structures that they built.

The SC ruled that Jalosjos and the Dakak operators have no right to redeem the land or be reimbursed for the structures.

Citing Article 1621 of the New Civil Code, the high tribunal said that owners of adjoining lands have the right to redeem a piece of rural land sold to a third party.

The SC said the adjoining lands owned by the Dakak operators, which house the Dakak Beach Resort, are used for commercial purposes and not classified as rural property.

The SC also found Jalosjos and the resort operators guilty of fraud and bad faith since they have been using the land for their financial gain for more than 20 years.