Bugnay Construction v.

Laron Digest
G.R. No. 79983 August 10, 1989
Ponente: Regalado, J.:
Facts:
1. A lease contract between the City of Dagupan and P & M Agro was executed for the
use of a city lot called the Magsaysay Market Area. Subsequently, the City filed a case to
rescind the contract due to the failure of P&M to comply with the lease contract
conditions.
2. Thereafter, the City issued a resolution granting the lease of said lot to the petitioner
Bugnay COnstruction for the establishment of a Magsaysay Market building. As a result,
respondent Ravanzo filed a taxpayer's suit against the City assailing the validity of the
lease contract between the petitioner and the city. Ravanzo was the counsel of P&M Agro
in the earlier case.
Issue: Whether or not the respondent is the real party in interest
NO.
1. The Court held that the respondent has no standing to file the case. There was no
disbursement of public funds involved in this case since it is the petitioner, a private party
which will fund the planned construction of the market building.
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